Auction market: Growing, growing strong
By Inman News, Thursday, April 24, 2008.Bookmarking Sites
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Inman News reporter and deputy editor Glenn Roberts, Jr., made a recent visit to a home auction event in Sacramento, Calif., where he grabbed some footage of attendees and the fast-talking auctioneer. This clip also includes an interview with Melissa Caldwell, an agent with Keller Williams Realty in Fair Oaks, Calif., who attended to help her clients in their purchases. Read the full three-part Inman News Special Report on real estate auctions, "Auction market: Growing, growing strong."
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Submitted by Ron Taylor on May 4, 2008 - 12:50pm.
As a licensed professional auctioneer in North Carolina, I find it interesting that Ms. Caldwell, agent for Keller Williams, was at the auction to make sure the amount her client(s) bid, would meet any appraisal requirements for her clint(s) to get financing on any property they purchased. I am also a licensed real estate broker.
Most real estate agents are still in the mindset that comps or an appraisal determines the value of a home. In todays upside down real estate market where prices are falling, why would someone buy a home today based upon comps or an appraisal that is several months old?
If I am in a room with 50 to 100 people bidding on a home, the bidding process stops when buyers see "value" has been reached. Would an appraiser have a problem with this method of determining value?
I know of a gentlemen that paid about $15,000 more for a home than what others thought it was worth because he lived in it as a child and it had "sentimental" value to him. Would an appraisal show this "added value?" I think not.
It is the market, viz., a group of willing buyers, that determine market value, not comps or an appraisal. I know that is hard for my fellow real estate professionals to understand as most real estate training teaches differently.
The "list and sell" method of selling real estate starts the price high, then lowers it over the coming weeks and months if the property doesn't sell quickly. And I must add, that if and when it does go under contract, in most cases it is full of contingencies that lowers the value even further.
Whereas the auction method starts the price low and moves up until true maket value is percieved. And there are no contingencies as the property is sold "as is, where is."
Auctioning real estate is the fastest way to establish true market value and to get the home sold fast. For more information on real estate auctions or auctioneering, visit my website at www.canSellnow.com .
Ron Taylor<><
President/Broker/Auctioneer
The Restorer, Inc.
D/B/A Taylor and Sons Real Estate & Auctioneers
252-257-4822 (Office)
252-257-1302 (Fax)
www.canSellnow.com
Submitted by Ralph M on June 16, 2008 - 9:32am.
"Auctioning real estate is the fastest way to establish true market value and to get the home sold fast."
and what do you successful auctioneers do when the auction bid does not meet the minimum reserve?
then what is the VALUE?
Auctions do not always work, the ones that do not work go where........to the real estate company. Crazy how that is.
No contingency????
No complete inspections and/or impulse bidding without thinking and/or No attorney approval clause and/or complete forfieture of deposits and/or and/or and/or and/or some homes do not sell just like other real estate professionals ways.
If you are a buyers broker representative, then these are sometimes the worst places to buy.
There is NOTHING perfect or guaranteed. Stop the salesmanship here because we are ALL salespersons one way or another.
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www.nosellercost.com
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www.weuuzit.com