Real Estate Auction Blog

10 Smart Reasons to  sell your Home using the competitive auction process: 

1. Seller-Friendly: You set the terms and conditions - you are in control of the process!

2. Competition brings a sales contract at fair market value.  When buyers compete, you win!

3. No contingencies in the contract for financing, inspections or repairs.

4. 30 day closing: You decide timing of the closing to suit your needs.

5. Controlled showings - This method brings all interested buyers together at the same time for property showings.

6. No repairs or staging is necessary.

7. Property is sold "as is, where is" and buyers do all of their due diligence up front, get their financing in order and inspect the property BEFORE the auction starts.  No haggling about repairs after the auction.

8. 10% NONREFUNDABLE deposit is collected from the buyer and contract is signed immediately after auction. 

9.  You can accept OR reject the auction results.  Your only risk is the upfront marketing expenses which are typically about 1%-2% of the property's value. For some seller's that's about as much as one or two months of holding costs.  You spend some money in order to SAVE money with a quick sale at top market value.

10. Your auction fee is completely reimbursed BY THE BUYER through what is called a Buyer's Premium.  We pay the commissions to cooperating realtors.

BONUS: Plus, your home is never taken off the market; preauction offers are possible.

AuctionFirst specializes in real estate auctions and can assist sellers and real estate professional nationwide.

Sold & Closed in 50 days! Pflugerville, TX - The job market in the greater Austin, Texas area has yet to completely revive from major layoffs in the technology field. Mark Najem had been out of work for several months before finding an exciting new job in Idaho. Now there was just the task of selling their lovely home in Pflugerville, an Austin suburb. In their neighborhood, homes were taking an average of 6-8 months or more to sell. Marc had seen his neighbor's home sit on the market for 18 months before selling and was very concerned about how long he'd have to pay the mortgage, utilities and insurance of the vacant house. "I was looking for an efficient way to sell my home. The market in my area is very soft for re-sale. Using the auction method would get the serious buyers to me. I also felt that I was in control of the process and my agent was really going to work for me rather than just treating me as another listing", Marc told us. Bidding at the live auction did not meet the confidential reserve. But the bids from interested buyers increased with a final contract signed just six days after the onsite auction. The buyers were able to close 2 weeks later, the same day that Marc's moving van left for his new home. "It was a very fast way to sell an existing home in a very soft market", Marc said. "It took me about 50 days to close the deal. This started with the signing of the listing agreement to the date all closing papers were signed. I also liked the no contingency (where-is/as-is) aspect of selling the home. Buyers knew they were going to buy the home in its current condition. In other words, I did not have to fool around with fixing stuff."

Mayo Auction and Realty, LLC reports a home run auction held on June 3rd. According to owner Robert Mayo, "it was amazing! We had 4 weeks to market the auction of a 1 acre 2 bedroom, 2.5 bath suburban home in Prairie Village KS. Our marketing plan included a mix of print, direct mail and internet advertising. The owner and I had agreed to use the strategy of an absolute auction to get the most attention and targeted a sales price of $350,000 as an outstanding result. On auction day, we had over 200 people in attendance with 33 registered bidders. The final sales price was $371,000! The sellers were thrilled." An "absolute" auction is where the seller has no reserve or minimum price and has agreed to take the final highest bid. Rob can be reached at www.auctionbymayo.com.

AuctionFirst and Mayo Auction and Realty LLC are both real estate auction firms and members of the National Association of Auctioneers.

More agents than ever are reporting that clients are asking about how auctions work. Pat Vredevoogd-Combs, President-elect of the National Association of Realtors, was recently quoted as saying she believes that consumers have greater comfort with auctions these days. The auction process can benefit real estate professionals too, she said. "In conjunction with a marketplace that is slowing down a bit in places. We're always looking for new ways of marketing property."

There's also an increase in brokerages forming alliances with auction firms or starting up their own auction divisions. Just this week, leading Philadelphia brokerage Prudential Fox & Roach announced an alliance formed with Sheldon Good & Company. Offices of Long & Foster, Keller Williams, Re-Max and Coldwell Banker have also formed auction alliances.

AuctionFirst offers brokerages the consulting services/expertise and outsource services to develop their own in-house auction divisions or to utilize AuctionFirst as it's outsource marketing partner.

AuctionFirst's president, Linda Mardi, was the featured guest on today's "Mortgage Show" with David McMillan on KJCE 1370AM Austin TX.

Linda described the auction process and seller benefits that includes getting a no-contingency contract at market value price within 30 days of the listing. She also described how AuctionFirst is realtor friendly and pays great (& fast) commission checks to referring and buyer agents.

All properties are great auction homes - but not all sellers are auction candidates. Many of AuctionFirst's clients", Linda explained, "are in a situtation where they have a time value of money and it's to their advantage to sell as quickly as possible."  The holding costs and risky market outlook don't outweigh

"Since the auction process involves agressively and proactively attracting buyers attention who compete on price alone, sellers are able to achieve a market value sale within a very short time frame. Plus, since the contracts have no contencies, these deals don't fall thru and typically close 30 days later."

AuctionFirst serves real estate owners thruout the country thru its vast network of real estate auctoineers. It's next najor auction event is in October when the company will hold a ballroom auction which it will sell a dozen or so properties at one time. Live simulcast internet bidding will be available by Proxibid.

AuctionFirst is a leading real estate auction company with offices in Austin Texas and Raleigh North Carolina.

Going once, going twice, GONE! Residential and commercial real estate auctions are growing at record pace. In fact, the National Association of Realtors is quoted as predicting that within seven years, one of every three homes in the USA will be sold by auction.  Forget the old stereotype of auctions only being for distressed properties or celebrity homes.  More and more sellers are discovering the benefits of accelerated marketing via an auction sale. Auctions work well in hot markets when there is already competition for a property because they ensure that no money is left on the table and bring a sales contract with no financing or inspection/repair contingencies that could be detrimental to a smooth closing.  Auctions also work well in slower markets because they bring fresh attention to a property that may have languished on the market. 

Read more of my other blogs for more detail of auction advantages.

How many of you have been an executor of an estate? I have a friend who was honored with the role 5 times in a single year. What do executors and heirs want from the real estate?  And they'd like to be as hands-off as possible. Fastest sale with highest possible price.  Because most estate homes have lots or all equity, there's little concern for having to cover liens.

Estate properties are frequently auctioned by absolute or without reserve (which usually attracts more bidders); and the auctoineer is also able to auction personal property. So, the auction company is a one-stop shop to get the most $ in the least amount of time. Everyone's happy.

Cheers,
Linda Mardi, AuctionFirst

This book is basically a FSBO approach to the auction concept. The homeowners follow a process outlined in Bill Effors book where they sell their home to the highest bidder in a round robin. http://www.5-day.com/.  The book and method were recently featured on CNN's "Open House".  Many of the 'market conditions' concepts in the book I agree with.  Big difference between the 5 day FSBO round robin and a professional real estate auction - other than experience, processes, etc - is that the 5 day approach is non-binding.

It's worth a look for real estate professionals to read this book.  Keep in mind that in many states, real estate agents cannot participate in an auction unless they are licensed by the state as an auctioneer.

Is anyone seeing these For Sale By Owner round robins taking place in their markets? They are usually advertised in the paper as "We are selling our house Sunday night to the highest offer above $X"

Cheers,
Linda, AuctionFirst

Because auctions represent a fair & transparant playing field for all buyers to compete on price alone. The seller has already set the terms and conditions. Buyers only need to compete on price.

Because auctions are date-drive sales, it's not an easy effort to re-do in the event that contingencies are not met - therefore, auction contracts contain no contingencies, excpet to guarantee passing clear title to the buyer.

Buyers must do their homework & due diligence in advance of the auction. Remember that auctions are very seller-friendly. Buyers opportunity is to bid on a property that might otherwise not have been available to them or to get a good deal.

Cheers,
Linda, AuctionFirst

Multi-parcel auctions are a method to level the playing field of all buyers - when  multiple lots/parcels/tracts/properties owned by the same seller, are being sold at one time.  Buyers will have different interests; some will want only one of the parcels, othes may want combinations and yet others may want the entire group of them.

This method is frequently used to maximize selling prices for acreage/raw land/farm land, etc.

It's complex to define or explain - and software programs are sold to track multi-parcel auctions - but here's a link to an auction site that provide a pretty good example with narrative.  http://www.hodgesauction.com/auctions/multiparsystem.htm

Cheers,
Linda