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I may be the first to admit that not every property is meant to be booked for an Auction. Some in the auction industry believe differently and that is ok. If an Auctioneer can convince a Seller to offer their home for auction that was listed for 364 days at $395,000 but they "need" $375,000 to walk away. Go ahead. However, just as with traditional listing practices. I believe that THIS would qualify as a "bought" listing.
What is a "bought" listing in the Auction world? Pretty much the same as a Traditional Listing that was "bought". It's a listing that was accepted, knowing full well it would be difficult to sell, but was meant only to market yourself, fishing for buyers and sellers of other properties. Basically tying up the property at the Sellers expense and time hoping that a Buyer will come to the auction and bid.
I have witnessed this time and time again.....ads are placed....names are in the paper....but in the end, the Auctioneer ends up saying, "No Sale". I just witnessed this in Cokesbury Manor here in Harford County. 3 Homes in the $400,000 range that were listed with REALTORS were recently offered for auction. 20 people attended, all observers (including myself), No Qualified Bidders!. The second and 3rd. homes were supposed to be offered the same day and the sales were cancelled because lack of interest! I do not believe this was a huge black eye to the Auction industry as a whole however, it adds substance to my belief..."Find a reputable Real Estate Auctioneer with a track record of success!".
This is why you as a REALTOR have the obligation to your client to deal with a reputable Real Estate Auctioneer that may also be a REALTOR. Agents have understood for several years now that they will get the straight answers from me. Answers they and their clients need and deserve. I have walked away from 100's of properties that do not fit the criteria for an auction. I could have read my name in the paper 100's of times and maybe even have aquired listings by someone seeing my ads! But instead, I sleep well at night. Knowing I made the right choice for my company and my fellow REALTORS clients!
Because of my straight forward approach, I have been able to pay thousands and thousands of dollars to Real Estate Agents who chose to include the "Auction Method of Marketing" in their listing presentation. Instead of properties being withdrawn from the market by angry homeowners or allowing listings to expire from frustrated agents. The Auction Method just may be the best method.
If you are like many REALTORS and are frustrated by some of your properties in your listing portfolio, ask yourself, "Have I had the opportunity to mention the Auction Method to my client?". Is it because you are not familiar with the process OR not sure how your commission will be protected?
Before you let the listing Expire or be Withdrawn. Contact a Professional Real Estate Auctioneer. They will know how to qualify your clients property for the Auction Method. Auctioneers do not have magic wands they waive over your clients home and make their problems go away. We provide a very specific service....bring ALL Cash Buyers together at one place and time to bid competively against each other to achieve the FMV of the property on THAT DAY.
Add the Auction Method to YOUR listing presentation and become a true authority in your market!
Robert B. McArtor, REALTOR, Licensed AuctioneerRE/MAX Components - Fallston Certified Short Sale Agent
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.