Sellers Pay Attention:
Most people think that auction buyers are all investors, but that's not true. Seventy percent (70%) of the residential real estate that we sell at auction are bought by end users. Even in today's market, we see the end users buying at auction.
HOWEVER, the property always stands on its own at the end of the day. Real estate auctioneers specialize in accelerated marketing, have a big budget to work with, and target likely buyer pools. It's not unusual for an auction marketing plan to require 200 - 300 hours over 4 to 6 week period to execute the plan! Lots of work.
OK - that's all background information for this next part:
In today's Austin real estate market, buyers want ready-to-move-into upgraded/blinged out homes. It is easier to find an end user buyer for a really great home than it is to find for a fixer-upper. Buyers are willing to pay more if the home has more features, upgrades, bling, etc.
Case in point:
I recently auctioned a 5,000 sf executive home in an upscale neighborhood that sits on an awesome part of an award-winning golf course. We spent 4 weeks marketing the property aggressively. Many real estate agents work this subdivision. The market has slowed significantly, however there are still sales going on. Rate reductions - a bit. What I really saw during this marketing period is that buyers weren't looking for a "deal" as much as they are looking for their dream home with all of the bells and whistles. They are going to carry only one mortgage, live in one home - so they want that home to have everything ready to go. No fixing up.
I recently had lunch with a broker friend who works the SO-CO area. He confirmed that his nicer/prettier listings are selling much faster than his fixer-uppers or ugly properties.
If you are selling your home, this is good and bad news. Because the question is - how much $ do you put into getting your home ready to sell? I've always advised clients of a 2x1 rules. Spend only when you know that you'll get $2 back for every $1 you put in. But in today's market, you may need to spend that $1 in order to sell the property even if that means your $1 gets 50 cents. The fact is, that those improvement in today's market are your ticket to entry to sell. Make wise choices, consult or hire an expert to advise you on what needs to be done, stay away from too much personal taste, go with decisions that have more general and broad appeal.
Linda Mardi
AuctionFirst.com - Accelerated marketing of real estate thru auction.
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