Real Estate Auctions

With the ever changing real estate market a centuries old process of buying and selling has resurfaced and is expected to continue to grow.  Real estate auctions have become one of the most attractive ways to convey real estate in this most challenging of markets in decades.  But why are auctions becoming so popular and what do they have to offer buyers and sellers.

As published by the NAA (National Auctioneers Association) over $268 billion in sales were auction originated.  Auctions have become one of the fastest growing sectors of sales for most any type of property including agricultural, machinery, equipment and residential real estate.  Real Estate auctions have increased for the last six consecutive years and it is estimated that approximately $58.6 billion was sold in 2008 with an expected increase for 2009.

Most public opinion about real estate auctions are far from the real truth.  Auctions can offer selling conditions that are sometimes better than traditional real estate sales methods.  More and more property owners, lawyers and banks are seeing that an auction can be a valuable option and can lead to profitability.  There are a lot of advantages, some obvious and some not so obvious that are listed below.

• A quicker sale, most times a closing will take place in thirty to forty five days.
• There are no long drawn out negotiations and the property is selling at the true market value.
• The buyers are prepared to buy and the seller is prepared to sell creating buyer competition generating excitement and motivating buyers.
• Properties sell with no contingencies and there is no guesswork if the deal will close.
• A higher exposure sales approach, advertising campaigns using newspapers, television, radio, billboards and brochures.
• Many times promotions can produce a sale prior to auction day.
• Never have to worry about unscheduled showings, open houses are conducted prior to the auction date.

Real Estate auctions have been around a long time because they are an effective and efficient way to sell property.  They create an excitement because they bring together all the potential buyers of a property encouraging direct competition which most times will bring a higher price than traditional real estate methods.  While the seller enjoys a higher price the buyer can rest assured he paid no more than market value and in some cases may have purchased the property less than what was expected.  No matter if you are the buyer or seller auctions are entertaining and most people come back again and again.