The auction method is a just a small, inconsequential niche of the real estate market.
According to the National Auctioneers Association (NAA), gross residential real estate auction sales were almost $58.5 BILLION in 2007 and are the fastest growing segment of the real estate industry growing 46.6% between 2003 aand 2007. The NAA predicts 30% of homes in the US will be sold via auction by 2010. NOTE: in Australia and New Zealand auctions are by far the most common way to sell real estate - in North America auctions are the fastest growing method of sale for high-end unique and luxury estates.
Real estate auctions are they are only suited for distressed sellers.
There is nothing further from the truth. Sellers of all types of properties in the United States are increasingly looking into auction sales, even more so in the luxury estate segment, to effectively market and advertise their exclusive properties and capture maximum value. Due to the complex process of an auction sale listing most agents don’t attempt to design and execute this type of sale in the "traditional" real estate environment.
If the property sells for less than the seller hoped for, the seller has to accept the bid.
SURE offers two basic types of auctions; Absolute and Subject to Seller Confirmation (or Reserve). In an Absolute Auction, the property will be sold to the highest bidder. An absolute auction attracts an average of 30% more bidders for the simple fact that the buyers perceive that they will get a deal. In this type of program, SURE would front the marketing and advertising expenses and would be reimbursed at the close of escrow. However, in a Reserve Auction, an agreed minimum price point is set. If the bidding does not reach this price point, the seller is not obligated to accept the bid. In some cases we would not advertise the reserve price, though we may advertise an opening bid price. In a reserve auction, in most instances, the seller’s expense would be the advertising and the marketing costs.
An auction sale may not the best method to capture the best sales price for your property.
A typical listing starts at the highest price and waits for an offer when non come in it works its way down. In an auction it works the other way around: the price works its way up in a competitive environment.
If the property doesn't sell at an auction, it is extremely difficult to market and sell it subsequently.
On the extremely rare chance that a certain property doesn’t sell on or before auction day, our targeted real estate marketing techniques will have already exposed the property to a large segment of the buying public. There may be a buyer who wants the property but is uncomfortable with the process will make an offer after the auction date. In many cases offers to buy the property prior to the auction date are made and accepted. The real estate auction marketing method brings the latent buyers to the point of decision as there is a finite timetable if they wish to acquire the property.
Real estate Auction Companies are competition for real estate agents.
In fact, SURE welcomes and seeks cooperation with agents and brokers across the nation and will pay full commissions on referrals and sales. CLICK HERE for more info.
An auction is just a gimmick to attract buyers.
There are several reasons that auctions are more effective and attract far more potential buyers than a "traditional listing". First, just the use of the term "auction", and the auction language in our marketing material separates SURE auction-listed properties from all the others. We gain for more inquiries from our auction marketing efforts and thus more potential buyers. Second, the our depth of our grass-roots marketing plan far exceeds that of a traditional listing. Our ability to expose a property via print ads, direct mail, the Internet, an MLS Auction Listing, and other methods creates much more exposure than a property listed in a traditional manner. Third, the auction creates the "lure of a bargain" which induces far more potential buyers to take note of SURE's auction-listed properties. Fourth, come auction day, spirited bidding often yields a higher sales price then that of a traditional listing (it can create a scenario similar to one where multiple offers are placed on a property which allow us to achieve the highest possible sales price). Fifth, and perhaps most important, properly communicating with potential buyers of the auction process in the weeks ahead creates a sort of "psychological warfare" that induces buyers to the point of decision and act rather than "sitting on the fence".. Sixth, come auction day there is nothing as valuable as having an experienced Auctioneer conducting a LIVE AUCTION to obtain the highest possible sale price....NOTE all Auctioneers are NOT created equal. Our Auctioneer, Jim Gall, has almost 30 years of auction experience and specializes in luxury real estates - he has sold over 16,000 properties via auction and knows how to press for the highest possible price for your property on auction day.
My traditional real estate agent can do my auction listing for me just as effectively.
It is imperative to have a team that is experienced in real estate auctions. There is no stronger auction partnership in the marketplace today that SURE & Auction Company of America. Together we have procured buyers for exclusive, multi-million dollar estates in San Diego County and across the country via the auction method.
SEE MISCONCEPTION #7.