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 Instead of properties being withdrawn from the market by angry homeowners or allowing listings to expire from frustrated agents.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

Learn MORE About Short Sales in Maryland HERE

SELLING? Why Choose Me?..Learn More HERE

Direct: 443-392-4833
Office: 410-893-1199 Home: 410-879-0622
Fax: 410-638-7879

http://www.MySellingAgent.com/
http://www.MarylandHOMESTeam.com/
www.MDAuctionSales.com 

RE/MAX Website - http://www.robertmcartor.remaxagent.com/

View Robert B. McArtor's profile on LinkedIn

 

6 Comments on ADD "THE AUCTION METHOD" TO YOUR LISTING PRESENTATION AND BE AN AUTHORITY IN YOUR MARKET

AUG
08
2007
650,291 Points Localism Sponsor Outside Blog
Interesting concept.. but not one we have tried in our market.
1:58am • #1
167,648 Points 6 Featured Posts Outside Blog
Bob and Carolin - This market is perfect for auctions. When the market is saturated with homes, the Auction Method excites buyers and highlights the property above others in advertising. The anticipation for getting a good deal motivates.......
9:28pm • #2
AUG
09
2007

Robert,

Great information.  Yes, not all real estate is suited for auction.  I walk away from many and also convert many to traditional sales.  I try to never consider taking a real estate auction listing unless they have at least 20 percent equity and a minimum of 2 percent for up-front advertising.

I wish you continued success in the real estate auction industry.
3:43pm • #3
167,648 Points 6 Featured Posts Outside Blog
Mr. Hoffman, That is exactly why I love being an agent. Turning potential auctions into Traditional Listings and Vise Versa.
4:48pm • #4
1,361,685 Points 244 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Robert, a bought listing is bad no matter how it is done, and you are right about dealing with people who are honest and know what they are doing, to do other wise is the same as asking for trouble.

I have not heard much about Real Estate Auctions around here, but plan on finding out more about them after reading your blog.  Thanks. 
10:19pm • #5
AUG
13
2007

I met a seller last week that was convinced their home was going to sell at auction for a premium price.  I think we are going to sign it up as a traditional listing next week.  We are also working with a top producer to work auction listings into his tool box.

Some budgets are 1-2% of prospective sale price, but we have done many for less.  I think that is ending though.  The market the way it is requires more exposure and that takes dollars.

Now if could only get Hoffman to buy my auction business I would be on the way......
8:18pm • #6


What does the graphic say?
Leave a response…

(optional)
Spam Prevention:
 

Find MD real estate agents and Bel Air real estate on ActiveRain.