Real Estate Solution

The Real Estate Auctioneer: White Knight To Home Sellers

Auctions Are Proving To Be The Godsend For Banks,
Governments, And Home Owners As They Struggle
To Sell Real Estate Holdings In Today’s Housing Market

Auctions have been around since recorded history and varied merchandise has been sold by the auction method through the ages. Today, auctions are still the preferred sales strategy for many commodities such as automobiles and livestock. But today’s auctions are taking on a broader role as the complexities of the marketplace and mounting competition are making it more difficult to realize a fair profit. One area that is benefiting from the auction sales method is real estate.

Auctions for real estate were historically reserved for distressed properties. Owners of residential and commercial properties who faced losing their properties or banks and governments that held foreclosed real estate normally used the auction method for selling their properties, often at prices much lower than market value. This is not true anymore.

Traditionally, real estate that was not in a distressed state would not normally be sold through auctions. Home owners and corporate real estate owners relied on the tightly knit Realtor network to sell their properties through the MLS system that could only be accessed by licensed agents. We are now seeing a shift in people’s perceptions about the value that a real estate auction can provide.

In the last two years we have seen a surge in the number of homes being auctioned off all across the country along with the number of potential buyers. More and more home sellers and home buyers are realizing the benefits of selling and buying through an auction. It only makes sense. There are not many sales methods that equally favor the seller and the buyer. Auctions offer a win-win situation for everyone involved.

When we look at the benefits to both sellers and buyers, it is hard to find another method for selling real estate that compares.

Let’s look at how an auction benefits the seller:
1. Buyers attend auctions to buy and they are financially qualified
2. Property is sold at true market value resulting in the highest possible price
3. The property is exposed to a large number of pre-qualified prospects
4. Competition among bidders is created resulting in accelerating prices
5. Property is sold “As Is”
6. There are no lengthy negotiations
7. Fast settlement and payment reduces carrying and maintenance costs and taxes
8. Property sells in a very short time period
And there are more.

Now let’s look at how auctions benefit the buyer:
1. The seller is committed to a sale of his property
2. Buyers determine the selling price of the property
3. Time to purchase real property is reduced
4. Buyers compete fairly on the same terms through open bidding
5. There are no lengthy negotiations
6. Buyers receive a comprehensive packet of property information with full disclosures
7. Properties sell for fair market value with many bargain opportunities
8. Fast settlements allow for quick ownership

The benefits of using an auction to sell real estate continues to make it attractive to banks and home owners. You will begin to see a gradual increase in the number of homes that will be sold through the auction method through this year and beyond as the housing crises hangs on.

Once the auction method for selling real estate gains notoriety and it’s benefits are realized by the general public, it will become as normal a part of home sales and commercial property sales as the current Agent/MLS system. In some countries, the sale of homes through auctions far exceeds the number sold by Realtors . We see this trend taking hold in America and we will see more and more homes being sold by auctions and the number of buyers who come to buy.

So, who’s your auctioneer?

Till Next Time,
Bernie, The Auctioneer

About the author:
Bernie Rosellen is a Virginia licensed Auctioneer and Realtor® and owner of Bellwether Auctions Co., LLC. He and his team help both home buyers and home sellers get the most out of their real estate transaction and they specialize in the Richmond, VA area and surrounding counties. You can find out more about auctions, real estate, and Bernie and his team at http://www.BellwetherAuctions.com and http://www.RichmondRealEstateNetwork.com

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