Real Estate Auctions

Real Estate auctions are the rage nowadays because so many sellers have been unable to sell their real estate over the last three years.  The sellers come to the end of their rope and decide to try an auction.  There are many ways to sell a condo at an auction, and believe it or not, many times you walk away with a price that exceeds what you'd get in a normal real estate selling situation.

Real Estate auctions can be found by doing a google search or asking your local realtor.  There are normally two to three auctions a quarter in the Chicago area, about on a month. The real estate auction itself can be quite an event.  Many event coordinators will have food and entertainment to liven the environment.  The speaker has to be dynamic and able to run the event with precision and grace.  He or she must have the skills to draw more excitement to the bidding process.  There is no one more important than the auctioneer at the event.

The real estate auction depending on its size is usually a one day event but takes several months of preparation.  First the sellers decide what properties to put into the real estate auction.  There is a cost for advertising and a sales commission if the unit sells.  Normally a condo seller will pay a few thousand upfront to be put into the auction and a sales commission of about 6%. The buyer also pays a 5% premium price once the auction ends.  For instance, if a condo sells for $100,000, a fee of 5% is charges to the buyer so he actually pays 105,000 for the condo.

Did you ever hear of a real estate property selling absolute? This means that when the bidding begins, it will be sold at a price regardless of what the lowest bid might be.  In other words, a property could literally go for one dollar if this is all that was bid.  The key is showing up and being involved in auctions because there could be a deal of a lifetime in the bunch.  If it turns out that not a lot of people show up, you may find yourself bidding on properties solo.

Real estate auctions a re a great way to sell your product and you might actually sell it for more than you'd imagine.  The key is making sure you put it in an auction that will be heavy participated.