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Avoid Real Estate Auctions
By: Rich Haas
- Auctioneer - Real Estate Broker - Appraiser - President and Owner -

This article appeared recently in a real estate story in one of the local papers.

 Although the real estate sales market is overheated in some markets and cooled off in others, avoid real estate auctions where there will be other bidders for the real estate you want to buy. If you get into a bidding contest with one or more other buyers, the only winner will be the seller.

 Make any offer based on your knowledge on the real estate, its seller, and price. If another buyer at the auction outbids you, they probably overpaid.

 However, you might ask your real estate agent to tell the seller, “My buyers are also considering another home, so if they don’t accept the offer this time, they might buy the other home instead”.

 “That will create a reverse auction for the buyer where the seller “bids” to sell the house to you at your price”.

Our Comment:

 At Auction, you don’t have to lie to the seller………..

 

This article appeared in one of the trade papers

 Can’t Sell Home

House listed for 1 year

With three real estate firms

 Question: Our home, a gorgeous 4 bedroom, 3 bathrooms with a 3 car garage has been listed for over 1 year with 3 different real estate firms. Despite scores of open houses and showings, there have been no offers. We have already dropped the price $50,000. What do you suggest?

 Answer: Maybe you have had bad agents who are not effectively marketing your home in the local MLS (multiple listing service) newspaper ads, web sites, and net-working with other agents. The problem is that real estate agents are not really able do much more, other than to suggest to the buyers to make an offer which will be lower yet than the price you are now asking. If you are a motivated seller in this market, you can bite the bullet and slash your asking price more, or, better yet consider selling it at auction. Many people have learned that selling their real estate at auction is in many cases the best way to achieve market price or better for their property. It is much more aggressive than conventional real estate selling and you can name the day, time and place you want it sold.

 If you decide to offer you home for sale at auction, be sure that the real estate auctioneer you hire has been specifically trained to sell real estate at auction.   

 

Today’s Real Estate Auction Opportunity!!!  

During the past five years there has been a surge of new real estate agents into the market drawn by the surge in real estate activity because of low interest rates and cheap money. Because of this real estate prices became overly inflated and everyone was getting into the real estate business to make a fast buck. All you had to do to sell a piece of real estate was put out a sign and wait for the phone to ring. By the end of the day you had five people wanting to buy the property. In today’s market, as sales continue to slump, real estate agents will be dropping out of the current, outdated, conventional method of selling real estate by the thousands wondering why no one will buy the house that sold two years ago for $150,000 and today are asking $250,000

 

The real estate boom has reached the tipping point. Many economists are predicting a downturn of 30% to 50% from today’s inflated real estate prices. Unfortunately for many people buying and selling homes, it has been the opinion of many Real Estate Agents that real estate should be sold on the greater the fool theory. This simply means finding a fool who will pay more money than the person who bought it the last time as opposed to letting the real estate market operate on a free enterprise basis. Many homeowners are now in a crisis desperate to sell their real estate. In most cases, these people owe more on their property than it is worth. Lenders are starting to become more open minded as their inventory of foreclosed / abandoned real estate that no one is buying continues to grow in numbers and are very open minded to short sales. (Selling it at true market value and writing off the difference).

 

Because conventional real estate marketing will not work in this market, many people desperate to sell their property will be looking for another option. The coming years will be banner years for real estate auctioneers that know what they are doing.

 

Continental Auctioneer Schools has the only licensed real estate auctioneer training course in the world.  

 

Auction School of Real Estate

(Division of Continental Auctioneer Schools, Mankato, MN)

 Launches

State of the Art Real Estate Auctioneer / Agent Training

 In Foreclosures, Short Sales and REOs

The national inventory of homes for sale is at an all time high, and one in seven homes in this country is actually sitting empty with holding costs that are killing. Prices are tumbling and there is no relief in sight.

 Foreclosure rates are soaring, and as those owners are kicked out of their homes, these homes are sitting empty with conventional (trying to sell it slowly over the next several months or years, or maybe never) “For Sale” Real Estate Signs. Meanwhile, more than (1) one trillion in adjustable rate loans with kick mortgage payments higher for tens of thousands of owners, which will push foreclosure rates even higher as people simply walk away from their over priced homes.

According to a recent investment banker report, today there are 17.4 million vacant homes in the country. That means there are more vacant homes in the U.S. than at anytime since records have been kept. Now, as a result too few buyers are facing too many homes, the rate of price reduction has been accelerating and will continue to get even worse. Real Estate experts are predicting as much as a 50% decline or more from today’s current inflated prices. There is little doubt that homeowners must lower their price expectations if they want to sell their real estate or use the real estate auction method which does not limit the price. We use the increasing method versus the (price reduced) method.

 For real estate licensees the number of closed transaction had just about come to a dead stop. This current environment creates a unique opportunity for real estate auctioneers in representing sellers of these homes.

 Auction School of Real Estate (Division of Continental Auctioneer Schools) Mankato, Minnesota has created an exclusive training program exclusively for attendees to give them the specialist knowledge and expertise needed to advise clients and market these properties at auction.

 Executing transactions on these properties at auction requires more knowledge and complexities than conventional real estate sales. Our program will give real estate auctioneers the understanding of the short sales and foreclosure process, as well as how to build relationships with financial institutions. It will teach you how to provide Auctioneer Price Opinions (APOs) as well as how to advertise, market and close these sales by identifying the buyers willing to pay the highest price in today’s marketplace by being able to offer the real estate auction option. Banks, mortgage companies and sellers will require this expertise. This class is designed to fully prepare auctioneers and agents with real estate auctioneer training to handle this complex business in the most professional and time value of money efficient manner. In order for you to be the best advisors to your clients, you need to be the best trained. By being the best trained, you will develop lasting relationships with institutions that will earn you additional business for years to come.

 Our objective is to have you fully qualified to take advantage of this real estate problem niche as quickly as possible so that you have the real estate auction advantage and are able to offer your clients another option, such as a quick sale, attracts attention, freezes the market, creates an urgency to buy, and best of all the seller does not have to pay the commission, we charge the commission to the buyer, it is called a buyers premium. Your sellers can name the day, time, place of the real estate sale and the date of the closing. Of course these properties are sold without contingencies such as financing or subject to the sale of another piece of property. One more, the seller pays the marketing costs! Isn’t that great?

 Until now, the number of real estate auctioneers with any kind of training in handling short sales, foreclosures, and REOs has been non existent. Demand for this expertise is rising and will continue for years and years to come. There has never been a more opportune time for real estate agents and real estate auctioneers to learn how to work this area successfully for the ultimate benefit of the consumer and their own personal production. You need to distinguish yourself by taking our course and perfecting the skills required. It will add value to your core real estate auction business if you do.

 This four-hour portion of Auction School of Real Estate Training “Foreclosures, Short Sales and REOs” is now offered exclusively to attendees attending Continental Auctioneer Schools. We encourage you to take full advantage of this special opportunity to grow your business and become a real estate auctioneer expert. Give Rich Haas a call today and get registered for our next class. (507) 625-5595

Click here to go to our Auction School of Real Estate School page

 

 

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