Real Estate Auctions Sell Property in 10 to 12 Minutes! 

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate.  A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air.  For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, "Fair warning, last chance" the auctioneer pauses, "SOLD!" And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller's lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.  

Real Estate Auctions Work in Up or Down Markets. 

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The Auction Method Advantage® removes the "wait and see" attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction 

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, "What makes my property different from most others?" Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness.  If your property is like everyone else's, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales.  Go with a real estate auction pro.

You're probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting.  Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller's market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction 

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction  

Seller agrees to sell at or above a published minimum bid price - this method is useful for internet auctions.

Seller Confirmation or Reserve Auction  

With a reserve auction, the seller "reserves" the right to accept or decline any bids usually within 48 hours of the auction.  Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.

For more information, contact Tower Auction Company at 317-333-6977, or by visiting them on the web at http://www.towerauctioncompany.com/ .

*Contact Information:

Douglas Hostetler

Tower Auction Company

3208 W. 16^th Street

Indianapolis, IN 46222

Phone: 317-333-6977

Email: info@towerauctioncompany.com

Web: http://www.towerauctioncompany.com/

*This article may be freely reprinted and redistributed as long as this paragraph remains intact. No alterations can be made whatsoever. Any quotes or references to this article must give credit to the author and include the following link http://www.towerauctioncompany.com/

An interesting thing happened to me today. I was preparing for a 10:00 A.M. appointment to show a four bedroom, two bath, well maintained home on an acre in a very desirable part of town to a buyer that I am representing. Just before leaving I get a call from the seller's agent telling me the seller has accepted an offer and not to come, "the property owner is not interested in any more offers", says the seller's agent.

Can you imagine, the seller has accepted the first decent offer so they are not interested in any other offers! This is a major difference between traditional real estate sales methods, (private treaty) and The Auction Method Advantage® . With an auction sellers benefit from multiple offers creating competition and the highest possible selling price and the best possible terms.

It makes me wonder how much equity the seller left on the table.

*Contact Information:

Tower Auction Company

3208 W. 16^th Street

Indianapolis, IN 46222

Phone: 317-333-6977

Email: info@towerauctioncompany.com

Web: http://www.towerauctioncompany.com/

America's wealthiest buyers are busy bidding at auction.

March 15, 2007 10:15 AM EST                                  

By Douglas Hostetler, Real Estate Auction News Senior Writer

INDIANAPOLIS, IN - While most home sellers in the national real estate market struggle to find willing buyers. Luxury home sellers find an eager audience at auction. 

 Luxury homes are the fastest growing segment of the real estate market in the United States. Even while the rest of the housing market is in a slump and heading for rougher territory the luxury home market is vibrant.

 A robust market for luxury properties does not guarantee overnight success for sellers of million dollar homes however. The number of homes priced at over 1 million or more in the United States is approaching 500,000.  With the highest concentration of luxury real estate found in Massachusetts, Florida, U. S. Virgin Islands, and California.

Selling a luxury property can often be a long and expensive process. Knowing your buyer and creating a unique selling proposition for your property can shorten the sales cycle and reduce expenses significantly.  This is why real estate auctions conducted by a professional and knowledgeable auctioneer are becoming the preferred method among luxury home sellers.

Winning bidders at luxury home auctions pay with cash.

And exactly who are these luxury home buyers. Let's take a look: first of all they can be recognized by their financial influence. A third are cash buyers, not affected by interest rates or fluctuations in the economy. Of those who use a mortgage, nearly half placed a 50% or more down payment.  And despite paying top dollar for their home purchase 40% will invest more money in major home renovations.

These buyers can afford multi million dollar homes for a reason; they are the best negotiators in the housing market. As far as negotiating style goes, 62% provide minimum divulgence playing it "close to the vest" while 24% "play hardball", and only 13% say "money is no object".  The auction method of selling real estate levels the playing field resulting in a fair selling price and acceptable terms for both buyer and seller.

Most luxury home buyers are "Baby Boomers".

How would you recognize a luxury home buyer on the street? Well to begin with two-thirds are of the "baby boom" generation (between the ages of 43 and 67), but many do not buy their first luxury home until they reach retirement in their early 60's.  They are nearly always married and two-thirds are "new money" as opposed to inherited wealth.

For an occupation the vast majority refer to themselves as large corporation business executives, closely followed by entrepreneurs who own their own business. This is rounded out by doctors, lawyers, inventors, professional athletes, stock broker, actor and musician. One in three buyers will come from over 500 miles away.

Luxury home buyers spend more time at home. 

Entertaining in style is very important to this group of buyers. They want party rooms for their children as well as outdoor living rooms with fully equipped kitchens, grills and fireplaces.  Media rooms with the latest in technology and sports bars where they and their quests can cheer on favorite teams.

Having the energy for all this entertaining requires good fitness so extensive exercise space is a requirement; multiple workout rooms, indoor lap pools, and indoor courts for basketball and tennis are in demand.

While fun and fitness is important, luxury home buyers are also practical and looking for spaces to reflect this sensibility. His and hers office space, computer work stations located in the kitchen. Even the laundry room is more significant; pulling double duty as a second pantry, storage area away from prying eyes or gift wrapping center.

And the entire package must be wrapped in security which is a top priority. A luxury property should have color video/audio cameras which can be viewed from any TV as well as the internet. Buyers want panic buttons and secure bullet proof rooms, and of course safes for valuables and important documents.

For more information, contact Tower Auction Company at 317-333-6977, or by visiting them on the web at http://www.towerauctioncompany.com/ .

*Contact Information:

Tower Auction Company

3208 W. 16^th Street

Indianapolis, IN 46222

Phone: 317-333-6977

Email: info@towerauctioncompany.com

Web: http://www.towerauctioncompany.com/

*This article may be freely reprinted and redistributed as long as this paragraph remains intact.

NATIONAL REAL ESTATE AUCTION COMPANY ANNOUNCES REO DISPOSITION PROGRAM

Indianapolis, IN - Tower Auction Company a national real estate auction firm based in Indianapolis, Indiana is pleased to announce a comprehensive turn key real estate disposition program for Loss Mitigation, Foreclosure, Bankruptcy, and REO asset managers.

Today REO managers have their hands full of bulging real estate portfolios filled with nonperforming assets. These REO properties represent a sellable asset on their balance sheets; however unsold these properties generate expenses and expose shareholders to risks from destruction, holding costs, and lost opportunities.

In the past banks would experience substantial profit drain while these Real Estate Owned properties remained unsold and nonperforming for 4 to 12 months or longer.

All the time incurring cost such as: sale preparation, maintenance, management, utilities, insurance, fees and commissions. This is why Tower Auction Company developed a timely cost effective method of disposition with a focus on maximizing shareholder return.

 The Auction Method Advantage® requires less than 60 days from initial marketing to settlement.  This full service marketing, sales, and settlement program provides property preservation and security, from eviction through closing, to include all title work further enhancing the banks ability to meet fiduciary obligations to shareholders.

"To begin with all offers are cash and without financing, inspection or appraisal contingencies. This lets sellers avoid the loss and risk associated with the old method of accepting non-binding contingent laden offers. Also by bringing multiple buyers together simultaneously the auction method advantages the seller by creating a competitive bidding environment. I am always astonished when a property brings more at auction than the previously published and unsuccessful list price." Says Hostetler. 

"But what I find REO managers really enjoy about The Auction Method Advantage®

Is the seven day seller approval period, giving them the necessary time to evaluate the entire packet of offers at once. Really any bank department with real estate can apply the auction approach, Trust, Loss Mitigation, Bankruptcy, or Foreclosure."

The Auction Method Advantage® is used very successfully in short sales (pre-foreclosure). Achieving resolution out of court with financially distressed borrowers, mortgage holders may avoid the expense and hazard of a foreclosure. The benefit here is a quick and equitable closing which avoids the risks of carrying the property through foreclosure proceedings and the deep discounting often required of vacant foreclosed properties.

Another advantage over traditional real estate sales methods is the ability to clear up entire real estate portfolios in a single day or over a few days depending on the volume. So whether you have 5 or 500 properties they can be sold concurrently but to different individual buyers avoiding the deep discounts required by a wholesale buyer.

Douglas Hostetler, President of Tower Auction Company has extensive experience working with banks and institutions in converting nonperforming assets into cash. He is a licensed AUCTIONEER and Real Estate Broker.

For more information, contact Tower Auction Company at 317-333-6977, or by visiting them on the web at http://www.towerauctioncompany.com/ .

*Contact Information:

Douglas Hostetler

Tower Auction Company

3208 W. 16^th Street

Indianapolis, IN 46222

Phone: 317-333-6977

Email: info@towerauctioncompany.com

Web: http://www.towerauctioncompany.com/

*This article may be freely reprinted and redistributed as long as this paragraph remains intact.

What are the advantages of listing real estate using the auction method versus traditionally?

When you list your real estate through the "private treaty method" you are publishing a sale price and competing with hundreds and even thousands of other properties. This means you can easily under price or overprice the property, you loose either way. By guessing at value you will either sell too cheap or your property will set on the market and become stigmatized all while you continue to pay the carry costs; mortgage, taxes, insurance, and maintenance. All the time marketing, showing and negotiating with only one buyer at a time. With the traditional listing process it is the buyer's interest that is protected. Even after the purchase agreement is signed the buyer will have the home inspected, the seller will then need to make costly repairs or lower the agreed upon selling price. After the inspection there are mortgage qualifications, and additional mortgage inspections of the property. At anytime the buyer can back out of the deal, leaving the seller with additional costs and time wasted. The auction method creates urgency, a reason to buy today! With auction marketing you are bringing many qualified buyers together on your terms; property sold as is with closing to take place within 30 days without financing or inspection contingencies. You set the time and date the property will sell, bringing together multiple buyers who competitively bid, producing top market price.  Only at auction can you get more than you asked for your property.

What is "fair market value"?

Fair market value is the price for which property sells for on the open market between a willing buyer and a willing seller. At auction you can separate your property from all the others by creating excitement and bringing many qualified buyers who bid against each other, creating maximum return for the seller. Selling on the date you want to sell and with the terms you want.

What types of properties are sold at auction?

Every type of property, sold one at a time or in groups. Fixer uppers to luxury residences valued in the millions. Farmland, lots, multi-family properties, pre-construction, commercial, retail, industrial, and even entire islands.

How do I know if my property is right for auction?

The ideal seller for the auction method would be a motivated seller who wants to control the time table and terms of sale who owes less on the property than current market value.

Can I auction my property if I have a mortgage, liens, or taxes owed?

Yes, most sellers have a mortgage or other liens. Your liens will be paid at closing. Tower Auction Company.com will handle all settlement through a licensed title insurance closing company.

What type of real estate auctions are there?

You can sell your property as "absolute", "seller approved", "reserve", or with a "stated minimum bid."

What is absolute auction?

Property sold at absolute auction means that it is selling to the highest bidder regardless of price. There is no minimum, and the seller cannot reject the highest bid. This type of auction often produces the highest selling price.

What is a seller approval auction?

It means the property is being offered to the highest bidder, subject to the seller accepting or rejecting the bid.

What is a reserve auction?

This means there is a minimum acceptable bid the seller has set prior to the auction. The property cannot be sold unless this amount has been reached or exceeded.

What is a stated minimum bid auction?

This is an auction were the seller publishes a minimum acceptable bid prior to the auction and will sell the property at that price or higher.

How does Tower Auction Company.com get paid?

The buyer pays our commission in the form of a buyer's premium. The seller receives 100% of the highest bid. The seller is responsible for the marketing expenses.

What is a buyer's premium?

A buyer's premium is a percentage of the highest bid paid by the buyer. The total sale price will include the highest bid plus the buyer's premium. At closing the seller receives 100% of the highest bid.

How long does it take to sell real estate at auction? 

Sellers who use the auction method benefit greatly by going from initial agreement with us to marketing, auction and closing within 60 days. Tower Auction Company.com will market your property for 3 to 4 weeks before the auction, and all settlement and closing will take place in 30 days or less.

How will you market my property?

Tower Auction Company.com will bring over 15 years of real estate experience to promoting your property. Our extensive marketing plans include; signage, web listings, on-line bidding, emails campaigns to pre-selected auction buyers, faxes, and brochures. We run national, regional and local newspaper ads for three to four weeks prior to the auction date. Brochures are mailed to neighbors and local REALTORS®. Our powerful marketing campaigns create urgency and bring highly motivated and qualified buyers to compete for your property.

Where is the real estate auction held?

Usually real estate auctions are held at the property location.

Can I come to an auction just to watch? 

Absolutely, we encourage you to attend an auction and watch the bidding. You will be entertained and surprised at the interest an auction generates.

How do I know bidders are qualified to buy my property?

We use time tested proven methods to get serious bidders competing for your property. Bidders must meet criteria to register. (1) Valid identification, such as driver's license.  (2) Agree in writing to the terms and conditions of the Tower Auction Company.com auction. (3) Submit proof of funds. (4) Deposit of down payment in cash or certified check. (5) Successful bidder will sign a non-contingent purchase agreement agreeing to the sale price and closing within thirty days. If the buyer fails to comply he forfeits his down payment and agrees to pay a fee to re-market the property and all legal fees. It is extremely rare for a buyer to default.

Will I need to sign an agreement to sell my property at auction?

Yes, you will sign a real estate auction listing agreement provided by Tower Auction Company.com. An agreement will be made available upon request.

What paperwork will I need to sell my property?

Tower Auction Company.com will need copies of your identification; driver's license or state ID, deed, survey, tax ID number of property, and recent tax bill, and mortgage payoff amount.

Will bidders be able to view my property prior to auction?

Yes, we will offer free previews by appointment and conduct open houses prior to the auction. We strongly encourage bidders to examine the property before the auction date. We also make the property available two hours before auction time.

What can I expect on auction day? 

Tower Auction Company.com will provide a team of auction professionals. Cashier, security, bidders assistants; ringmen, all led by an experienced licensed auctioneer.

We will open the auction with the rules and terms of the auction, followed by a description of property to be sold. Once the auction begins we work with buyers to obtain the highest possible bid. Immediately after the auction contracts are signed, non-refundable down payment collected, and you are on you way to closing.

When and where does the closing take place? 

Your closing will be held at a licensed title company. Here the seller receives final payment less any liens, mortgages and buyer receives a warranty deed and title insurance for the property. This takes place within 30 days or less of the auction.

Is the closing any different than any other real estate closing?

No, the closing is the same. Once the price is agreed upon and contracts signed the closing is held in the customary manner for any transfer of ownership.

SELLING LUXURY REAL ESTATE AT AUCTION- Appreciation among luxury homes has slowed in many parts of the country and the number of available buyers has diminished. These conditions are leaving many luxury homes unsold.  And the cost of holding these properties can reach into the tens of thousands.

In the past year alone, the numbers of traditional listings have risen over 60% nationally and have exploded beyond 100% in markets like Florida, California, the Carolinas and the New England coast line. In this market distinguishing your luxury real estate offering from the competition is now more important than ever.

Using the neighborhood real estate agent and a local MLS full of available competing properties is only creating a buyers market, driving prices down and requiring sellers to meet costly buyer conditions and contingencies. Sellers of luxury properties are looking for a better way.

This is why many have turned to the auction method of marketing. In fact auctions have become the preferred method for selling unique properties and luxury homes, and why not? A properly conducted auction creates a unique selling position, separating your offer from all other competing properties.

A properly conducted real estate auction provides many other advantages to a seller. Only at auction does the seller pick the day the property is sold. Auctions also return control over the terms and conditions back to the seller; leaving no buyer contingencies to worry about, such as inspections, or financing.

Why wait around for one offer at a time and negotiate with a single buyer who demands thousands in seller concessions? A real estate auction brings together multiple buyers who compete for your property bidding the selling price upwards. At auction the buyer pays taxes, title, closing costs, and commissions saving the seller thousands in expenses.

How does the auctioneer accomplish this? Top real estate auction firms offer turn key marketing solutions. A comprehensive marketing package includes signage, video presentations, tv ads, web listings, on-line bidding, email campaigns, faxes, and brochures to neighbors and REALTORS®.

Because most buyers for homes in the 1.5 million and up range come from over 500 miles away, professional auctioneers will create intense regional, national, and sometimes international marketing campaigns, designed to generate the maximum interest culminating in a successful sale on auction day with no buyer contingencies.

For more information, contact Tower Auction Company at 317-333-6977, or by visiting them on the web at http://www.towerauctioncompany.com/ .

*Contact Information:

Douglas Hostetler

Tower Auction Company

3208 W. 16^th Street

Indianapolis, IN 46222

Phone: 317-333-6977

Email: info@towerauctioncompany.com

Web: http://www.towerauctioncompany.com/

*This article may be freely reprinted and redistributed as long as this paragraph remains intact.