Archive for February, 2011

PropertyAuction.com launches a Real Estate Auction Mobile cross platform app

February 24th, 2011 by PA - Bloger

PropertyAuction.com, a niche website dedicated specifically to marketing real estate auctions, is launching its beta cross-platform application for mobile users. In 2010, mobile visitors to the site increased by over 2000% from 2009, so we took notice!

Users who access the site via a mobile device such as an iPhone, Android or Windows phone will be automatically presented with a link to the mobile version – for those of you who want to check it out on your desktop browser – give it a whirl: www.PropertyAuction.com/m (Looks great on any browser but it’s really designed for your smart phone)

PropertyAuction.com has designed its mobile site for convenience, speed and user-friendliness. Some features that are specifically formatted for mobile use include:

  • All real estate auction listings – including commercial, residential & land
  • Search option where users can look for properties by state, city and property type
  • Photos and information on each listing including property specifics and contact details
  • Mobile maps enabling users to immediately locate and view properties of interest
  • A cross-platform solution available to users of various mobile devices including iPhone, Android, Windows Phone and other popular smart phone platforms.

Currently, PropertyAuction.com has almost 10,000 nationwide auctions in over 3,500 cities in all 50 states as well as U.S. territories listed on its site, now easily accessible from your mobile device.

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Online Real Estate Auctions: The Benefits are Quite Transparent

February 23rd, 2011 by PA - Bloger
The constant upgrades in technology are consistently impacting every facet of the business world as well as our personal communication. The exposure and convenience of the Internet has every person and every product going online – and real estate auctions are no exception. 

Online real estate auctions are offering both buyers and sellers a highly attractive option. Not only are outcry auctions bringing in scores of bidders and buyers, but now online auctions are casting a nationwide net for anyone interested regardless of geographical location. For those new to the idea, buying a property via the Internet may seem a bit risky. Much to the contrary – online real estate auctions provide tremendous transparency where buyers can obtain all necessary information and then some. According to the LFC Group of Companies,”… online auctions feature an unprecedented level of transparency, allowing all interested buyers to view and download due diligence materials from anywhere with an Internet connection.“ Bidders are also given full insight into the competition. As XWAuctions states, “There is more transparency in the whole auction process because every potential buyer knows what other buyers are willing to pay for the same property.”

Convenience is an obvious benefit of online real estate auctions. Prospective buyers can search through numerous properties nationwide from the comfort of their own computer. “Properties in highly distressed markets are ideal for online auctions,” says Jesse Loomis, Vice President of Business Development at Bid4Assets. “An online auction brings information and bidding to a worldwide pool of buyers that cannot be easily reached through a traditional real estate agent.”

For sellers auctioning real estate, choosing the online method furnishes them with a far-reaching buyer base as well as maximum exposure.  Online auctions have a “’call to action’ element,” Loomis says.  “Properties in a local MLS system may sit for months before any offers are made, but a two week online auction can generate an offer on any property.  Absolute auctions are even more effective, as they guarantee a property will sell in a short timeframe at the highest price the market will bear.  This can work well for homes, land, multi-family, and commercial property.” Expediency is another perk with online auctions, where the use of electronic documents can help speed up the buying process and cut down on unnecessary paperwork.

Realtors and real estate brokers are also realizing the advantages of online auctions. XWAuctions says the online sales process is “an additional tool for selling real estate. Realtors would benefit from faster turnover of properties, faster receipt of commissions and it generates additional premium revenue streams in terms of listing fees and a buyer’s premium that they can charge. They are also able to attract more buyers, sellers, and agents to their business by leveraging auctions as a tool to gain competitive advantage.”

Through online real estate auctions, it seems that all parties have the chance to profit – buyers, sellers, and real estate professionals can all cash in on this lucrative option. This technological asset to the real estate industry is just one more facet of what makes today’s market chock-full of burgeoning opportunity.

More Brokers are Riding the Real Estate Auction Wave

February 14th, 2011 by PA - Bloger
Real estate brokers and agents are well aware of the rising popularity of property auctions. Real estate auctions are proving to be a hotbed of opportunity for real estate professionals to cash in on commissions and client rosters. There are three ways for a broker/agent to get involved in real estate auctions:

1)   Refer clients
2)   Be a cooperative broker/agent
3)   Be a listing broker/agent.

Clearly, the most financially advantageous of the three is to be the listing broker/agent, where some brokers can make 2% or possibly more in commissions. The role of the broker/agent can be similar to that in a traditional sale. According to realtor.org, the broker/agent “manages many traditional real estate functions and shares the commission based on the amount of involvement and the relationship defined by the parties involved. This relationship is beneficial for auctioneer and agent when services by a local auction or real estate company are needed or when an agent identifies a potential auction situation for a seller and the agent is not an auctioneer.”

Some of the standard responsibilities of a broker/agent in a real estate auction include providing the lead, completing due diligence, obtaining bids for maintenance, and helping bidders with the pre-qualification process. During the actual auction, a broker/agent can assist the auctioneer in the bidding process if support is needed. After the auction, a broker/agent often aids the buyer with matters such as inspections, insurance and financing. A commission check is received upon closing of the property. Types of agreements employed in the auction process can include a listing contract between the broker/agent, auction company and seller; or a pre-auction sales contract and addendum.

The other two ways for a broker/agent to represent a client in a real estate auction are also lucrative. When acting in a referral role, the broker/agent simply refers a client to an auction company and then collects a referral fee; whereas a cooperative broker/agent role is more involved – they sell a property at auction as the subagent, buyer’s agent or dual agent. Realtor.org states, “A cooperating agent or broker registers a buyer who purchases property offered through an auction and earns a commission established by the auction firm. This agent or broker accompanies the bidder to pre-auction events and the auction, registers him to bid, and receives a portion of the commission.”

It’s evident that real estate auctions are benefiting more than just investors. Many real estate professionals recognize the market growth and monetary potential of real estate auctions and see them as a profitable asset to the industry.

Understanding the Real Estate Auction Contract

February 7th, 2011 by PA - Bloger

Many home buyers and real estate investors are seeing the allure and financial benefit of real estate auctions. Some people are tempted to attend and start the bidding, but are hesitant due to inexperience with how the real estate auction contract works once a bid is accepted. They don’t have to wait any longer – a little research and some planning are all you need to be well-equipped for a real estate auction.

A typical real estate auction contract usually contains three basics: 1) As is, where is condition; 2) No contingencies; 3) Closing within 30 days. For the first item, “As is, where is” basically explains itself. In a nutshell, when purchasing a property at auction, what you see is what you get. Unless there is something specifically outlined within the contract, the “As is, where is” item means that the seller is not responsible for any damages or repairs the property may need. That may seem like a negative to some, but this is often where there is a bargain to be made. Many real estate investors see auctions as a goldmine of opportunity to obtain a property for below market value, where they can usually remedy any issues quickly and end up getting a lot of bang for their buck.

The ‘No contingency’ aspect of the contract is also relatively self-explanatory. Most real estate auction contracts have no financing contingencies, making it imperative for a prospective buyer to be sure of their ability to purchase the property in question. Usually, there are no refunds on bid deposits due to lack of financing. According to The Auctionarium, Inc., “No contingencies mean you need to have funds or financing lined up. If you bid on the house, then worked to get financing, it could be too late and you might face the prospect of not being able to close because your lender was unable to provide funding. The other main contingency would be an inspection contingency. Since you’re unable to renegotiate after a home inspection…, you might want to bring your contractor along while you preview the house… Bidding at auction is a legal and binding contract to purchase on the published terms and conditions.”

Expedient, no-nonsense closings are often a big draw for buyers and investors at real estate auctions. The typical contract for an auction property stipulates a 30-day closing. This straightforward process works well for buyers and investors, where the usual back-and-forth negotiations in traditional sales are avoided. As Hawaiian auction company Paradise Land and Homes states, “Rarely does an auction purchase contract fail to proceed to closing. This contrasts with conventional marketing/traditional real estate listings which historically have far lower success rates. Because of the absence of many of the contingencies in a typical real estate contract, auction sales contracts are far more likely to close.”

Real estate auctions are providing both buyers and sellers with a very clear-cut transaction, offering both sides a very practical and timely option to capitalize on today’s tumultuous real estate market.

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