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