Field Guide to Auctions
(Updated April 2010)
According to the National Auctioneers Association's 2008 Industry Research Update, "the gross revenue from the live-auction industry remained unchanged when compared to 2007. Approximately 268.4 billion was sold at live-auction in 2008, a decrease of slightly less than 1% compared to 2007." Furthermore, one of the fastest growing auction areas in 2008 was the residential real estate sector, while land and agricultural real estate auctions have remained with steady growth meaning that business is going up for Real Estate auctioneers, even in this poorly performing economy. Read on for further news and information regarding the usage of auctions in the real estate business. (K. Stockert, Information & Web Content Specialist)
About Auctions
- 63% of survey respondents reported either an increase in gross revenue or no change from residential real estate.
- Approximately $58.6 billion in real estate was sold at live-auction in the US in 2007.
- 2006 Total Auction Sales: $257.2 billion (includes all types -- real estate, machinery, art, autos, etc.)
- 2007 Total Auction Sales: $270.7 billion
- 2008 Total Auction Sales: $268.4 billion
- Automotive is still the largest sector in 2008, accounting for gross sales of $83.1B, a decrease of 5.4% from 2007.
The fastest growing auction areas from 2003-2008 are:
- Residential real estate (39.2% increase from $11.5B in 2003 to $17.1B in 2008)
- Land and agricultural real estate (33% increase from $19B in 2003 to $26B in 2008)
- Commercial real estate (27.4% increase from $11.8B in 2003 to $15.5B in 2008).
Source: 2006, 2007 and 2008 National Auctioneers Association (NAA) Surveys
Why Auctions? Benefits to the REALTOR®
- 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, Realtor.com
Auction Articles & Resources
NAR's Introduction to Real Estate Auction course
Auction Industry Sees Growth in Real Estate, (REALTOR® Magazine, Mar. 6, 2009).
Real Estate Auctions: The Basics & Benefits, (Realtor.org, 2005).
Buying Homes and Other Real Estate in an Online Auction, (About.com, 2005).
Types of Auctions, (Realtor.org, 2005).
Baby Steps: Auction Directories, (This Old House, 2005).
Market mechanism choice and real estate disposition: Search vs. auction, (Cornell University, Jan. 2002).
How to set minimum acceptable bids, with an application to real estate auctions, (University of Texas/Cornell University/University of Maryland, Nov. 2001).
Discounts in real estate auction prices: Evidence from South Florida, (Appraisal Journal, Jan. 2001). Q
Useful Websites
Elsewhere on Realtor.org:
Realtor.org Auction Homepage
Online Auctions & Software Resources
Auction Organizations:
National Auctioneers Association
Other Auction Websites:
U.S. Department of the Treasury Auction Page (w/links to other government auction websites)
Auctioneer State Licensing Boards
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 (Kindle, Adobe eReader)
Books, Videos, Research Reports & More
The resources below are available for loan through Information Central. REALTORS ® may borrow up to 3 eBooks for free! 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 Central at 800.874.6500 for assistance.
Besner auction and realty policy and procedure manual, (Acme, MI: Besner Auction, 2004). HF 5438 B46
Going going gone! Auctioning your home for top dollar, (New York: John Wiley-DM, 2000). HD 1341 C18g
Making real estate auctions profitable: A reference guide, (Chicago, IL: National Association of REALTORS®, 1997). HF 5438 N21m
Under the hammer: Property in Ireland, (Dublin: Oak Tree Press, 1997). HD 1375 P87u
Real estate auction sales training: strategies for sales success, (New South Wales, 1995). VT400
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 Listing & Selling Luxury Properties
Field Guide to Marketing Tips for REALTORS®
Field Guide to Preparing and Staging a House for Sale®
More Field Guides
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