In what is rapidly becoming the “Go To” form of real estate disposition, this week’s ode to real estate auctions is a simple overview of why you should seriously consider auctioning your property.
- You know the sale date, unlike listing a property and hoping to get offers
- Especially true if you are the personal representative/executor/executrix under court order to settle an estate or satisfy a bankruptcy trustee who won’t wait weeks or months for a sale.
- Spirited bidding among several bidders may bring a higher price than expected.
- Choices of 3 basic formats:
- Absolute Auction – Property will be sold regardless of price- most risk/reward as the bidders know that the high bid will be awarded the property.
- Minimum Bid Auction– The price point the bidding will start at. Once exceeded, a guaranteed sale will take place.
- Reserve Bid Auction– The minimum price is not published, least desirable auction format as even the high bidder cannot be certain they will be awarded the property as the seller reserves the right to reject or accept any bid not meeting the reserve price.
There are Ballroom Auctions and Stand Alone auctions, depending on the needs of the seller. I’ve been in Ballrooms with hundreds of potential bidders, not knowing which properties they are there to bid on, with the high rollers sitting in the front row, laptops and cell phones close at hand to have instant access to their bankers, investors or clients. Ahh, the excitement mounts as the bid caller calls each property, the crowd senses the tension and thrill of the moment, the bidding starts and in what seems like an instant, the caller cries “Sold” and rapidly moves on to the next property. If you have never been to an auction, you are in for a treat. Everyone loves a bargain, right? A better place to find one may not exist.
Searching out creative strategies and helping others to achieve financial independence through real estate investing became a natural way of life and I was for a time my own best client. I have lots of other cool investing strategies so if you like what you read, let us know and I would be happy to share more of them with you.
Randy Sotka is the Southwest Regional Director for RealEstateAuctions.com covering Arizona, New Mexico and his home state of Nevada. For more information about auctioneer and agent opportunities in his region, as well as information about Arizona real estate auctions, New Mexico real estate auctions and Nevada real estate auctions, contact Randy at 702-556-6354 or RSotka@RealEstateAuctions.com.