Home Auctions: An Answer to Selling A Listing
May 27, 2016
President, Brandly & Associates, Inc.
Most people may not be aware that auctioneering and real estate work hand-in-hand.
In fact, over 50 percent of all auctioneers across the U.S. have a real estate license. At the same time, only 4 percent of all real estate professionals have an auctioneer license – this percentage is about to change. In recent years, the demand for auctioning in the real estate industry is at a higher level than ever before – and this trend continues to grow.
Real estate auctions across the nation have been drawing more attention to buyers, many times get higher sales prices and cleaner, quicker closings than traditional real estate marketing.
What’s a typical real estate auction story? Countless auctioneers report property lagging on the market for months with traditional marketing techniques only to realize a higher price when converted to an auction. A few real examples include:
- Previous offer of $110,000 – sold at auction for $149,500
- On the market for 90 days at $235,000 – sold at auction for $310,000
- Listed for six months at $72,500 – sold at auction for $95,000
These examples are typical headlines auctioneers report every day across the U.S. Sellers are getting more and they are netting far more as well. Auctions typically require the buyer to pay commissions, all closing costs and close quickly – this can save a seller another 10 percent to 15 percent over and above their final sales price. The real estate professional also gets paid commissions sooner – it’s a win-win for all involved.
In today’s competitive environment, a real estate professional needs as many tools in their toolbox to offer clients and to attract business. Having the capacity and knowledge to conduct home auctions can truly set a real estate professional apart from their peers. Real estate professionals with an auctioneer license or training are also making upwards of 30 percent more in annual income versus their traditional real estate counterparts.
The benefits a consumer can experience from an auction includes:
- Quicker sales
- Lower holding costs
- Lower seller commissions
- Lower closing costs
- Non-contingent contracts
Each state has different laws and regulations at it relates to auctioneers. Some states require a license – the state of Arizona does not require a license, but training is available. Once trained, an auctioneer can sell real estate, cars, livestock, farm equipment, antiques, coins, jewelry and artwork – there is always a good market for personal property auctioneers as well.
The auction industry is an exciting, well-respected industry that typically produces happy clients. Consumers with both real and personal property will see a real estate professional who can auction as a “one-stop-shop” to sell it all – to the highest bidder.
Mike Brandly began his auction career in 1979. He is president of Brandly & Associates, Inc. Mike’s appraisal company completes over 150 appraisals per year for Probate, Civil and Bankruptcy cases. He holds a weekly auction, a twice-monthly car auction for Goodwill, various on-site auctions and other special-event auctions throughout the United States. Mike also recently became the auctioneer instructor for the Arizona School of Real Estate & Business. He can be reached by email at firstname.lastname@example.org or by phone at 614-461-9229.
50 Ways To Sell A Listing Seminar
FRIDAY, JUNE 24, 2016 – 9:00 AM TO 12:30 PM
50 creative ways to get your home shown & sold. Hear what services top producing agents provide to the seller as well as the marketing used to promote and successfully sell their listing.
Credit: 3 hrs. Agency Law