REALTOR® Magazine Online: Alternative Selling Options

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Developing a Property Marketing Plan

Listing and Marketing Checklist

Marketing Media To Consider
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Property Advertising Techniques
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Advanced: Getting the Most from Your Advertising Dollars

Online Property Marketing
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Conducting Open Houses
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Alternative Selling Options
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Complying with Fair Housing
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Property Disclosure
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Common Property Hazards
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Property Marketing Quiz

Bright Ideas: Property Marketing

More Resources: Property Marketing

Code of Ethics: Property Marketing

ALTERNATIVE SELLING OPTIONS

Negotiating a sale one-on-one remains the predominant way to sell residential properties, but don’t rule out the alternatives.

Auctions

Auctions were once only used for troubled properties and dire situations, but this method of identifying a ready buyer for a home is gaining ground, especially now that auctions can be conducted over the Internet. Property auctions brought in $54 billion in 2002, up 10 percent from two years earlier, according to the NATIONAL ASSOCIATION OF REALTORS^®.

TIP: Learn more about real estate auctions from the National Auctioneers Association, the Auction Marketing Institute, or purchase Guide to Real Estate Auction.

Benefits of Auctions
For the seller:

Realizing a quick sale that reduces long-term carrying costs.
Eliminating the need for numerous unscheduled showings.
Eliminating or reducing the delays caused by contingencies.
Knowing just when the property will sell.

TIP: Luxury homes are often good candidates for auctions because of their uniqueness, but sellers should put them on the market first at a top price to see if a potential buyer emerges. If the home doesn’t sell in 90 to 120 days, it’s a prime candidate for an auction. —Steven L. Good, Sheldon B. Good & Co. International, Chicago

For the buyer:

Eliminating the long negotiating process.
Knowing the purchasing and closing dates of the property.
Competing fairly and on the same terms with all other buyers.

For the salesperson:

Assuring that the property will sell in a short period of time.
Concentrating marketing to ensure that interested buyers are all informed.
Receiving referrals and new sources of buyers from successful auctions.
Offering clients another option for selling or buying.

TIP: Approximately one out of 10 properties will sell before the auction takes place, estimates real estate auctioneer Steven L. Good of Sheldon B. Good & Co. International in Chicago.

Likely Properties for Auctions

Homes of owners being transferred who need to get their equity out quickly.
Homes where the seller is having difficulty making mortgage payments and could face default.
Homes where the need for extensive renovation is difficult to factor into the price.
Wealthy homeowners who don’t want the time and hassle of a traditional sale.
Unusual properties that are hard to value.

Properties Not Suited To Auctions

Sales in which greater flexibility is required in the sale.
Properties that are easily valued and have numerous comparables.

Tips for Better Auctions

Conduct a pre-auction open house, and allow adequate time for inspection before the sale.
Make repairs and cosmetic improvements to the property before the sale.
Provide home-inspection reports and other due diligence.
Request a completed title search.
Promote the auction heavily, and target specific audiences as you would for a traditional sale.

TIP: A real estate salesperson may be entitled to a commission on a property sold at auction, once the sale is closed. To help ensure that you are compensated for bringing a successful buyer to the sale, sign a “broker participation form,” with the auction company.

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