Auctions are gaining more and more attention as listings languish and buyers are scarce.
It seems that opinions regarding auctions vary widely, almost as widely as the way in which they are conducted. Just as with traditional sales, auctions can be very effective or provide poor results.
Before agreeing to auction a property there are a few essential points that need to be understood and agreed upon so that an auction property has a real chance of selling. Ignoring the essentials greatly reduces the chance of a sale and further separates the potential that Realtors and Auctioneers have to provide clients with a successful outcome.
Understanding the essentials enables all parties to work together to achieve win-win results.
• Highly motivated seller
• Choosing absolute vs. reserve bid auctions (auctions often offer an inverse selling opportunity. Selling absolute always attracts the maximum number of bidders which often drives the high bid up)
• When possible, work one property at a time, avoiding the mega auction concept (with the exception of a REO portfolio type of Auction). Given the challenges that are faced to sell a property in this market, maximum attention and focus are required to build momentum and identify multiple bidders for a given property.
• Creating an intensive marketing campaign with ample exposure to the property to attract as many bidders as possible
• Encourage pre auction bids
• Reserve bids must be aggressively defined
• Setting realistic outcomes with sellers....the current market condition speaks for itself!
For more info please contact Troy Fowler @ 305.206 0349 or watch the free video at www.AuctionPresentation.com . He is a Lic. Real Estate Auctioneer (#AU3595, #AB2717, AARE, CES) & a Lic. Real Estate Broker. He is also president of Investor Realty & Auction Group.
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