Five Steps To Selling A Home Through An Auction

Have you considered auctioning off your home? Even though auctions are traditionally more popular with paintings, antiques, and real estate foreclosures, auctions are growing in popularity among sellers with solvent, good condition homes as well. Here are a few reasons why an auction could be a good idea for you and what to consider when starting the process.

Why Some Sellers Like Auctions

In today’s market, auctions are not just for the sale of foreclosures anymore. Auction professionals have been selling conventional homes on more regular basis. Why? The reason is because sellers are finding out that they can receive just as good of a sales price on the auction as with a traditional sale, but an auction is a faster, more efficient form of selling. According to Williams and Williams, one of the largest auction firms, about 10% of their auctioned homes are sold at an even greater profit than what the seller had marked as the listing price on a previous traditional sale.

If you use an auction you will show your home over a period of weeks, in which the prospective buyer can look at the home, and then the auction will take place and in minutes the house will be sold and the closing will typically take place in about a month. If you are selling a home through an auction you can save a lot of time and hassles.

1 Pick the Right Auctioneer

Any auction is only as good as the auctioneer in charge of it. In this type of sale they are like your marketing agents that bring in the right person with the right bid. So what do you look for in an auctioneer? The first thing you need is one that is experienced in your house. You will find auctioneers that specialize in everything from antiques to multi-million dollar mansions, and everything in between. You need to pick the right one that specializes in your type of home if you want to have a fast home sale.

2. Figure On A Pay Arrangement

Different auctioneers have different forms of payments. Some, like real estate agents, will charge between 6-10% of the closing sale price, while others will do a flat 10% auction premium that the home buyer must pay. Still others will favor splitting the difference between both buyer and seller.

3. Which Method Of Auction, Absolute Or With Reserve

If you go with an absolute auction you will not have any price that has to be met in order to sell the house. In this type of auction the highest bidder will be the one that wins, no matter what price the house sells at. A reserve auction is one that has to meet a minimum price before the house is able to be sell. Most of the time an absolute auction is more dramatic and will also end with a higher final sale price. A reserve auction is much safer but will not usually yield the same final sale price. Also keep in mind that if you do an auction with reserve and you are not able to get a bid high enough to meet the reserve you will still have to pay the auctioneer fee, and it is sometime as much as if the house had sold.

4. How To Qualify Bidders

There are variations but generally auction companies require letters of credit from bidders stating that they can complete the sale. On the other hand, some companies just ask for 10% of the expected sale of the property up front, in which those who do not win will receive this money back.

5. How To Accept Bids

Are you going to have all of the bidders gather on your lawn? Will your home just be one of many other homes and everyone involved will gather in a central location? Are you going to allow people to bid via the phone and the internet? Many people will opt for the yard sale, and it does work, but central location auctions will typically end up with a higher final bid.

As you have discovered there are quite a few things that you need to keep in mind when you are planning an auction but once the auction is actually underway it is a lot less of a headache then if you had sold your home privately through the traditional way.

Real Estate Auctioneers

In the world of real estate, auctioneers are needed to sell homes at auction that either become foreclosed upon or are sold as part of an estate sale. These auctioneers have a strong ethics code that supersedes state law requirements, and many join the National Association of Auctioneers, which is a nationwide organization that prides itself on integrity and the highest standards of training and ethics. As with most real estate related careers, each state will have different requirements for auctioneers to become licensed. However, all of them are subject to a few different criteria before they can even consider becoming an auctioneer.

First, applicants must be over the age of 18. Also, they must have a clean criminal background and pass a written test that is approved by the state in which they will work. An auctioneer must have an apprentice license for one year or more before applying for an auctioneer’s license. The classroom requirements are dependent upon the state that is involved, but generally has around 80 hours or more of class time required for a real estate auctioneer’s license. The courses will consist of general auction techniques, business courses, and how to conduct themselves in a professional and ethical manner in all aspects of their business.

Auctioneers are no longer the image of past years. Younger people are taking up this profession, and it isn’t just for country folk or a certain demographic. Professional auctioneers come in every shape, size, and gender imaginable, and can make a decent living in this career. There are designations within the auction industry that a licensee can earn, which will require a specific course of study and a licensing exam that proves their knowledge, skills, and proficiency in that special area or designation.

Certification by the National Auctioneers Association is not required for most auctioneers. However, it is an added bonus to the state licensure that they receive that can only serve to improve their credibility and their professional career. There is a 14-day program required to become a licensed professional approved by the NAA, which concludes with a written and oral examination that must be passed. The minimum requirements of state licensure are all that is required for an auctioneer to practice, but having the extra certification of the NAA is suggested by anyone in the industry and all state regulatory boards. Auctioneers are widely respected in the real estate community, as they are trusted members of their profession.

Police Seized Car Auctions – How to Find the Best Auctions!

Police seized car auctions are now becoming a popular way for entrepreneurial individuals to make some money! However in order to be in a position to make some money you have to be able to find the auctions in the first place!

Car auctions provide the main way that seized police vehicles are sold. What many individuals are unaware of is that general auctions can have a ‘slot’ in their auction time table for police seized cars. This is very popular in the U.K. in particular and it is becoming much more popular in the U.S.

It is also very important to distinguish between the two as I have found that the best buys I have made have been in the auctions which have dealt exclusively with vehicles that have been seized. The reason why is quite simple. Most people have a belief that seized cars by the authorities are pieces of junk. Nothing could be further from the truth with many vehicles being between 3 and 5 years old!

So how do I find these police seized car auctions?

Method #1 Check your local newspapers!

There are three ways. The first is to check your local newspapers. These will periodically advertise any police auctions in the local area. By law all police auctions must be advertised to ensure that the sales process is free and fair and open to the general public. One of the two main problems with this method is that if you miss the advert you won’t know the auction is on. Secondly the advert will only give you a local venue – what about all the other potential auctions where you could be missing great bargains that are within travelling distance?

Method #2 Check online.

The second method is to go online and search for local auctions using a search engine and seeing what results come up. Unfortunately when I have done this I have had to be very ‘imaginative’ with the search terms I have used as most of the information I have had has been either out of date i.e. auctions that have passed or worst of all a bunch of sites that link to ‘links’ – not much use really!

Method #3 Join an Auction membership site!

This has been the best method for me by far. I didn’t realize it until a friend told me. I have been able to attend specifically police seized car auctions primarily because I have a method to accurately find when an auction is on, where it is including the website and contact details which has allowed me to identify potential bargains before going there. The main benefits with membership has been the time saved in identifying the right auction at the right time and avoiding the frustration at always feeling that I have ‘missed out’ on another auction when I knew there was money to be made!