May Commercial Sales Drop 75 Percent
Sales Drop 50% Despite Builders’ Best Efforts
January Home Sales
Real Estate Auctions Thrive
2007 New Home Sales
Schnuck's pay $3M for property
Company to auction 100 foreclosed Memphis homes
Auctions gather steam as first option for home sellers
NAR Report: New-home sales recovery unlikely before 2009
Message is Clear: Buy Houses Now (from The Daily News)
New Kid on Block
Auction industry experiences extensive growth for 2006
Charity Auction Raises $83,000
Real Estate Brokers
Why would a Realtor work with an Auctioneer?
Real estate auctions are the fastest growing sector of the auction industry and are receiving widespread national media coverage.
A research study commissioned by the National Auctioneers Association shows that in 2005, residential real estate auctions, and commercial and industrial real estate generated $27.9 billion in revenue. Auctions of land and agricultural real estate topped that at $23.3 billion in estimated gross sales revenue. In terms of growth, these three real estate areas saw tremendous growth in 2005 and the NAA anticipates continued growth in 2006. These are some really impressive figures!
Based on these statistics alone, I'm sure you will agree that consumers see auctions as a viable and successful way to sell homes, land and business property. The stigma typically associated with auctions from the past is slowly fading and more and more people are utilizing the auction method to sell their real estate property.
Unfortunately, some Realtors are somewhat threatened by real estate auctions, seeing them as a competition which takes away their business. I am here today to tell you this isn't the case. A Realtor and Auctioneer can make a powerful team who can provide tremendous services to consumers. And, both parties will benefit their bottom line.
Broker Participation Form Time is On Our Side
The bottom line is: the quick turnaround saves you time, and time is money in any business.
No Contingencies or Negotiations
When a property is sold at auction, the terms and conditions are pre-set and non-negotiable. This means you don’t have to worry about buyers pulling out of the deal at the last minute. The sale is not contingent upon a loan approval because all buyers are pre-approved. And the property is sold “as is” with no stipulations for repairs or changes. Potential buyers are given ample time to inspect the property and make an informed decision prior to the auction. The sale is also not contingent upon selling current property, which is common in many traditional real estate deals. And there is no time spent negotiating a price. Bids are made fairly by registered bidders and there are no discussions or conferences – no counteroffers. The final price is the final price. The property is sold to the highest bidder, period – not ifs, ands or buts.
Auctions Force Buyers to Make Decisions
Another advantage to selling real estate through auction is that auctions force buyers to make decisions. How many times have you had an individual or a couple show interest in buying a certain home or property from you, but they seem indecisive about it? They might ask to take a second look at the property, and follow up with some more questions about the property a week or so later. With an auction, a decision must be made in a matter of seconds or the opportunity is lost. Bids are made and the highest bidder gets the property.
More Revenue through Competitive Bidding
Selling real estate by auction can be a means of obtaining more revenue. With traditional real estate sales methods, an asking price is established and the final sales price is negotiated down from there. Whereas, an auctioneer establishes a minimum price and the bids go up from there. The key is there is no cap on the upper end. Usually sellers risk overpricing the property and seeing very little interest. Or to the opposite extreme, they risk underpricing and selling for much less than the property is worth. The competitiveness of bidders is a plus during auctions. You can have as few as a handful of bidders or a larger crowd of dozens – all yearning for the same property. The more people, the higher the potential for driving the price up. These “bidding wars” are happening every day in the real estate business, but the difference is that they are “behind closed doors bidding wars”. During an auction, the competitor hears what all the others bidders have bid and it allows him or her to make an informed decision. The competitive nature of auctions many times means more revenue for the seller, Realtor and Auctioneer.
Enhancing Your Customer Base
Selling a property through the auction method brings other opportunities for business. Though there may be 5 or 10 or 20 bidders vying for the property, there is only one who comes out on top with the highest bid. This leaves the other bidders as prospective clients. Because they showed an interest in the property for sale, you already know what type of property they are looking for. And depending on when they stopped bidding, you know how much they are willing to spend. And remember, every bidder comes to the auction with a deposit check which means they have deposit money for property.
Earn Commissions!!!
When you make the choice to team up with Morris Auction Group to sell real estate, who is a member of the National Auctioneers Association, you can be sure that your client will be protected. Call us today to see how we can work together to solve your clients’ real estate needs