Tuesday, March 17, 2009

The new wave - real estate auctions mean quicker sales

I am finally seeing a growing number of properties going to auction. Before you think I'm talking about abandoned, already foreclosed, or distressed properties, guess again.

Auctions are quickly becoming "in". They are not for problem properties, and thankfully, no longer limited to builders, developers, and banks. Individual sellers can do it. Considering that many listed homes are staying on the market for 3 months or longer, the prospect of having an auction for a home or investment property which needs to be sold being just 30 days away has taken on a whole new meaning. A fresh one.

If you have a home to sell, it no longer has to risk being on the market for month after month. As long as it is priced right. Bidders at most property auctions need to be pre-qualified and come with some money in hand. In other words, a potential buyer needs to show both money and some level of commitment before the auction even begins. Face it, that is not likely to happen between 1:00 and 4:00 on Sunday when your front door is loose in anticipation of visitors to an open house.

To me, the most appealing part of this (besides the faster sale) is the possibility of having more than one possible buyer bidding at the same time. The ability to cut into that vicious cycle of calling and running from one buyer to the seller and the other buyer to the seller and back to both buyers and the number of man hours that waste is most welcome.

Having that deadline of minutes or seconds where if a potential buyer doesn't bid right away he or she loses out is a blessing to the seller.

In this challenging marketplace, providing a faster option for motivated home sellers, regardless of mortgage or foreclosure status, is the best thing to come along in years. Personally, I worked on the "Open House Hotline" updates every week for 15 years. The whole idea is to get potential buyers to a property for sale. The possibility of going online or seeing the weekend Real Estate listing of definite auctions for this weekend means that sales will be made. Way better than an open house list where "lookers" can visit and wait three weeks before making a lowball offer.

On the right side you will see links to a couple of sites which provide more details. If you or your client needs to sell quickly, this is totally worth checking out.

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