Those that follow me know that I have a significant background in the world of online auctions having worked in that realm for the past 12 years. Today I came upon some stats that proved the point that I have always maintained, "it just takes 2".
We all talk about short sales and the down economy and the housing bubble and all of the Negative Nancy things that we see today, but let's look at the positive. How do we get top dollar for our listings? The Aussies know how, they have been doing it for generations.
In one word: Auction
I was just reviewing some stats on a vehicle auction. It was a rare vehicle, but nonetheless a daily driver that had been restored. The bidding started at $1 though we all knew it wasn't going to sell for that little. The result was a vehicle that sold for over $150k. At $100k, there were still 6 bidders in. By $125k, 4 had dropped out. The last $30k+ came from a two-way battle for the prize.
No comps needed. No appraisals. No approvals. Top Dollar is guaranteed when the market bids for the final value of the item. In this case it was a car, but it easily could be a home. REDC knows this even though they don't want you to know they know. They make millions because realtors themselves haven't approached auctions with the same conviction that they use to approach all other forms of marketing.
I give a shameless plug to my friends over at BidonRealty.com who are just getting started providing a marketplace for realtors to auction listings. But even if you don't like their setup, there are a few others out there that let realtors do what realtors do and let software do the heavy lifting on the bidding activity.
Remember that it takes 2 bids to make an auction. Why sell it for less when an auction can bring you more?
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