Auction Listings – Coming Soon

WHAT IS A REAL ESTATE AUCTION?

A real estate auction is an innovative and effective method of selling real estate. It is an intense and accelerated real estate marketing  process that involves the public sale of property through open and competitive bidding.

A real estate auction is an effective way to achieve a sale in a specified time frame.

Although real estate auctions were typically regarded as a sales method of last resort for residential properties in distress, auctions can be beneficial for many types of real estate, including:

• New-home construction
• Luxury and vacation homes
• Agricultural land (farms, ranches, and orchards)
• Commercial real estate (shopping centers, apartment buildings, nursing homes)

Auctions can be an effective marketing tool in both strong and soft real  estate markets.

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Benefits of Real Estate Auctions

As a marketing strategy, the real estate auction provides a distinct array of benefits and advantages.

Benefits to the Seller

• High seller holding costs are eliminated.
• The seller sets the terms and conditions.
• The seller can be assured that the property will be sold at true market value.
• The seller knows when the property is expected to sell.
• The time to market is reduced.
• The requirement to have numerous open houses and property showings is reduced.
• The property is exposed to a large number of pre-qualified buyers.
• An auction creates competition among buyers.
• Buyers make a firm decision about the property.

Benefits to the Buyer

• The seller is motivated to sell.
• An auction reduces the time to purchase property, including negotiations.
• There are no contingencies because the terms are known.
• The buyer may receive favorable financing.
• Buying real estate at auction is an exciting method of purchase for many.
• Buyers compete fairly and on the same terms as other buyers.
• Buyers—not sellers, agents, or appraisers—determine the property's true market value.

Benefits to the Real Estate Agent

• Real estate agents can earn commissions by working with auction firms.
• Real estate agents can expand the services they offer to sellers and buyers.
• Real estate agents can supplement their current business by representing clients at real estate auctions; real estate agents also can develop a new market niche.
• A real estate auction can expose a property to many qualified buyers.
• Properties advertised through auction are sold within a relatively short period of time.
• Successful auctions can generate referrals and repeat business.

Comparing MLS Approved Auctions

	Absolute (AuctionABS)	Minimum Bid (AuctionMIN)	Non-Disclosed Reserve (AuctionNDR)
MLS List Price	Based on market value or assessed value.	Based on minimum bid $.	Based on market value or assessed value.
Description:	No minimum bid Guaranteed sale Property sold to highest bidder regardless of price	Lowest acceptable price is deter-mined beforehand Once bids reach minimum, Auctions then become Absolute	Seller may accept or reject highest bid
Advantages:	Attracts more lookers and buyers Heightened audience participation and excitement Typically yields a higher price	Safety net for seller	No obligation for seller to accept bid
Disadvantages:	No obligation for seller to accept bid	Minimum bid may interest a limited number of buyers Challenging to generate excitement	Can be hard to attract buyers