| Real Estate Auctions have been used to sell | | | | you're in a market where multiple offers are |
| properties successfully for many years. Do | | | | common for any listed property, take |
| they always work? No, but if done in the | | | | advantage of that excitement and let buyers |
| right way, they ALWAYS attract attention. | | | | bid against each other in an open format. |
| They ALWAYS make a property stand out from | | | | |
| other properties on the market. | | | | 3. On any good investment deal. If you have |
| | | | a property that needs to be rehabbed, income |
| There isn't a magic formula that will always | | | | producing property with good cash flow, or |
| sell a property, except price. An auction | | | | any other type of good investment property. |
| gives you the ability to use price as a way | | | | Investors buy based on numbers, show them the |
| to attract buyers. However, the majority of | | | | numbers! |
| buyers that you attract are expecting a deal. | | | | |
| So, unless your property is in a hot real | | | | Up until a few years ago, seller's who wanted |
| estate market or is unique and highly | | | | to sell by auction usually held a "live" |
| desired, you need to expect to sell at a | | | | auction on the property. This process |
| discount. You should expect to discount at | | | | requires hiring an auction company and paying |
| least 10% and many times more. | | | | hundreds and sometimes thousands of dollars |
| | | | in fees regardless of whether the property |
| If you're considering selling by auction, you | | | | sold or not. |
| need to realize that you will probably be | | | | |
| giving up some equity for the convenience of | | | | Along came the Internet, and then Internet |
| selling fast. However, time is money, and it | | | | auctions for "stuff". Now Internet Real |
| still makes sense for many sellers to use | | | | Estate auctions are starting to take hold. |
| this method. Not to mention, there have been | | | | One of the advantages of using the Internet |
| many auctions that have received bids right | | | | is that it doesn't require people to be |
| at, or higher than market value. | | | | onsite to bid. Bids can be placed anywhere a |
| | | | person has access to the Internet. |
| When should you use an auction? | | | | |
| | | | It's understandable why real estate Internet |
| 1. On any property that you are willing to | | | | auctions are becoming popular. They make |
| take at least a 10% discount. The bigger the | | | | this successful method of selling real estate |
| discount the better chance for success. | | | | accessible to many more sellers and |
| | | | investors. |
| 2. On any property in a hot market. If | | | | |