On a sunny afternoon in Florida, an energetic crowd gathers on the lawn in a high end luxury property. A high and eagerly joked between auctioneer, a group of bidders and bidder fills the air. For several minutes, the auctioneer requests the second highest bid and the bidders answer. Suddenly, bidders are silent. The high bidder holds the breath in anticipation of winning the auction. The auction owner requests an additional bid. In a loud clear voice rolling over the audience, he says, Fair Warning, Last Chance the auctioneer pauses, SOLD And in less than 10 minutes, another multimillion dollar farm has changed owner.
Successful property auctions like the above happen throughout North America and the Caribbean. Recently, real estate auctions have risen, the increase in popularity is driven in part by growing stocks and the bleaching of the buyers confidence. Properties that sold in weeks with traditional methods are now waste of the market unable to attract buyers even as the sellers lower prices. Many say that the property boom is over but knowledgeable buyers and sellers benefit from real estate auctions.
Real estate auctions Work on up or down markets.
Regardless of trends or market cycles, property auctions offer an open and transparent process for buyers and sellers. Properly completed property auctions attract ready and willing buyers and motivate them to act now.
The auction method removes the wait and see setting which serves to further lower the property values. Buyers are always worried about overpayment. Buyers gain confidence in their purchases on property auctions because they can see what others are willing to pay.
When demand in the market is high and stocks are low, real estate auctions may give sales prices far beyond what a willing seller would have accepted in a negotiated private sale of sales. In a good sales climate, many property owners use traditional real estate methods. Negotiate with one buyer at a time, leave thousands of dollars of equity on the table. Under the upmarket, real estate auctions are the best way to determine the best market price.
Evaluate your property for auction
Not every property or seller for that part makes a good candidate for auction. First and foremost, sellers must be ready to sell now and to the current market value. In addition, a property auction will not solve problems caused by a decline in the market value of your property, if you owe more than a willing buyer will pay, be prepared to come close to your checklist.
Properties that go well in real estate auctions have a high uniqueness factor. Ask yourself, What makes my property different than most others? Perhaps you own a resort property or high end luxury home, commercial real estate and land make very good at auction. Property auctions are characterized by uniqueness. If your property is like everyone else is the best thing you can do, offer the most competitive price.
Most importantly, sellers must be reasonable to set a minimum bid. A seller must look at the lowest current comps and the price below it to generate the interest and urgency required for a successful real estate auction. When the auction begins and qualified bidders start to compete against each other, you can see the sale price.
Find a qualified property salesman
Start by checking with the National Auctioneers Association, the best property auctions belong to this organization. These auction owners are well educated and follow a practice and ethical code. Many attend the annual International Auctioneers Conference, featuring the latest technologies and innovations in property auctions.
Find out if the company you are interviewing is a full time real estate auction company. Many real estate agents get auction licenses but have no experience with the auction method of marketing. Implementing a successful property auction is nothing like private agreement traditional real estate sales. Join a real estate auction pro.
You are probably better with an auction house specializing in real estate auctions. There are many qualified auction owners who have generations of experiences selling personal property. furniture, plates, lawn and temporary rare painting. Sale of real estate at auction is a complex matter that should only be attempted by full time experienced property auctions.
Commissions and fees may vary, sellers must pay all promotional costs on the front and buyers usually pay 10 percent of the sale price to the auctioneer, of which a share goes to participating real estate agents.