Selling a Home Via Auction Growing in Popularity : The Real Estate Bloggers

Selling a Home Via Auction Growing in Popularity

October 27th, 2006 • Related • Filed Under

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Auction_gavelIf you are looking at selling your home quickly, a growing trend in the country is using the auction system. Homes sold via auction increased by 5.9 percent in 2006 and auctions have been trending upwards over the past 5 years.

While using an auction may seem unconventional, people interested in a quick sale have used this effectively. There is an excitement that auctions bring that is done correctly can significantly increase the price of a sale, and if you use the minimum bids correctly, you will be out only the fees to the auctioneer if the home does not sell.

As the real estate market cools and homes languish longer awaiting a buyer, both residential real estate “buyers and sellers are turning to the auction method, and we foresee this trend continuing to increase,” William Sheridan, president of the Overland Park, Kan.-based trade group, said in a statement.

The number of residential real estate auctions, the industry’s fastest-growing segment, grew 4.5 percent in the third quarter.

While residential real estate has the hottest hand, the three biggest segments of the auction industry are automobiles, land and agricultural real estate, and agricultural machinery and equipment.

The auction industry is expected to generate total revenue of $254.4 billion in 2006, up from $240.2 billion in 2005.via the Chicago Tribune.

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There Are 8 Responses So Far. »

  1. Comment by ben frank on 28 October 2006:

    Auction is one of eight ways to sell any house—and really there are two kinds of auction, right?: there’s the professional auctioneer and the “self auction” like at 5day.com. Learn more about the book I wrote explaining all 8 ways at methods4homeselling.com.
    Makes sense that all methods for selling homes are gaining in popularity and more so as we head into colder weather, more days on market, more inventory… that’s why I’ve cataloged them and give their pros and cons in my new book ‘the 8 ways best ways to sell your house’. It is great for anyone who’s not contractually committed to a certain way of selling—great for FSBOs, people with listings expired or about to expire, or anyone on the brink of deciding to sell and wondering where to turn for advice (from a source who’s not biased about the answer!).

  2. Comment by PaxBayArea.com on 31 October 2006:

    Mr. Frank’s comments are exactly right about the fact that there are many different ways to sell your home. That’s because every seller has his/her own unique situation and individual needs. Our company of professional Auctioneer / Consultants help sellers who aren’t sure about what is best for them. The Auction method of marketing is a true fit for only about 5-8% of sellers - those who need a time-defined sale and who are willing to take true market value for their home (open-competitive bidding between serious qualified buyers). Our company has established relationships with Realtors who we know and trust to take care of the best interests of those clients who would be better served by traditional listing. It’s certainly exciting to see the Real Estate Auction Industry growing (a more than $14 Billion increase in a year where every other segment of the real estate industry is reporting declines!) Great reporting Real Estate Bloggers!!!

  3. Pingback by The Basics of Real Estate Auctions « East Bay Network on 5 November 2006:

    […] As sellers become tired of waiting for the buyers to show up and the number of foreclosures rise, real estate auctions have been getting press. Bigger Pockets reports on the return of real estate auctions in Colorado, Real Estate Bloggers explains residential real estate auctions is the fastest growing segment of the auction industry, MSNBC reports on EBay as an auctioneer of real estate, and yesterday, Larry at Real Estate Undressed critiques EBay as a horrible way to auction off houses. […]

  4. Comment by Pam palone on 19 July 2007:

    Just need some help. I am a real estate agent interested in having an auction on one of my listings in the Black Forest, Colorado area. Can anyone give me information on companies that work this area?

  5. Pingback by Foreclosure Auction In Arizona Sell 150 Homes, Builder Auction in Oregon 141 Homes — The Real Estate Bloggers on 17 December 2007:

    […] the large auctions provide the critical mass of people to get these homes moving. While prices did not go through the roof, three quarters of […]

  6. Pingback by Foreclosure Auction In Arizona Sell 150 Homes, Builder Auction in Oregon 141 Homes on 17 December 2007:

    […] the large auctions wage the grave mass of grouping to intend these homes moving. While prices did not go finished the roof, threesome […]

  7. Pingback by Gold, zero, and stimulus. - Page 2 - MajorWager Forums on 28 January 2008:

    […] all bids. IOW, it isn’t entirely a real auction at all. Here, I just quickly googled this up: Selling a Home Via Auction Growing in Popularity — The Real Estate Bloggers Selling a Home Via Auction Growing in Popularity October 27th, 2006 | Real Estate Sales If you […]

  8. Comment by Santaluz on 9 February 2008:

    As a seller an auction is an intriguing opportunity to sell your home. Ebay and Craigslist have enabled the seller to conduct an auction, though using a professional helps ensure the transaction is handled legally and ethically. However, as a buyer an auction is not the best option for purchase. Competing against other buyers drives up the price in a market where the deal is in the purchase not the sale.

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