What are the advantages of selling my property by auction?

·               Saves money.................................. Seller pays for marketing; buyer pays commissions.

·               Saves time....................................... Marketing: 3-5 weeks; then closing within 30 days.

·               Local and online exposure........... Accelerated marketing brings in local & out-of-area buyers.

·               Creates urgency for buyers.......... Buy now or lose the opportunity.

·               Pre-qualified buyers...................... No financing contingencies! Buyers come ready to buy. An auction is a cash sale.

·               Spotlights your property................ High intensity local & online exposure via accelerated marketing program

·               Get top dollar................................... Auction leaves no money on the table!

·               No need to fix it up......................... Property sells “AS IS.”

Why should I sell my property by auction?

·               It’s simple......................................... This is not rocket science.

·               It’s fast............................................... 4-6 weeks marketing time before auction, then closing within 30 days.

·               It’s convenient................................. No unscheduled showings. No negotiations.

·               It’s final............................................. No contingencies on the sale.

·               It’s fun!.............................................. Check it out! Attend a real estate auction as an observer. Auction means ACTION!

At a pre-auction open house I was speaking with a real estate investor about what was going on regarding real estate in the neighborhood. She finally blurted out: Why don't the sellers just disclose what the reserve price is and save us a lot of time and trouble?

In reply I asked if she knew what the reserve amount for the house across the street is. (It had been on MLS for over 120 days and, after 2 price reductions, it was now listed at $589,000.) In other words, what is the lowest amount that seller will accept to sell their house?

You don't know. Would you ask the seller across the street to simply make their true reserve amount the actual listing price on the MLS? No. You wouldn't take such a stance because everyone is entitled to their share of profit (or loss) without needing to disclose the actual amount of profit (or loss) in the offing. That's the nature of commerce. So why would the sales scenario for a real estate reserve auction be any different? It isn't. The reserve price is undisclosed.

With a reserve auction the seller has a publicly undisclosed minimum amount - aka the reserve price - which s/he hopes to achieve at auction. After the bidding reaches a certain threshold, the property being auctioned will sell subject to confirmation of the seller, generally on the spot during the auction, or within the next day or two. The seller may accept the highest bid attained via auction whether it's higher or lower than the undisclosed reserve price. The seller also reserves the right to reject the price achieved at auction as well as the right to counteroffer the highest bid.

A reserve auction for real estate puts a lot of power and control into the hands of the seller. Sometimes too much power. Unwitting, talkative sellers sabotage their own auction and drive bidders away by proclaiming to all and sundry that they won't be taking a dime less than $___ on auction day.

What the seller cannot control is the price a willing buyer will pay for that property on any particular day. This is what auctioneers call the true market value of the property being sold.

As a rule only the seller and the auctioneer know what the reserve price is. Although this could be a source of frustration to potential buyers, it shouldn't be.

Because the reserve price is undisclosed, this can actually work to the benefit of the auction buyer, especially when the high bid falls short of the seller's predetermined reserve amount. Why? Because the seller has the option of accepting the high bid regardless of the undisclosed reserve price.

Whenever I describe the auction method of marketing to a property owner or a real estate agent, new pathways of thinking about selling real estate begin to develop and invariably the excited comment is made: "The thought of voluntarily selling my home by auction never occurred to me. I always thought auction was for distressed properties or homes in foreclosure."

Despite the fact that few real estate training courses cover auction as a viable sales tool, a real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated and aggressive real estate marketing process that involves the public sale of any property -- most certainly including those that are NOT distressed -- through open, competitive bidding. According to the National Association of REALTORS®, under the right circumstances, auction can be the most effective way to accelerate property sales and establish a property's true market value.

When considering auction as a marketing method for selling your property, contact an auctioneer who is a licensed real estate professional and discuss your options. You have many, many choices to make because, as a seller at auction, you are in control of the selling process from the very beginning. Your input and decision as a seller are required for establishing the auction type, the dates of sale and closing, event location, terms & conditions of sale, marketing venues, and more.

Make the decision and stick to it.

I love this quote about the power of commitment:

Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative (and creation), there is one elementary truth the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then Providence moves too. A whole stream of events issues from the decision, raising in one's favor all manner of unforeseen incidents, meetings and material assistance, which no man could have dreamt would have come his way. I learned a deep respect for one of Goethe's couplets:

         Whatever you can do or dream you can, begin it.

         Boldness has genius, power and magic in it!

-- W. H. Murray, The Scottish Himalayan Expedition (J. M. Dent & Sons Ltd., 1951)

Have you ever found yourself moving down a path in uncharted territory? Everything is new: exciting! And everything is new: scary! It takes courage and a sense of possibility to boldly go down the less trodden path. Once you've done your preliminary research about real estate auctions, make your decision and stay with it. As indicated in the quote above, all sorts of "genius, power and magic" within the creative process will begin to unfold because of your boldness. Go for it! The adventure awaits your decision.