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Daily Real Estate News  |  November 11, 2006  |   Auctions No Longer a Last Resort
Imagine getting a listing and, with a little bit of legwork, having it under contract within nine to 12 minutes. That’s typically how long it takes to sell a property at auction. A panel of auction experts told attendees of the Auction Forum on Friday that successfully incorporating auction services into their real estate service offerings can give them a competitive advantage with clients — and get their listings sold.

By the end of this year, residential and commercial real estate sold at auctions is expected to reach $260 billion, according to Bill Sheridan, president of the National Auctioneers Association. These days, auctions are another marketing option — “not a last resort,” Sheridan said.

“The biggest misconception is that auction companies are our competition,” said Tracey Clay, a sales associate with Clay & Co. in Destin, Fla. That's simply not true, she said. Auctions give practitioners an edge over competitors and puts an alternative sales technique on the table for her sellers.

But auctions should be used with the right property and the right sellers, cautioned Clay. Auctions work well on unique properties or very high-end properties, she said.

If sellers need to sell quickly and close in 30 days due to financial problems or a move, then auctions may be a viable option to sell their property.

Panelists said that in a real estate auction, sellers typically pay for the marketing costs of advertising the property but they don’t pay the listing agent’s commission, which is generally paid by the auction company.

“Times have changed,” Clay said. “This is not 2004. In 2004, I wanted more listings. Now, I have too many listings and not enough buyers. Auctions can get your listings sold and make your clients happy.”

— By Haley M. Hwang for REALTORŪ Magazine Online

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