Archive for March, 2011

Shopping for a Real Estate Auction Company

March 28th, 2011 by PA - Bloger
With the auction method of buying and selling real estate growing in popularity, both property sellers and investors are on the hunt for a reputable and lucrative auction company. Good news for all parties involved: there is a plethora of real estate auction companies and auctioneers ranging from nationwide and online properties to local real estate opportunities that offer more personalized attention.  In other words, no matter what you’re looking for, there’s something for everyone. 

With this in mind, there are a few factors to consider regardless of the property type or location involved. Many companies dealing with real estate auctions also offer traditional property listings for sale, or handle the auctioning of various products. You may want to decide early in your search if you prefer a company that deals solely with real estate auctions. Some like the idea of having an organization that specializes in real estate auctions, where this mode of sale is their only focus; to others it is not a notable concern.

Membership or affiliation can be a selling point. Many real estate auctioneers belong to the NAA (National Auctioneers Association) which requires members to follow a code of ethics as a practicing auction company. This alliance can add credibility to the organization being considered.

Marketing is a key component in real estate auctions. Those who are seriously looking to utilize a real estate auction company are sure to study the company’s marketing strategy, which can include print and online ads, e-mail blasts, direct mail, local signage, etc. A company that has a strong and succinct plan of action is of great benefit.

Now to get down to specifics: Do you want a national or local company? Do you want your auction online or in-person?  Do you need a company that specializes in a particular kind of property? You’ve got a lot of choices.

With the growing success of the real estate auction industry, it’s clear that there is no shortage of real estate auction companies and auctioneers to choose from – you’re only difficulty may be narrowing it down to only one.

Florida Remains a Hotbed of Opportunity for Real Estate Investors

March 23rd, 2011 by PA - Bloger

The state of Florida is a magnet for tourists, retirees and residents for a plethora of reasons. Known as the “Sunshine State”, Florida boasts beautiful beaches, designer golf courses, balmy year-round weather, and of course everyone’s favorite theme park hosted by an irresistible Mouse. Florida is also getting more popular with real estate investors due to the boom of opportunities through real estate auctions.

Florida Real Estate Auctions

Florida Remains a Hotbed of Opportunity for Real Estate Investors

From commercial properties to luxury homes, there’s a real estate auction for it in Florida. The real estate crash obviously affected the entire country, but states such as Florida were hit particularly hard. Real estate buyers and investors have always considered Florida as offering some of the best deals in the market, and the onslaught of foreclosures has reinforced that idea. According to an article written in the New York Times in September 2010, “The state routinely sets new records for foreclosures — in the second quarter, 20.13 percent of its mortgages were delinquent or in foreclosure, a national high, according to the Mortgage Bankers Association. And with housing prices still in a free fall, almost half of all borrowers in Florida owe more on their mortgages than their properties are worth.”

For business and home owners in financial distress and anxious to sell a property rather than being put in foreclosure, the auction method of sale offers a lucrative option. With an accelerated marketing plan, reassurance of a specific time frame along with the possibility of selling for a fair price, real estate auctions are providing owners with much-needed relief.

The lure of Florida real estate for investors and buyers is obvious – with an overflowing inventory filled with every type of real estate to choose from, it’s a buyer’s dream market. Want a beach house? Go to Florida. Looking to open a convenience store? Go to Florida. The kids are in college and you’re itching to move somewhere warm? You guessed it – go to Florida. With the copious supply of real estate auction in florida along with committed sellers, limited negotiations, and an expedited sales process, it’s no wonder why real estate investors are flocking to Florida as the new land of opportunity.

Numbers can prove a point – PropertyAuction.com currently has 100’s of residential and commercial real estate auctions in Florida. Real estate auctions are regarded as beneficial to both sellers and buyers in Florida and many other states still trying to rebound from the nation’s unstable economy.

Upscale Property Owners are Seeing the Upside of Auctions

March 15th, 2011 by PA - Bloger
This month, a prime luxury property in Evergreen, Colorado will be available to interested buyers. At over 10,000 square feet, a few highlights of this Meadow Mountain estate include 7 bedrooms, 9 ½ baths, a wine cellar, billiards hall, an indoor pool, and a lighted outdoor waterfall system. But this lavish home isn’t being put on the real estate market – it’s being put up for absolute auction on March 25th. 

The owners of this luxury property are taking part of the latest growing trend in real estate auctions. Now, not only are commercial and residential property owners cashing in on the expediency and profitability of real estate auctions, but owners of upper tier homes and properties nationwide are jumping on the auction bandwagon. With the real estate market still highly unpredictable and lagging in sales, the speed and accelerated marketing plan of the auction method is attracting scores of sellers. Craig King, President and CEO of J.P. King Auction Company, states that sellers are “…usually looking for a date-certain transaction. The uncertainty and length of time a home can stay on the market in traditional sales processes — along with the difficulty pricing these one-of-a-kind properties — make a luxury auction with an intensive marketing plan the most viable option.”

Charleston Regional Business Journal reports, “Auction companies have said that no-reserve auctions have become more popular since the economy and real estate markets toppled… The instability has made it difficult for buyers and sellers to agree on a fair price.” With the market being oversaturated with luxury properties, these homes can be on the market for literally two years or more. Many owners of these properties aren’t necessarily in financial distress – they just consider it bad business to pay the overhead and taxes of these mammoth homes indefinitely. Auctions provide a lucrative solution – an aggressive marketing strategy, little to no negotiations and a room full of pre-qualified buyers are all too good to pass up.

The luxury properties being sold via auction span the country – from beachfront properties in Hawaii and Florida, to ski resort-type estates in Colorado and Montana. Even celebrities are seeing the benefits – according to Luxist.com, last year Concierge Auctions successfully auctioned singer/actress Cher’s home in the upscale Hualalai Resort in Hawaii for $8.72 million. Recognizing this area of growth, many auction companies are focusing on this facet of real estate. J.P. King Auction Company, Grand Estates Auction Company, Concierge Auctions and Premiere Estates Auction Company are just a few that specialize in this niche of real estate.

Luxury Real Estate Auction in Florida

This surge in yet another area of real estate auctions further proves that real estate owners who want to sell a residence, commercial property, luxury estate or parcel of land are seeing the auction block as the quickest and most cost-effective way to close the deal.

PropertyAuction.com Survey of 2010 Real Estate Auction Industry

March 8th, 2011 by PA - Bloger
Real Estate Auctioneers nationwide were surveyed over the course of one month and asked a variety of questions about their business in 2010 and projections for 2011.
Our infographic covers all the items.

 

A pdf download of the 2010 Real Estate Auction Industry Survey is available for download at the bottom of this post.

Topics covered:
  • Residential Properties
    Single family homes and condominiums were the most common type as reported by our auctioneers
  • Commercial Properties
    Auctioneers were asked to provide us with the most common commercial property type brought to auction
  • Type of Auction Sale
    Most respondents indicated that private owner sale leads this category
  • Style of Auction Sale
    Sealed bid was the least used auction format in 2010 according to our respondents
  • Format of Auction Sale
    Respondents indicated that the most frequently used Auction Format they employed during the year was Unpublished Reserve /Seller Confirmation
  • Amount of Auctions by Area
    The Southeast and Southwest areas of the United States were reported to have the highest amount of real estate auctions
  • Buyer Broker Representation
    Less than 25% of real estate auctions were represented by brokers. An interesting fact since auctioneers typically offer a 2-3% commission for brokers who register their buyers.
  • Advertising Allocation
    Print is still king! Lets see how 2011 does?
  • Predictions for 2011
    Results from our respondents show that Land will continue to be the most common type of property brought to auction in 2011. Retail properties are also predicted to be very high in volume in 2011. Respondents indicated that the South, specifically the Southeast, will continue to see the largest amount of real estate auctions taking place this year. The Midwest is predicted to rank high as well for real estate auctions in 2011.

Download the PropertyAuction.com Survey of the 2010 Real Estate Auction Industry [pdf] and check out our infographic for more details!

 

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