Real Estate Auction Blog

You heard it from me first folks - a month ago I said that more and more conventional brokerages are adding auctions to their list of services.  Surf and Country(tm) out of Newport Beach CA annouced today that it's adding auctions to its residential real estate services. Mark Whitehead of Surf & Country is one of California's largest individual brokers.  This truly is going to catch on like wild fire and become more mainstream. How quickly that happens depends on how successful conventional brokerages integrate and execute on the auction marketing and processes. it's a different ball game out there!

http://biz.yahoo.com/prnews/060926/nytu085.html?.v=69

The below article announces a huge auction to be held in October - 25 properties worth apx $35M. The properties include commercial and residential: including an entire city block near the Bronx fish market, a former synogogue, embassy and restaurant  the auction company, David Maltz & Co, reports that his company has grown to an $80Million/year business in the real estate auction industry. Real estate auctions are the latest trend in accelerating the market value for real estate by providing Firm, Time Defined sale via competitive bidding.

AuctionFirst specializes in real estate auctions in Texas, North Carolina and is licensed in Virigina, DC and Maryland. 

http://retail.press-world.com/v/72853/david-r-maltz-co-inc-announces-major-multi-property-real-estate-auction-oct-26-2006.html

A real estate auction in Charlotte NC had 35 properties from 3 investors.  The investors approached real estate auctioneer Gail Marshall of Auctions by Marshal about conducting an auction. All in good condition, but not perfect. One is on a street where 2 homicides occurred last week. (Auctions are a great way to liquidate a property with negative history since the terms are as-is/where is, no contingencies. Below is a link to article about the Charlotte NC auction.

http://www.news14charlotte.com/content/local_news/?AC=&ArID=127190&SecID=2

Real estate auctions are an excellent exit strategy for investors.  Investors who are flippers normally have a very short lead time to turn around the sale of the property.  Investors who hole properties often times prefer to liquidate their holdings in one go. Either way, real estate auctions allow owners to set the date for the sale.  If you're a member of a real estate investment group - you may want to contact a local real estate auctioneer to speak to your club about real estate auctions. It may also be something that your club puts together a multi-parcel auction for all members (and non-members).

This article (link below) was published in the St Petersberg Times yesterday - and provides a great perspective on the market and real estate auctions. One Clearwater auctioneer said he used to get 10 calls a week last year - and now averages 10-15 calls per day now. They're closing almost everything that they take (apx 15 / month).

The article points out that in a Buyers market - sellers don't always get what they wanted - but they would not have gotten their price thru regular conventional process either. 

http://sptimes.com/2006/09/22/Tampabay/Finally_sold_Well__ma.shtml

Has anyone else seen this informercial from Homevestsors (aka we buy ugly houses)?  It was a 30 minute infomercial on a major network - that aired Saturday morning. I thought the ad was extremely well done and had a compelling message - we take care of your ugly house problems.  If you've seen the infomercial - what are your thoughts on it?

My company, AuctionFirst, hopes to get these clients that need help with an ugly house problem in advance of Homevestors - we'd rather help the homeowner keep their equity. Because an auction is date driven - the homeowner can control the timeline. The investors (including Homevestor folks) show up to the auction, but they have to compete against each other and all other buyers including end users/folks that plan to live in the house.

This is an excellent designation for any real estate professional/broker who wants more understanding of real estate auctions and perhaps even to put auctions into their service offerings: 

An auctioneer with the AARE designation has gone the 'extra mile' to ensure they offer the highest level of professionalism and the most up-to-date information when it comes to selling properties. Whether selling residential, agricultural, commercial or industrial properties, AARE auctioneers have enhanced knowledge in all pertinent areas, such as:

• Marketing techniques
• Financial/investment calculations
• Evaluating cash flow
• Holding-period analysis
• Tax consequences of buying and selling properties
• Multi-parcel real estate auctions

The AARE auctioneer has successfully completed three (3) classes in order to gain the designation, and must maintain it with continuing education. Within three (3) years of attending AARE 300, submit:

• Auction summary report that is reviewed and accepted by your instructor
• AARE application
• Proof of 10 real estate auctions

Applications & class information is available at www.Auctioneers.org - click on auction education