Home > Blogs > Marianne Zoll > Marianne's Blog

Tell me about Real Estate Auction

By Marianne Zoll

Services for Real Estate Pros with Auctions By Zoll

April 29, 2007 04:21 PM

Real estate auctions have been around for years. They are not new. They are popular with the current market right now.

Why?

THey make a market where there is no market.

How?

When other homes are sitting on the market, buyers can look at 30-40 homes before they select one. With auction, advertising and a dale ate time creates the market. Several qualified buyers, from the local area and around the world with internet (proxibid) bidding are assembled. Buyers make several bids or offers all at the same time. They are not embarrased to make a low offer, where with a regular traditional real estate listing, buyers are embarrassed to make an low offer. They don't want to offer and the seller.

In traditional real estate you start at one price and can only go down. With an auction you start at a low price and have no where to go but up.

How much will it cost me and what are the fees?

The seller does not pay commision or closing costs. This means that the seller can offer the home for a lower price and still net the same amount of money. Closing costs are also payed by the buyer.

If you know that your home will sell and be closed on an exact date, you can calculate the carrying costs, taxes and insurance. If you know that you can estimate these costs, you are able to accept a little bit less. We can't predict the market, but we can predict a time and date that the home is going to sell. If you are building a home or you have 2 homes, it would benifit a seller to know that he can get his property sold.

What do I pay for?

The seller is charged 1.5% of the appraised value upfront for marketing of the property. A title search for clear title, a whole house inspection and a pest inspection. Another thing that is very important is a professional i from a senior certified appraiser. An appraisal is done for a sale in 30 days. This is very important for a snap shot view of the current market. Homeowners that have had their home on the market, or started building 2 years ago, still think that they can get that kind of price for their home. Sellers have to be realistic about what they can get for their home. The market is the market and the sale price of the home will depend on the current market price. 97% of the homes sell at the current market value, minus the commission and the carrying costs.

Why chase the market, get ahead of the market and get the current price. The best price for a home is one that sells in 30 days. If you auction your home, it will sell in 30 days and close in 30 days. No contingencies on financing or inspections. " The home sells as is, where is". That is such a relief to know you don't have 2 house payments.

How can I find out more about auctioning?

Call The Zoll Real Estate & Auction Company

Reid & Marianne Zoll 941-685-8808 or Toll Free 1-866-605-7827 or visit

http://www.auctionsbyzoll.com/

Comments(4)

Comment

Show All Comments

Sort:

Mary Pope-Handy

Christie's International Real Estate Sereno - Los Gatos, CA

CRS, CIPS, ABR, SRES, Silicon Valley

I have been a full time Realtor for 14 years and only this month found a listed property that was going by auction. I have never run into it in my practice before.

What is the amount offered to the buyer's agent? What I saw on the listing was a strange formula that I didn't understand.

If the co-op is low, it will cut down on traffic, etc etc....

Aside from lower commissions, what is the advantage of an auction?

Apr 29, 2007 04:27 PM

Joan Snodgrass

Midamerica Referral Network - Kimberling City, MO

I too have the question: How does a Realtor get paid from an auction transaction? Can you be a Buyer's rep for a county sale or an IRS sale?

Appreciate your post, but need more education.

Apr 29, 2007 04:43 PM

Marianne Zoll

Auctions By Zoll - Sarasota, FL

Mary Pope-Handy, ABR, CRS, ePRO, SRES

To answer your 1st question Mary. In my auctions buyers agents always get paid. They get paid on a sliding scale. If you just register your client you get 1%. If your buyer gives an opening bid of 50% of the hammer price(final price, before adding buyers premium) the buyers agent will get 2%. If the buyer gives an opening bid of 70% or more the agent gets 3%. If you encourage your buyer to make a 70% of the hammer price, sometimes no one will out bid the buyer. Just think. That is 30% lower than appraised value. That in it self is a steal. Sometimes the very serious buyer wins out, just by making a serious bid.

I love realtors, and I really want them to be part of the real estate auctions. Real estate auctions are really for realtors, not auctioneers. They know about property and understand it.

If a realtor brings me a property to auction, they get 25% of the 10% net proceeds. All you have to do is introduce me to the seller, and help me qualify them to make sure they are a canidate for auction. I do the rest. All you have to do is pick up your check at closing. I can even send you the check,

Your second question was what are the benifits of auction.

The seller doesn't pay any comission or closing costs. The property is sold immediately. You know what the carrying costs are so you can buget. Your listing gets sold, while all the other homes sit on the market. We make the market come to you. 45 days of extreme marketing.

You have a seller that is relieved that he has sold his home

Apr 30, 2007 03:20 PM

Yes you can be a buyers rep. In my auctions you just register your client 24 hours ahead of time and you will get paid on the sliding scale as I mentioned above.

I get the commission from the buyers premium, and the co-op agent is payed out of that.

I would be glad to answer more questions.

Of course you will get paid if you are a buyers rep. You must look at the terms and conditions of the auction. Every auction is different, but I am a realtor and I think it is important to honor Realtors. We need realtor's.

Apr 30, 2007 03:24 PM

Tell me about Real Estate Auction

Comments(4)

Marianne Zoll

Real Estate Resources

Recent Posts

Additional Information