The most common way to sell real estate in the U.S. is by listing it in MLS and then, if it doesn't get any interest, begin to drop the price until a buyer makes an acceptable offer (see above).


Most real estate agents don't realize that this method of selling is actually a type of auction.  It's called a dutch auction, just done very slowly.

By definition in Wikipedia, a Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.

So, since real estate agents are already using one type of auction, why not try a more traditional auction?  An auction where you open bidding to a group of interested buyers and let them compete against each other to determine the market value. It can be done much faster and is a much more exciting way to sell real estate.

The traditional auction puts you in control. You determine when the property is open for viewing, you control when the bidding will end and the seller decides whether they will accept the highest bid.

With the glut of inventory available in many markets, auctions are gaining momentum and by using the internet, you don't need to coordinate a "live" event, all the bidding can be done online.

Not sure how you can do it in your market? Join us Thursday for our next online auction training session.

 

Have you been involved in HUD sealed bid auctions?
10/06/2011
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Last month, I sold my first house as buyer agent for a buyer of a HUD property in my area of St. Louis, MO HUD homes in St. Louis are sold through an online "sealed bid" process and in case you're not familiar with it or it's different in… more
An Online Auction Creates 3 Opporunities to Sell
08/31/2011
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When I use an online auction to sell a property, I use a strategy that creates 3 opportunities to get a property under contract during the process. Here are the opportunities… 1st opportunity (Pre-bidding): Instead of letting… more
Still using slow dutch auctions to sell your listings?
07/26/2011
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Currently, the most common way to sell real estate in the U. S. is by listing it in MLS and then continuing to drop the price until a buyer makes an acceptable offer (see above). Most real estate agents don't realize this is an auction, a dutch… more
Do buyers overpay at auctions?
06/29/2011
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Last week, I took a buyer to a local "Williams & Williams" auction where they were selling 4 properties. The auction was done live on the front lawn of one of the properties and buyers could also participate online. If you haven't seen… more
Are the banks getting more motivated?
05/19/2011
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Last week, I took a buyer into a couple of bank owned "REO" properties that just came on the market. In the past, these type of properties were initially listed too high so we would wait until a property sat a while and had several price… more
What are the banks thinking?
04/14/2011
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Last week, I took a buyer into a bank owned "REO" property where the bank decided to have a company come in and rehab the inside (paint, carpet, new appliances and flooring bathrooms and kitchen). You can tell they took the lowest bid for the… more
Are you getting the best price for your REO listings?
03/09/2011
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At the end of January, I attended a Hudson & Marshall "live" auction in St. Louis with a buyer client of mine. In case you haven't seen a Hudson & Marshall auction, they do a very nice job. You can check out their upcoming auctions at… more
It's mostly about the marketing!
02/09/2011
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Last month, I shared some ideas on helping buyers be more comfortable bidding online. Since then, I held a 7-day online auction for a property in St. Louis and thought you might be interested in the results. First, despite the winter weather… more
Have we hit the bottom?
01/13/2011
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Last month, I shared how I've found some "hidden" deals for buyers in my St. Louis market on Auction. com (REDC auction company) I'm still finding them, and the reason they are "hidden" is because of the lack of coordination and communication… more
 

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