Real Estate Auction CE Class (edit/delete)
I developed and teach an accredited CE elective class Fundamentals of Real Estate Auctions throughout North Carolina. Why? Because one of the foundations of the company I founded (AuctionFirst.com) is working closely with real estate agents and we found most are clueless about auctions and need/want education on the subject.
The class is a blast to teach and, judging from student comments, really fun to attend. If you can get a class of about 15-20 agents together for this topic, I'll be glad to come to your area and teach it at your facility! Cost of the 4 hr CE class is $69/student.
The classes are intentionally kept small and often held at upcoming auction properties. We do several mock auctions during the course of the class so that you have a good feel of what a live auction is like.
Here are the next 3 classes scheduled:
Wed April 6 from 1-5 pm at 7732 Kings Way Court, Wake Forest, NC 27587
Wed April 15 from 1-5 pm at 3608 Knightcroft Place, Fuquay-Varina, NC 27526
Thurs April 16 from 1-5 pm at 848 Queen City Crescent, Apex, NC 27523
Register online for the classes at http://www.edzing.com or call me at 800-220-6760.
Real estate auctioneers are generally a great group of folks whose work is super hard but fascinating - seek one out, take them to lunch and make friends. You'll be glad you did.
Agents are quickly learning how to work short sale deals. But conventional real estate has limitations in this area mainly because when the banks take forever to make a decision, buyers get impatient and walk away from the deal.
Auctions are a perfect match with short sales and here's why:
1. The auction terms can require a high enough deposit that no one would ever walk away from. Our last short sale had a deposit of $24,000. The buyer did get impatient, but didn't want to lose that much money.
2. The auction creates competition. Banks like the fact that the aggressive auction marketing methods bring more than one buyer to the table. There's nothing worse than being in a buyer's market and having a buyer be in total control of the deal because they can. My job as a professional auctioneer, broker and marketing expert is to make sure the seller remains in control over the terms and conditions, create a sense of urgency and competition, and find more than one buyer in less than 30 days using accelerated marketing methods that are very aggressive.
3. In order to have a short sale, you need a buyer on contract. Accelerated auction marketing can bring buyers forward in 30 days and get them on a contract that has no contingencies for financing or repairs. Then the waiting game starts.
If you have a client that needs a quick sale and their circumstances lend towards a short sale, consider taking the property to auction to get the highest price possible in the shortest period of time.
Need someone to verify this information...
I'm a professional real estate auctioneer and recently attended an REDC auction in Raleigh. When it was over I introduced myself to the bid-caller and asked a few questions. He told me that their company actually owned the assets they were auctioning. Evidently they buy large portfolios of RE from banks, then resell at their own huge ballroom auctions.
What's not apparent is the percentage of auctions that actually close. This bothers me the most. Newspaper reporters attending these auctions always breathlessly write about the super low sale prices at auction. But how many of the bids were confirmed and closed?
He also said that he was bidding against some of the bidders in order to get the price to a certain percentage of the reserve price. Bidding on behalf of the seller is allowed by state law in NC as long as it is fully disclosed to bidders. But I don't remember them announcing that. And you can imagine that if they did make that announcement, buyers wouldn't be thrilled.
I suspect they sell a LOT of properties with these large events. But also that a lot of the bids don't get confirmed. That seems to be the case because they always come back through and put up the same properties for auction again.
So just a note of caution: The REDC auctions are not always what they seem to appear.
Met an appraiser recently and asked him how accurate zillow values were. He felt zillow did a good job and that it was one more helpful data point.
A home I'm auctioning in Richmond shows a value of $272K for a home with an assessed value of $191K. The zillow value has skyrocketed in the past 30 days by almost $30K. What's with that?
What are your thoughts on zillow values?
Banks in the Southeast are starting to call construction loans on builders they've worked with for years. It's creating havoc for builders who are already dealing with huge inventory and financial challenges. I'm not talking about the big national builders here, but the long-time regional and local custom builders who have great reputations.
Just listing a property on MLS isn't getting the job done. And continually reducing the list price in order to "find" the market isn't working because buyers are sitting on the fence waiting to see what happens.
We're getting more and more calls from builders for an auction. The totally "get" the fact that auctions create a sense of urgency. And the seller can remain in control of the terms and condition while setting a floor price.
Our first builder auction is coming up on Saturday, April 25 at 10 am. We'll auction 9 new luxury townhomes in Apex, NC. Already in the first 10 days of marketing, we've compiled a list of over 70 prospects. It sure helps that the project is across from a major shopping center so the drive by traffic is huge.
There will be a huge tent on auction day and no doubt a lot of watchers. Among the watchers will be at least two bank officials who want to see how it works. They are local and regional banks and they're looking for an option for moving REO off their books at the highest price possible in the shortest time frame.
I'll update once the auction results are known.
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Professional real estate Auctioneer/Broker/Realtor. I auction all types of real estate in NC, VA, MD, TX and teach accredited CE classes on real estate auctions for agents.
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