Have Anyone Heard About Using Auctions To Sell Their Properties?
I never thought of that as being a vehicle to move properties. If anyone has done this or has been to an investor's auction, could you tell me how it works? Who is the auctioneer, and what is the procedure? I think I wouldn't mind going this route at some point in time later in my investing career.
Thanks guys,
quinn
if anyone has Lufos has. ask him....I have never herd of one except in the instances of some evil taking it away from the rightful owner to settle a debt. Sound like a great idea though wonder if it work?
LUFOS wadda ya think??
[addsig]
Interesting enough some of the probate attorneys used it and it was ok. They use an auction company who post the property and people call in and they send them mailings. A lot of brokers of course horn in and qualify with the auctioner to represent.
I am not crazy about it. I really do not see any big savings in so doing. The regular listing procedure and exposure thru the MLS seems to do the trick.
Some of the auctions were a little loose you did not put a full amount down, just a qualifying amount down like 5% of bid or something. I only tried it once and I was not happy, Not enough attendance and my broker community said bad things about me. Some of which I must admit were true. I did feed my Cat bad eggs and ham. and he did have a funny hat.
Cheers Lucius
HMM.
[ Edited by WheelerDealer on Date 12/07/2003 ]
HMM. I like the idea of being able to liqudate easly. and not by taking a firesale loss. If they could simplify the realestate purchase process like a car.....(i go to dealer only auctions where they sell 7000 cars in 5 hours) It might turn into the easiest ways to "flip" propertys to professionals.
[addsig]
Donald Trump did it to sell the luxury apartments in trump towers.
I have never sold a house at auction but I have been standing there with a number when a few were sold.
It is a quick way to sale a house. But in most states it is not cheap. You have to have an auction company (licensened and insured) to conduct the auction. Then you have to have a RE Broker to take care of the transaction.
As for getting market value. I go to all kinds of auctions and you never know what something will sell for at auction.
The last RE auction that I went to was a bank REO with a foundation problem. If you took market value and subtracted the repair cost that is what the lady paid for the house. The bank made out very well on this one. But not all RE auctions turn out so well for the seller.
I've heard of it. My partner down in florida is in contact with a group who does it constantly.
Eric
[addsig]
If you do have an auction, why would you need a RE broker if it is your property that you are auctioning off?
Quinn
Quote:
On 2003-12-07 17:33, quinn wrote:
If you do have an auction, why would you need a RE broker if it is your property that you are auctioning off?
Depending upon the state it may be required. If it is required by the state the auction company will not hold the auction without a broker.
unless , of course, the property is owned free and clear..
What about putting your property for sale on one of the online auction sites? I've checked out those sites and you can provide photos and any other "due diligence" info, and prospective bidders can email you for info. You put a minimum bid amount and I think the hosting website gets a percentage of sale price.
Might be worth checking into?? I can give you the name of at least one of those sites if you want to PM me.
Good luck -
noel[ Edited by noel2 on Date 12/09/2003 ]
Noel--
I'd be interested in one of those auction sites for curiosity. How do they market to inform bidders of the auction?
I've checked in to absolute auctions around my area and after the advertising, 6% fee, etc, etc, etc, I normally do better paying a flat fee of $300 to list the house on MLS and only 3% fee.
Let me know if you think these online auctions have merit.
jim
There's a guy named Effros who wrote a book on R.E. Auctioning. It may be called something like, "Sell your home in 5 days". It's becoming more popular.
Check Amazon for this author.
There's a round robin process. You can still put in a reserve price below which it will not be sold. It's a way to unload property quickly-if it becomes necessary.
There's a guy around here who does these regularly. It's a combined broker/auction house setup, so there's only one agency involved. I didn't pay very close attention to the setup, but it was pretty much a public way to get four or five serious offers competing against each other quickly. This was around Greenlake in Seattle, where reasonably priced houses are getting multiple offers and selling in small numbers of days.
The result of the auction was more that they accepted your bid rather than you actually bought the house on the spot, but again I wasn't paying close attention to the details.
I think they're estate sales more often than not.