More Sellers Opt for Auctions
November 3, 2011
Home auctions are on the rise: According to PropertyAuction.com, a real estate auction Web site, from January to September of 2011 there have been 96,388 residential auctions posted on its site. Compared to last year’s 50,412home auctionsduring the same time frame, that’s a 48 percent increase.
“As housing prices continue to drop and mortgage foreclosures reach staggering levels, public auctions around the country are luring investors and first-time home buyers looking for bargains, according to auctioneers, real estate brokers, and home buyers,” RealtyTrac.com reports.
Moreover, the belief that only distressed properties top the auction block no longer seems to be the case. Many sellers looking for a quick and possibly profitable sale of their homes are seeing the upside of going the auction route rather than competing with the overloaded inventory of homes on the traditional market. Sellers are aware that first-time home buyers and property investors are currently hunting in droves for a good deal.
Some advantages of property auctions include:
- A property is put in the spotlight on a specific date and time rather than being “just another listing” among thousands.
- An accelerated marketing campaign, creating a unique curiosity and sense of urgency in buyers and investors due to the very small window of time the home will be on the auction block.
- Competitive bidding, which can drive up the price of the sale.
- A quick close, particularly for distressed properties.
And real estate companies are getting into the game. “Not only are auction transactions trending upward, but new players are entering the auction business,” RealtyTrac says. “Real estate companies are now getting into the auction business, competing with traditional auction firms ... Sotheby’s, Prudential, Coldwell Banker, and other real estate brokerages are launching real estate auction divisions to tap into this ever-growing sector.”
Source: PropertyAuction.com (Nov. 3, 2011)
Updated: June 20, 2018