By DeeinAustin™
I received a notice yesterday that Austin's Home Auction Live! website launched. You may not realize that home auctions are one of the fastest-growing businesses in this national housing climate.
Increased foreclosures and luxury home inventory are the top real estate sales at auctions.
Have a home that won't sell? Need to get rid of land or home inventory? Have equity, but no time to go through the real estate sales process? A real estate auction may be right for you.
Even better, the process is actually quite simple.
HOW THE REAL ESTATE AUCTION PROCESS WORKS
1. You or your real agent will contact the real estate auction website or auctioneer. You will need to have equity because you will sell at a discount.
2. The auctioneer will gather all details of your home. Some auctioneers will research and produce a marketing plan for the home if it's an upper-tier.
3. The potential buyers will inspect the property 7-14 days prior to the auction, so you need to provide full access or risk losing money at the auction.
4. Auction Day! If the home is listed with an agent or broker, they will usually need to be in attendance. Same thing goes for a buyer's agent.
WHAT CAN YOU BUY OR SELL AT A REAL ESTATE AUCTION?
You can buy or sell most types of real estate at an auction. If you have a buyer or seller's agent, they can get paid through selling your home at Home Auction Live!
- Single Family Homes
- Duplexes
- Condos or Townhomes
- Lots and Land
- Commercial Property
Benefits to the buyer is that they will most likely buy at least 10-15% below market from motivated sellers. Benefit to the seller is that they bypass unqualified buyers from traditional real estate marketing.
The first auction through Home Auction Live! takes place in March. I invited the founder to write an article on the auction process and additional pros and cons.
At least one Con that I found was that auction fees can outweigh that of a traditional real estate sale.
SEE THESE LINKS FOR MORE INFO ABOUT HOME AUCTIONS
-
Austin's new Home Auction Live!
National Association of Realtors weigh in on Home Auctions.
- Grand Estates national luxury home auction website.
Thank you, Dee! We're very excited about the launch of Home Auction Live! and have 20+ listings for the first auction on March 1st. Please call 512-444-7799 or visit us at www.homeauctionlive.com - we expect the full list of March 1st properties to be on the website on Sunday of this week.
Posted by: Robert Grunnah | Thursday, February 14, 2008 at 03:14 PM
I think auctions definitely have a purpose, but the main issue is how much traffic you can generate. As long as you advertise well, you'll have enough interested buyers. If there's enough buyers, it's worth the seller's time. If not, they lose severely at auctions.
Someone can correct me if I'm wrong.
Posted by: Dee Copeland | Friday, February 15, 2008 at 03:18 AM
Agree - it's all about the marketing. Auctions provide an accelerated marketing value proposition to sellers along with a no-contingency sales contract that usually closes within 30 days after the auction. For buyers, it allows a transparent and easy way to buy without overpaying. No longer set by a seller's arbitrary asking price, the buyer orchestrates the deal.
I educate realtors/brokers and others throughout the United States on the fundamentals of voluntary real estate auctions. Next Austin class is coming up on Thursday February 28. Registration is on www.edzing.com. It's TREC approved and will offer 4 hours MCE. This is definitely a tool/service that more brokers and agents should become familiar with.
Posted by: Linda Mardi | Saturday, February 16, 2008 at 07:53 AM
i am tyring to buy a house next door to mine that is foreclosed and up for auction however, i have no idea of how to find out how to get in on the process. can you help or point me in the right direction?
Posted by: matt watson | Tuesday, August 05, 2008 at 10:18 PM