"It's my money and I want it now."

I have just returned from a closing for a home I sold at auction. The owner was able to receive the proceeds from his home in less than 100 days from listing to closing. We took seven weeks to prepare and market the auction. The buyer was given six weeks to close. This represents a much shorter time than most traditional selling periods.

When is it smart to sell real estate by auction? When having the proceeds earlier is important. Many owners have their property vacant during the marketing process. The mortgage payments and other expenses continue. Heir property is always a good prospect for an auction sale. Multiple owners are often difficult to have in communication when an offer is received. With an auction everyone knows the date and time in advance when an offer will be received. The reserve price has been agreed upon. When the bids exceed that price all of the heirs have agreed to sell. In a traditional sale only the asking price has been established. When one of the heirs goals does not line up with his relatives it can get tense. Some will want their money now. Others may want to wait for a higher offer that may or may not materialize.

With an auction we establish a minimum price that will be accepted. Dates are selected for the sale. A closing date is determined. A marketing plan and budget are established. In traditional real estate an asking price is determined. Marketing plans are developed but an end date cannot be determined. The budget is somewhat open ended. The cost of ownership continues. The home or property must be kept in a constant state of readiness. If an offer does not come the price is lowered and the process restarts.

The value of a home is determined by a price a knowledgeable owner will accept and a knowledgeable buyer will offer when neither party is under duress. Value is related to the condition and location of the property. When a property will sell is determined by the asking price and if the market place knows it is available. Advertising is key to selling homes. A Realtor must devote a portion of their expected commission to advertising the property. Will marketing time be 60, 90 or 180 days? With limited resources the marketing budget must be spread over a longer period of time. In an auction sale marketing time is generally about six weeks. The budget can be spent in a relatively short period of time. Normally we advertise the reserve price which attracts more buyers. Buyers are attracted to an auction in hopes of getting a great buy. Many will come to watch the show. The excitement of an auction attracts buyers.

If you need your money now we can help. If a fellow Realtor has a client that this process could help we would be happy to work with them.

Check out our websites:

www.Gary-Barker.com
www.GaryBarkerAuctions.com

Opportunity - Real Estate Auction

For Sellers

You decide what day you will receive an offer on your real estate. The auction process creates excitement and a sense of urgency. Buyers compete for your real estate. You sell "As is, where is". Your price will increase as the auction progresses. Selling conventionally, often you keep lowering your price until you receive a low ball offer. Remember there are only two reasons your property has not sold. Price and advertising. If the property is priced properly and people are aware, it will sell. Advertising for an auction is concentrated for a particular date. The day of the auction you can decide whether or not to accept the bid.

For Buyers

Typically an auctioneer will have information and disclosures available in a convenient location for your considerations. You get to experience how the rest of the market views the property. Appraised value is what a knowledgeable buyer will pay and a knowledgeable seller will accept when neither is under undue distress.  The other bidders are providing real testaments of value.  A live auction is an appraisal. A buyer will pay only what the property is worth on that day. Which may be less than others are asking.

For Brokers

The auction process lets you concentrate your efforts for a particular property for a date certain. It will expose more buyers to your listing. In this market how many sellers have not received an offer. In recent years prices have continued to lower. Selling now may be better off selling now rather than later. Bringing a buyer client to an auction may help you find them a great value and allow you to earn a commission. Most auctioneers will participate with Buyer's Agents. 

Experience a Real Estate Auction

I will be conducting a real estate auction on August 25 at 11:00 at Unit 10 Eastern Shore Townhouses. See my website www.GaryBarkerAuctions.com . It has the terms of sale and information about the property.

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