The sale of real estate in North America through auction has been in existence for over a Century. The widely accepted definition of a real estate auction is "The sale of real property through a competitive bidding process".
In 2007, nearly $270 billion of goods and services were sold using the auction method with real estate being the hottest sector, accounting for close $65 billion.
With the recognition of the importance of ongoing interest costs and the loss of return on capital locked up in idle assets, auctions are quickly becoming a preferred choice for the disposition of real estate.
An auction is an event where bidders can participate in an open competitive bidding process to purchase real estate on a pre-determined date. Sellers have the opportunity to obtain not only a willing buyer, but the best of all willing buyers. The auction method typically produces an offer within 30- 45 days from signing the auction listing contract that will represent the best price the market will offer.
Troy Fowler Lic. Real Estate Auctioneer (#AU3595, #AB2717, AARE, CES) & Lic. Real Estate Broker
REO Properties
An REO (Real Estate Owned) is a property that goes back to Lender after an unsuccessful foreclosure auction.
With regard to REO properties, the Bank now owns the property and the mortgage loan no longer exists. The Bank will handle the eviction, if necessary, and may manage some of the repair process.
Selling REO's
Each Bank/Lender manages the REO process based on guidelines that are individually defined, but they all have similar goals. They want to get the best price possible and have often negotiated to achieve the highest possible price. However the market and expectations of Asset Managers may vary as inventories have increased and markets have slowed.
Property Condition
Banks always desire to sell a property in an "as is" condition. You may choose to hire professional inspection companies to determine the condition of the property. This is usually done to assist a potential bidder to better understand the highest price they are willing to offer based on the condition of the property.
The Auction Method Advantage
Banks are increasingly partnering with auction firms to offer multiple properties through the auction process. Depending on the property, location, condition, number of bidders etc., auctions can be an excellent method to purchase real estate.
With an increased shift in problem loans and bloated inventories in the commercial sector, Auction Generation has partnered with two Senior Commercial real estate veterans to provide expertise in the disposition of real estate through the auction process.
With close to 50 years of combined experience in the commercial markets, Auction Generation can now offer full service capabilities in helping owners of commercial properties as to how best sell properties through the auction method.
Our consultants are highly experienced in office, industrial, land, retail, apartments and warehouse properties. Their combined experience includes academic achievements, otherwise known as (CCIM)
Click here for more information.
Troy Fowler
Lic. Real Estate Broker
Lic. Real Estate Auctioneer (#AU3595, #AB2717, AARE , CES)
With our total commitment toward auctions as a primary means of the disposition of real estate, we have decided to change our company name so that it reflects our business strategy and goals.
Auction Generation is committed to working with sellers and buyers to provide the highest level of service and sales results through the auction process. We continue to partner with Realtors to make deals happen through auction and strongly encourage realtor participation. Our firm is one of few that almost always compensates Realtors 3% for bringing the high bidder that closes on one our auctions.
We look forward to continuing to serve our clients and grow our business utilizing the auction method as the most effective alternative to sell real estate in today's market.
Please call me at 305 206 0349 for more info about the Auction Process.
Troy Fowler Lic. Real Estate Auctioneer (#AU3595, #AB2717, AARE, CES) & Lic. Real Estate Broker.
With no signs of letting up, the real estate market continues to be singled out as one of the primary reasons that have contributed to our current economic situation.
With the amount of inventory on the market, predictions of further price declines and fewer and fewer qualified buyers, auction offer multiple benefits to move your property faster and to buyers that are able to close quickly. These benefits include:
.By reducing the time a property is on the market, the seller reduces on going carrying costs
.At auctions, properties are sold "as is"
.Properties sold at auction are usually sold with no contingencies, helping to almost guarantee that the property will close.
.Closings that almost never exceed 45 days from the auction date.
.Multiple bidders competing for your property
.Commissions that are paid by the buyer, otherwise known as a buyer's premium
.Creating a highly intensive and well planned marketing campaign to ensure that as many qualified bidders are bidding on auction day.
These are just a few reasons why an auction just may be your best choice to sell your property, so that you are able to move forward and retrieve the highest value that the market is willing to pay on auction day.
Please call us if you have any questions or would like to discuss how an auction could work for you @ 305 206 0349
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Troy’s business background as a Lic. Auctioneer (AARE, AU3595, AB2717) and Lic. Real Estate Broker make him an excellent choice to work with when seeking maximum results.
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