Tennessee Real Estate Auction Services Mike Walker Auctions
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No Longer A Last Resort
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Across the country, real estate professionals are increasingly turning to the auction as a winning marketing tool. If you properly qualify your situation as a potential auction scenario (we’ll tell you how), you have an excellent chance at turning over a property quickly.
Auctions offer clients and customers new options, enhance your image as a full-service professional, expose the property to a wide market of potential buyers, and turn profits for your firm. Plenty of revenue-producing roles are available in the auction process. You don’t have to become an auctioneer to benefit. You can earn a fee as a referring agent/broker, a cooperating agent or a listing agent. However you participate, you’ll add one more marketing weapon to your reserves of professional techniques.
The Two-Thirds Rule
Not all properties should be sold at auction, but certain properties and situations will benefit greatly. A dependable way to determine whether a property lends itself to auction is this: If two of the three main components of a transaction (market, the seller and the property) lean favorably toward auction, then it should be offered to a seller as a sales option.
Here’s a checklist to figure out if the Two-Thirds Rule applies to the property you are handling:
Do these characteristics describe the market?
· a changing market
· a dull market — too much product but with buyer interest
· not enough of the particular property type (unique, lake front, etc.)
· an emerging market — for example, a new development whose sales could take off once some properties are auctioned
· a seller’s market with high demand and high competition
Do these characteristics describe the seller?
· needs immediate cash
· going through a partnership or marriage break-up
· is moving out of state
· wants to liquidate an estate
· is retiring
· is an auction-minded seller
· has a listing that is about to expire
· has already purchased another house
· knows auction will bring a fair market price
· has financial problems
· has high carrying costs on the property
Do these characteristics describe the property?
· carries a lot of equity (25% or more)
· unique — enough market interest to encourage competition
· burdening the owner with high carrying costs
· vacant — vacant properties may encourage vandalism
· difficult to appraise — unique properties are difficult to appraise