Up Market, Down Market: When Do Auctions Really Thrive?May 4th, 2007 by PA - Bloger
Buyers and sellers at auction often comment how real estate auctioneers must really be thriving in a down market. With the amount of forced sales, foreclosures, and other situations related to the recent downturn in the market you would think this is the case but we hear a very different story.
The truth is that auctioneers and real estate brokers are affected by the markets in the same way. Inventories have certainly gone up for real estate auctioneers but they have also gone up for brokers. What is really selling? Well, not a lot. Seller expectations are still very high and therefore even properties that are brought to auction are not moving as quickly or as high as they did in the better markets of the past 5 years.
If you sold a property within 5 days of listing it in the hot market with a real estate broker or private treaty method you most certainly left money on the table by not using an auction. Sure, you had a bidding war amongst the first wave of people that made it over to see your property but did you really get the highest possible price, we think not. By gathering all of the people interested in a property on a particular day preceded by an intense but relatively short marketing period, you can be sure that you’ve obtained true market value under current market conditions with the use of an open outcry public auction.
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