Field Guide to Auctions
(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)
E - EBSCO articles available for NAR members only. Password can be found on the EBSCO Access Information page.
Auction: The 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
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 Developments & 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, (ALM Real Estate Media Group - Globest, 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).
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.
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
The following eBooks and digital audiobooks are available to NAR members:
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
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