Wednesday, August 06, 2008

Accelerated Marketing – aka Auction – Sellers Need Options!

In today's market, a professional real estate agent owes it to the seller to consider and present all options for selling a home, especially when it has been on the market for a while.

There's a popular perception that "Auction" = "Distressed Property." That's a holdover from the Depression and the downturn of the 1980's, but no more true today than the idea that direct mail is the only way to advertise. In reality, "Auction" can mean "Non-contingent, cash deal, no closing costs, commissions protected." Doesn't that sound better? Bidders at an auction know they are going to pay only what they have to and are comfortable with, and sellers know they will get the best price possible. The point is, a creative and qualified auction company can create a buying audience of qualified buyers, build interest, and create urgency.

It's not unusual to see four houses on the same street for sale, all about the same. It's hard to sell in this situation as buyers play one against the other. But suppose three of the houses have realtor signs out front, and the fourth has an auction sign. That house is proclaiming it will be sold at a specific time on a specific date. As a potential buyer, why would you not come to that sale? We humans love to get a better deal, and "Auction" says we have a chance at doing better than bargaining with the owners of the other three houses.

In fact, that's exactly what happened yesterday. As you can see, there are several real estate signs including one auction sign for three properties. Yesterday morning we held the auction and two of the three properties sold.

Many Realtors® are not familiar with the options available with auctions, and so don't offer them to their clients as an alternative. Auctions allow you to customize terms and conditions the way you and your seller want them, and there are different types of auctions to choose from. Why not put the auction tool in your real estate toolbox?

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