A Last Resort?????

A Last Resort?

Once considered only a last resort for disposing of distressed property, the auction process has grown so much in popularity that the fastest growing segment of the auction industry is now in the sale of real estate.

If current trends continue as predicted by national real estate experts, within this decade more than 30 percent of all real estate sales will be conducted by auction.

A “people” event, auctions have proven to be both convenient and successful, even in otherwise depressed markets. The auction process itself is interesting and captures a lot of attention, often turning “spectators” into “participants” as they become more familiar with the process.

Nothing New

Auctions are certainly nothing new. Auctioneering had its roots in ancient times, and has played a vital role in the evolution of commerce as we know it today. The Greek historian Herodotus first documented auctions in 500 B.C., when he observed the annual wedding auction in Babylon, where brides were sold for marriage.

In Imperial Rome, returning soldiers successfully employed the auction process to sell the spoils of war. English historical records, beginning in the 13^th century, document the common use of the auction process (called “public outcry”) by licensed persons.

During the westward expansion of our own country, auctions were commonly used to dispose of property that could not be carried cross-country. During the Great Depression, however, real estate auctions began to flourish.

Unfortunately, this was largely the result of widespread foreclosures, and negative connotations became attached to auctions. The period immediately following the Great Depression saw a decline in auctions, but some individuals attach a stigma with auctions to this day.

In recent years, however, auctions have once again come into popularity and the auction method is rapidly becoming an accepted way of achieving a real estate sale. This resurgence of interest in auctions was spurred on by the decreased appreciation of real estate values during the 1980s. This soft market gave sellers and real estate brokers a reason to look once again to auctions as a means of selling properties. But this time, the auction process emerged as a recognized marketing tool for the sale of non-distressed properties as well. The residential and commercial real estate industry is now reaping the benefits of a growing and vital auction market.

In Australia, where auctions first began to take roots in the early 1970s, the real estate auction has now become a traditional method of sale, accounting for more than half of all real estate sales. The overwhelming success of the auction process for non-distressed sales has made auctions a preferred choice in Australia, where “auction” is equated with “immediate action” and the real estate companies that offer the auction method are the most successful.

Submitted by Hank Robinson call about your real estate auction needs 813 414 0980

Auction Competition

The biggest competition of a real estate auctioneer is not another auctioneer but the lack of information the general public has regarding the process. Many are unaware of the benefits of an auction to sell their property.

Most auctions are successful with a great turnout and happy buyers and sellers.

At times this does not occur. Often this occurs because an auctioneer tries to get into the business of auction without experience. They take a property that should not be auctioned. As after all auction is not for everyone and is not for all situations. On these occasions the property will not sell and the buyers are unhappy because they want to buy.

With this blog I hope to help more people understand the process of real estate auctions. So that you may consider it yourself or simply understand the process.

You see unfortunately there is not a book available that will tell you everything I or most auctioneers that have been selling real estate for many years know.

Submitted by Hank Robinson call about your real estate auction needs 813 414 0980