Yes Indeed. Sounds strange, but it's true.It isn't that I don't believe in auction as an aggressive and wonderful marketing tool for selling real estate, it's just that the market has changed and there are many reasons that auction won't work today.
The number one reason is competition from bank foreclosures and other REO properties. They offer great terms, and bargain prices. Unfortunately. most sellers look at auction as a last resort, and wait until the property is stale before putting it on the auction block!
Auctions are expensive and time consuming, and we are not in the business to lose money. Here's the key principle:
If a property won't sell for any reason. those reasons will not be overcome by auctioning the property! Auction isn't for properties that won't sell, it's for properties that everyone WANTS!
So if it's a house that has been sitting for six months, I won't touch it, unless you are VERT WILLING TO TAKE A LOW-BALL PRICE!
But any auctioneer will be glad to discuss auction with you, and it may be a viable option. We are always willing to "talk turkey" with sellers about the auction process!
 |
 |
 |
 |
|
Richard Weisser, Broker, Associate Broker,
Auctioneer, E-Pro, CE Instructor |
|
All content, including text, original art, photographs and images, is the exclusive property of Coweta Fayette Real Estate, Inc., and may not be used without the expressed written permission of Coweta Fayette Real Estate Better Homes and Gardens Metro Brokers, Newnan Georgia. All information is believed to be accurate but is not warranted, Copyright 2003-2009. Richard Weisser REOS, E-Pro. licensed Auctioneer. 770-827-6225.
Learn more about Coweta County and Fayette County Georgia Real Estate, and to search the entire Georgia MLS for free with no registration required. Visit CowetaFayetteRealEstate.com! Photos of the Great Smoky Mountains National Park. North Georgia Photos.
Richard:
Seems a lot of people like the IDEA of an auction, until they hear how they really work. The 10% buyer paid commission on top of the sales price is prohibitive and usually brings the ultimate sales price up to market value.
Eric...
Lordy lordy, I wish they would! That would be one SUCCESSFUL auction! Thx.
William...
I believe in telling it like it is! Thank you for commenting!
Chris...
You're right ... you need a property that can command a premium price, not a run of the mill home! Thanks
Richard,
How do you see auctions doing over the summer months? Do you ever do any auctions on Florida properties? We've just had a huge estate auction here, just wondering if you've heard about it.
Jan...
Auctions typically do better in the summer months. We are only licensed to Auction in GA, but we follow Auctions in the region and did take notice of the FL auctions!
Sandra...
You need a good auctioneer that will tell you specific chances of success at auction. I told a gentleman today he had a 1 in 4 chance of success at auction and he still wants to move forward. It is an informed decision on his part.
April...
Well thank you ... the link was indeed not working! I have corrected that now! I got into auction by accident! We started a company, hired an auctioneer, fired him, we were stuck without an auctioneer and I volunteered to go to school and get my auctioneer's license! I'll write all about it in a blog later today or tomorrow!
Edward...
Yes, we are seeing a lot a people seeking to get something for nothing! It's frustrating all right, but it's a part of where we are at in the market!
Richard:
Here in California, the auctions that come in do well. They are all bank driven. I think that auctions are very viable, if the seller is motivated.
L&L,
Right you are! If the seller can take the hit, and put out enough properties to get enough interest, it works! I am speaking here of non-institutional sellers who are unwilling to suffer possible losses. Thanks for your comments.