Field Guide to Auctions
(Updated December 2009)
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. (V. Chawla, Marketing Coordinator)
Research Statistics Taken from the 2006, 2007 and 2008 National Auctioneers Association (NAA) Surveys 
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 of sales- 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).
Auctions: The Basics and the Benefits-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
Auctions: The Basics and the Benefits, Realtor.com
Further Research
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
Auctions: The How To's
NAR's Introduction to Real Estate Auction course
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).
Real Estate Auction Hot Topics
Auctions Are Big Business in Flagging Economy, (Hubbard, Russell: The Birmingham News, Dec. 27, 2009).
House Flipping Makes a Comeback, (Haggerty, James: The Wall Street Journal, Dec. 9, 2009).
Artfact Introduces iPhone App with Absentee Bidding and Auction Price Research, (News-Antique.com, Dec. 9, 2009).
Auction Industry Sees Growth in Real Estate, (REALTOR® Magazine, March 6, 2009).
Fannie Mae Foreclosure Sale at 50 Cents on $1 Shows Price Reset, (Smith, Elliot Blair: Bloomburg.com, Jan. 28, 2009).
Useful Websites
Elsewhere on Realtor.org:
Realtor.org Auction Homepage
Online Auctions & Software Resources
Auction Organizations:
National Auctioneers Association
More Auction Websites:
U.S. Treasury Auction Page (w/links to other government auction websites)
Auctioneer State Licensing Boards
eBooks & Other Resources
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.
The All-New Real Estate Foreclosure, Short-Selling, Underwater, Property Auction, Positive Cash Flow Book, (Carey, Chantal Howell and Bill Carey, John Wiley & Sons, Ltd: New York, 2009)
Consumers may benefit from real estate auctions, (The Real Estate Professional, Mar. / Apr. 2005, p. 73).
Besner auction and realty policy and procedure manual, (Acme, MI: Besner Auction, 2004). HF 5438 B46
Auction trend grows as traditional brokers, auctioneers team, (Real Estate Broker's Insider, Dec. 1, 2003, pp. 1, 3).
Real estate auctions: The new land rush for auctioneers, (Auctioneer: Oct. 2001, pp. 26-28).
Auctions: An ancient tradition, (Auctioneer: Mar. 2001, p. 17).
California:REALTORS® recognize the value of auction marketings, (Auctioneer: Feb. 2001, p. 18).
Discounts in real estate auction prices: evidence from South Florida, (Appraisal Journal: Jan. 2001, pp. 38-43).
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 Listing & Selling Luxury Properties
Field Guide to Marketing Tips for REALTORS®
Field Guide to Effective Online Marketing
Field Guide to Preparing and Staging a House for Sale®
More Field Guides
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