Hi Ginny.  Not sure how your company is set up, but I can tell you that with Coldwell Banker the auction process is easy.  We have a department just for that, I turn it over, they still charge a fairly high percentage - 3 1/2 or 4% I believe, and I get a 25% referral.  I'm not sure I would mess with it myself, unless there were a lot of properties involved.

Your wrong about Auctions. It's not just "bottom feeders". Auctions can work wonders. Keep in mind alot of high end property is sold at auction. It is the one of the fastest growth areas in the auction industry. Billions of dollars of Real Estate sold at auction last yearin the USA.

I personally have sold my house at auction & other property for various sellers. We have had very good results. What you need to do is get the right auctioneer for the property.

Matt Smith

Unless it's an absolute auction, where highest bidder gets the property, you/the seller can always choose to keep the house unless the reserve is met. In other words, unless the bids reach a certain level, the house isn't sold. I've never sold a house at auction, although I've certainly attended enough of them. As Matt says, I think the auctioneer makes a huge difference, and also how much promotion you do/he does to get the word out there. Most people (like me) go to auctions hoping to get a great deal, sure, although I'm not sure I'd classify us as 'bottom-feeders', exactly...

I'm not sure about Florida but some States require a Auctioneer License to hold Auctions.

Yes, we had a lake home sell at Auction. 100s showed up and it went for top dollar. Unfortunately it was a goverment ceased property, I think from the DEA. Good luck!

REAL ESTATE AUCTION MARKETING ADVANTAGES

Seller Benefits

Never has to worry about selling too cheap

Offers the seller another option

Creates competition among buyers; auction price can exceed the price of a negotiated sale

An auction generates excitement and heightens buyer interest

Exposes the property to a large number of pre-qualified prospects

Requires that potential buyers pre-qualify for loans

Property is sold as is, where is and how is without contingencies

Accelerates sales; the property can sometimes be sold within three weeks of listing

Eliminates high seller carrying costs; (such as interest, taxes, maintenance)

Auction brings interested buyers to a point of decision; they must act now or lose an opportunity to purchase

Auction is a true market forum; the highest buyer pays the lowest price a seller will accept

A seller knows exactly when the property will sell

A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction (depending on auction type), and actively participates in the sale process

Auction reduces the time the property is on the market

Auction eliminates numerous and unscheduled showings

Auction takes the seller out of the negotiation process

Auction is an aggressive, advance marketing program that increases potential interest in and awareness of a property

Seller is able to obtain liquidity

Seller is able to move on to other investments and free up capital

REAL ESTATE AUCTION MARKETING ADVANTAGES

Buyer Benefits

Purchase property at fair market value

Never has to worry about paying too much

Eliminate sometimes long negotiation periods

Reduce time to purchase property

Gain confidence as they compete

Do not have to worry about contingencies because purchasing and closing dates are known

Feel better about a purchase; just knowing there is a contending bid just one increment under purchase price

Buyers know property owners are motivated to sell

Buyers know property owners sell at lowest price possible

Buyers can receive favorable financing

Buyers set their own purchase price

WOW Roger that is GREAT!

Now let's see the drawbacks.

Why wouldn't sellers just start going directly to auctioneers?

I took the liberty of forwarding you auction lead to Williams & Williams. They are a well respected national auction company that will provide you a terrific auction experience.

Hope it all works out!

Yea, how do we get paid?

[Norm sez]: Why wouldn't sellers just start going directly to auctioneers?

_______________________________

Someone call me on it if I'm wrong, but from the auctioneers I have talked to, the seller pays the entire commission out of pocket up front. Also, your house is not guaranteed to sell but you've just moved from a contingency (as when they hire us) to a prepay. So there's that risk. And the price is certainly not assured.

Thanks Candice.