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(Updated June 2014)

Real estate sale by auction is an innovative and unique method for completing real estate transactions. This process often accelerates the sale process, exposing a property to numerous buyers in a short period of time. Read below to learn the benefits and drawbacks to real estate sale by auction. (H. Hester, Information & Digitization Specialist)


Auction


E - EBSCO articles available for NAR members only. Password can be found on the EBSCO Access Information page.


Auction: Th​e Pros

  • Generates a list of ready, qualified buyers
  • Offers clients and customers new selling and purchasing options
  • Increases revenue and market share
  • Develops your own market niche
  • Assurance that property will be sold at true market value
  • Property is sold within a relatively short period of time
  • Exposes the property to many potential purchasers
  • Auctions bring people in to look at all your listings, not just the auction listing
  • Successful auctions result in referrals and return business
  • Agents can earn commissions as referring agent/broker, cooperating agent/broker, or as the listing agent/broker

Source: Auctions: The Basics and the Benefits, (National Association of REALTORS®, n.d.)

Brokers See Benefit of Auction Process, (National Real Estate Investor, May 20, 2014).


Auction: The​ Cons

Feds Target Bid-Rigging Scams at Foreclosure Auctions, (REALTOR® Magazine, June 2013).

Foreclosures Spark Crime, Report Says, (REALTOR® Magazine, Feb. 2013).

Man Pleads Guilty to Bid Rigging at Auctions, (REALTOR® Magazine, Mar. 2011).

Price Discovery in Real Estate Auctions: The Story of Unsuccessful Attempts, (The Journal of Real Estate Research, Jan-Mar 2006). E


About Auctions

What Is The Commission On Auction Properties?, (REALTOR® Magazine, June 14, 2012).

Real Estate Auctions: The Future of Home Sales? (CBS News, Apr. 2012).

The Auction Option, (Commercial Investment Real Estate, Jan/Feb 2011).

Types of Auctions, (National Association of REALTORS®, n.d.).

Auction Glossary, (National Association of REALTORS®, n.d.).

What Factors Impact the Success of a Real Estate Auction? (National Association of REALTORS®, n.d.).

More Sellers Opt for Auctions, (REALTOR® Magazine, Nov. 2011).

Auction Industry Sees Growth in Real Estate, (REALTOR® Magazine, Mar. 6, 2009).


Recent Develop​ments & Case Studies

Popularity of Auctions Calls for More Education, Says Auctioneer John Dixon, (PR Newswire, May 14, 2014).

Half Auction, Half Private Sale: New Selling Method Gathers Pace, (Real Estate Business, Mar. 25, 2014).

The Role of Bidding in Determining Sales Price for Residential Property, (Journal of Housing Research, 2013). E

Grand Estates Auction Company Takes Local Real Estate Global, (PRWeb, May 2013).

Going Once, Going Twice… (Mortgage Banking, 2011). E

Mansion May Fetch Record Amount at Auction, (REALTOR® Magazine, Aug. 2011).

REO Auctions Should See Uptick Soon, (REALTOR® Magazine, 2011).


The Auction Market & Marketing

Auctions in Some States Blaze as Haze Falls on Foreclosures, (Investor’s Business Daily, Mar. 2014). E

Auction.com Amasses $147M in Feb. Deals, (GlobeSt.com, Mar. 24, 2014).

Foreclosed Sales U.S. Auctions Double as Prices Gain, (Bloomberg, Nov. 26, 2013).

Foreclosure Activity Drops to 6-Year Low, (REALTOR® Magazine, May 2013).

Real Estate Auctions: Marketing, Advertising, and Other Expenses, (National Association of REALTORS®, n.d.).


Auction Resources &​ Education

Real Estate Auction, (National Association of REALTORS®, n.d.)

Federal Real Estate Auctions, (U.S. Government Services Administration, n.d.).

On the Govsales.gov website, search for a variety of government surplus and seized property—including real estate. In the left navigation bar, mouse over Real Estate and make a selection, such as houses, buildings and land, farms, or international real estate.

National Auctioneers Association

Auctioneer State Licensing Boards, (Alabama State Board of Auctioneers, n.d.).

Seized Real Property Public Auctions: General Terms of Sale, (U.S. Dept. of the Treasury, n.d.).


eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

The All-New Real Estate Foreclosure, Short-Selling, Underwater, Property Auction, Postive Cash Flow Book, Adobe eReader

Future Shop: How the New Auction Culture Will Revolutionize the Way We Buy, Sell, and Get the Things We Really Want, (OverDrive Audiobook)

Books, Videos, Research Reports & More

The resources below are available for loan through Information Services. Up to three hard copy books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Services at 800-874-6500 for assistance.

Besner auction and realty policy and procedure manual, (Acme, MI: Besner Auction, 2004). HF 5438 B46

Buying Bargains at Property Auctions, 2010, Howard Gooddie

The All-New Real Estate Foreclosure, Short-selling, Underwater, Property Auction, Positive Cash Flow Book, (Wiley, 2009).

Field Guides & More

These field guides and other resources in the Virtual Library may also be of interest:

Field Guide to Effective Online Marketing

Field Guide to Marketing Tips for REALTORS®

Information Services Blog


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