real estate online auction: Have you been watching Auction.com? - 05/17/12 04:02 AM

As most of you know, I always have an eye on REDC (Auction.com). They are the undisputed leader for real estate auctions and especially with their "online only" auctions.  I haven't found any other company that comes close to the volume of sales they do. REDC is still selling primarily bank owned real estate but I've noticed 3 new variations show up in the last couple of months.
Short sales - They now have auctions for properties where the lender is willing to take a "short" on the amount owed in order to avoid foreclosing.  This is a great use … (1 comments)

real estate online auction: Are bank properties worth the risk? - 03/08/12 03:37 AM

A couple of weeks ago, while teaching a real estate online auction class in Mankato, MN, I met a successful auctioneer from Chicago who has been in the business for over 20 years.  He does FDIC auctions of personal property as well as real estate auctions. He shared a story with me about his first opportunity to auction a group of 100 bank owned homes in the Chicago area.  The bank would not give him a penny for marketing/advertising and ALL of the properties would be sold with reserves. He knew the auction would require at least $100,000 in marketing … (3 comments)

real estate online auction: Highest and Best - Does anyone win? - 02/06/12 01:31 PM

This past week I submitted written offers for 2 different buyers on REO properties and was told by the listing agents that they received multiple offers.  They then asked for my buyers "highest and best". When this happens, my buyers always ask if I think there are truly multiple offers or just a game the banks are playing.  I sincerely believe the listing agents are being honest, but it's hard for buyers not to be skeptical. I advise my buyers to submit what they are willing to pay, and not get emotionally attached.  It's a numbers game for them anyway. … (4 comments)

real estate online auction: Online only offers for REO properties - it's happening! - 01/09/12 03:24 AM

7 years ago when we created our online real estate auction system, I expected a much larger adoption by the asset managers at the banks to use the auction process to sell their REO (Real Estate Owned) properties (i.e. foreclosures). Today, several asset managers do use auction companies such as REDC, Hudson & Marshall, Williams & Williams, etc to move some of their inventory.  However, the majority of the REO inventory is still being sold through the MLS. Well, last week, I got really excited because I came across some REO agents in my market that are making a change. … (2 comments)

real estate online auction: How many price reductions does it take? - 12/05/11 07:24 AM
  The most common way to sell real estate in the U.S. is by listing it in MLS and then, if it doesn't get any interest, begin to drop the price until a buyer makes an acceptable offer (see above). Most real estate agents don't realize that this method of selling is actually a type of auction.  It's called a dutch auction, just done very slowly.By definition in Wikipedia, a Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.So, since real … (3 comments)

real estate online auction: Have you been involved in HUD sealed bid auctions? - 10/06/11 03:49 AM

Last month, I sold my first house as buyer agent for a buyer of a HUD property in my area of St. Louis, MO
  HUD homes in St. Louis are sold through an online "sealed bid" process and in case you're not familiar with it or it's different in your area, I thought I'd share some observations of the process.   1. There are no pre-qualifications for bidding, but only HUD registered agents can place bids for their buyers. Before you place a bid, you need to make sure your buyer can close. 2. Owner-Occupants have the first opportunity … (1 comments)

real estate online auction: An Online Auction Creates 3 Opporunities to Sell - 08/31/11 04:08 AM
  When I use an online auction to sell a property, I use a strategy that creates 3 opportunities to get a property under contract during the process. Here are the opportunities...
1st opportunity (Pre-bidding): Instead of letting people bid on the property as soon as it goes online, you can advertise it in a "preview" mode before bidding opens. By having it in "preview" mode for 7-10 days before opening the bidding, you create the urgency for buyers to submit a written offer and get it under contract so they don't have to compete. The seller can accept a pre-bidding … (0 comments)

real estate online auction: Still using slow dutch auctions to sell your listings? - 07/26/11 07:11 AM
Currently, the most common way to sell real estate in the U.S. is by listing it in MLS and then continuing to drop the price until a buyer makes an acceptable offer (see above). Most real estate agents don't realize this is an auction, a dutch auction - just done very slowly.By definition in Wikipedia, a Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price.Since you're already doing a type of auction, why not try a traditional auction where you open … (1 comments)

real estate online auction: Do buyers overpay at auctions? - 06/29/11 06:33 AM

Last week, I took a buyer to a local "Williams & Williams" auction where they were selling 4 properties. The auction was done live on the front lawn of one of the properties and buyers could also participate online.
If you haven't seen Williams & Williams auctions, check out their Auction Network site which shows all the current auctions they are running. I think they do a nice job.
We were both surprised at the prices each of these properties received. My buyer is a well seasoned investor and we did our research to know the right price to pay … (0 comments)

real estate online auction: Are the banks getting more motivated? - 05/19/11 07:17 AM

Last week, I took a buyer into a couple of bank owned "REO" properties that just came on the market. In the past, these type of properties were initially listed too high so we would wait until a property sat a while and had several price reductions.
Now it seems, that some banks have changed their strategy and are being much more aggressive with their initial listing price.
In the couple we looked at, they were priced very fair and close to "wholesale/investor" pricing. I wasn't surprised to find out they received multiple offers and I'm sure they will get … (0 comments)

real estate online auction: What are the banks thinking? - 04/14/11 07:35 AM

Last week, I took a buyer into a bank owned "REO" property where the bank decided to have a company come in and rehab the inside (paint, carpet, new appliances and flooring bathrooms and kitchen). You can tell they took the lowest bid for the work because the work is okay but very little attention to detail.
The property was priced right and I was sure it would go fast. My buyer is an investor so he was only interested at a price where he could "finish" the details and really make it shine (about 30% off their list price).
… (2 comments)

real estate online auction: Are you getting the best price for your REO listings? - 03/09/11 03:34 AM

At the end of January, I attended a Hudson & Marshall "live" auction in St. Louis with a buyer client of mine.
In case you haven't seen a Hudson & Marshall auction, they do a very nice job. You can check out their upcoming auctions at their website HudsonandMarshall.com
The auction was for 57 homes around the St. Louis area. The 2 properties he was interested in were at the end of the list so we observed for about an hour before he got to bid.
It started out with about 125 people but when we got to his … (0 comments)

real estate online auction: It's mostly about the marketing! - 02/09/11 02:39 AM

Last month, I shared some ideas on helping buyers be more comfortable bidding online.
Since then, I held a 7-day online auction for a property in St. Louis and thought you might be interested in the results.
First, despite the winter weather conditions, it was very successful getting buyers into the house. The house was a bank foreclosure so it had no heat and with temperatures in the 20's and 4 inches of snow, the house felt colder inside than it was out.
I held 3 open house previews Friday, Saturday & Sunday but only for 1 hour each (I … (0 comments)

real estate online auction: Have we hit the bottom? - 01/13/11 03:48 AM

Last month, I shared how I've found some "hidden" deals for buyers in my St. Louis market on Auction.com (REDC auction company)
I'm still finding them, and the reason they are "hidden" is because of the lack of coordination and communication between the local listing agent and REDC. A big opportunity for the local listing agent who takes ownership of the process and does the online auction themselves.
In addition, I've been contacted by at least 2 buyers a week wanting to know where to find the "deals".  I think it's because the word is starting to get out in … (1 comments)

real estate online auction: Do buyers bid online for real estate? - 12/15/10 06:54 AM

I get this question a lot. ..
Do buyers bid online for real estate?
The answer is yes and it's becoming more and more common.
As you probably know 90%+ of buyers are already finding their homes on the Internet, so it's a natural next step to negotiate with all interested buyers simultaneously online.
As a listing agent, an online auction is just a different marketing strategy.
They naturally attract more buyers and help a property stand out better, but they do take a planned marketing effort.
Interested in learning more? Join our next online real estate auction training session.
… (4 comments)

real estate online auction: REDC Auction.com - Are you watching? - 10/27/10 09:45 AM

 
A couple of weeks ago I noticed a new sign in the front yard of an REO property I was showing from real estate auction company REDC - website Auction.com
I called the listing agent and found out that the bank that owned the property had turned it over to REDC to sell through their online auction process.
Whether on purpose or just too much going on, the listing agent never updated the MLS information and since this property was at the end of a cul-du-sac I think very few people knew about the auction.
In addition, the payout … (7 comments)

real estate online auction: Lighting a fire under the buyer! - 09/30/10 11:49 AM

A couple of weeks ago, I was working with a real estate agent on her first online auction.
The seller was a widow who had equity in her home, but could no longer keep up with the payments or the size of the home. The house had been listed for 6 months with no offers.
They wanted to try something new, something to get attention and motivate buyers to make offers so I helped them market it through an online auction.
We put up signs, mailed post cards to the neighbors and put up fliers in the local businesses.
The … (1 comments)

real estate online auction: Online Auctions - Not for the lazy Realtor - 09/16/10 07:52 AM

This past week I was teaching a class of auctioneers & real estate agents how online auctions work, some advantages & disadvantages, etc.
While there are a lot of efficiencies gained by using an online auction vs. a live "on-site" auction, the class observed that an online auction still requires more effort than most Realtors give when marketing one of their listings.
I agree, there is more effort involved, but not much more, which leaves a HUGE opportunity for progressive agents willing to put in that effort.
Interestingly enough, all the agents I'm currently working with have sellers so excited … (0 comments)

real estate online auction: An online auction gives you 3 ways to sell - 08/26/10 08:43 AM

One of the many benefits of using an online real estate auction to market a property is that it gives you 3 ways to sell the property during the process.
1st way (Pre-bidding): Instead of letting people bid on the property as soon as it goes online, you can advertise it in a "preview" mode before bidding opens. By having it in "preview" mode for 7-10 days before opening the bidding, you create the urgency for buyers to submit a written offer and get it under contract so they don't have to compete. The seller can accept a pre-bidding offer … (1 comments)

real estate online auction: Why would I do an online auction? - 08/18/10 09:11 AM
"Why would I do an online auction?" - I get this question a lot from real estate agents who are not familiar with using online auctions to market and sell their clients property.
Here are the top 10 reasons....
10) Nobody's been through the property in weeks.
9) You're tired of the seller complaining that you are NOT "doing anything".
8) The seller has moved out and is making 2 house payments.
7) The seller is facing foreclosure and needs an offer for a short sale.
6) Your seller insists you keep doing open houses EVERY weekend.
5) You want to … (0 comments)