How To Buy or Sell Property At A Real Estate Auction – Agents Real Estate

If you ever wondered how to buy or sell property at a real estate auction house, then keep reading…Real estate auctions are not a new type of real estate sale. They have been around for many years.Auctions and the real estate agentReal estate agents may sometimes recommend a property be placed for auction rather then listing it in a local Multiple Listing Service, typically referred to as the MLSMany agents are not aware that when recommending a property be sold at auction, they can continue to maintain a working relationship with the seller. A real estate agent can continue to assist a seller by:
Being present during meetings with the seller and auction house
With draw the listing and receive a referral from the auction house
Provide the auction house with property, mortgage and seller information
Typically, the real estate agent will retain the seller as a long term customer by assisting to sell the property quickly and provide advice through out the campaign.In addition, buyer representatives can receive a commission on the sale of an auctioned property by submitting a Brokers Participation Agreement to the auction house.There may be many benefits of selling a property at auction which may include:Properties sold with clear titleWhen properties are sold, a title search is performed to verify and validate that there are no outstanding liens, judgments or other issues that can “cloud” a title.Selling or purchasing property quicklySometimes, a property may be sold quicker then placing it for sale with a real estate agent. Many factors affect the time to sell a property, which may include: market conditions, property condition, urgency, probate and others.Selling a property “As Is”When a property is sold through auction, it is considered an “As is” sale. This means the sale will occur with no contingencies or negotiations. No repairs will be done, simply sold “As is”.Seller sets the terms of the saleThe seller of a property available for auction sets the terms of the sale. These terms include the auction being an Absolute or Reserve Price sale.Absolute – An absolute auction is one where a property is sold to the highest bidder, no matter the price. Sometimes sellers may benefit from receiving more then they were hoping; other times they may receive less.Reserve Price – A reserve price auction is one where the seller places a reserve price on the sale of the property. If no bids meet the reserve price, the seller may not sell the property.The seller is motivatedBuyers know that when a property is available for Absolute sale, the seller is motivate. This may work in both the seller and buyer’s favor.The buyers are qualified and committedSellers know that when a buyer attends an auction, they are ready to buy. Many auctions require buyers present a buyers fee prior to the auction taking place. Only attendees who have paid the buyers fee, may actually bid on a property.Buyers control the price they payBuyers may receive benefit from an auction by purchasing a property for less then an appraised value.The Auction ProcessThe process begins by making the decision to auction the property. Next, either a real estate agent or the seller contacts an auction house. An auction representative will interview the seller and gather and present information regarding the ability to auction the property.Some decisions made during this time include:Marketing Fee – This fee is typically paid by the seller as an up front cost and may be based on analysis by a specialized marketing team.Auction type – Either an Absolute or Reserve price auction decision must be made.Sellers’ expectations – Terms and conditions of the sale, Sellers expected price, time frames and fees.Once all agree the property is a valid auction candidate and the type of auction is decided, the auction date is established. The auction house will then begin to market the property which may take 4-6 weeks.During the marketing campaign and before the auction, buyers are able to perform their due diligence. They can schedule inspections, appraisals as well as view the property.SummaryWhile real estate auctions may not be for everyone, they do provide alternative methods which may benefit both buyers and sellers.When a Real estate agent recommends a property for sale, they can remain involved in the process, receive referral fees and continue to provide quality customer service to their customers and clients© Copyright 2008 Jennifer MacKay.

Real Estate Leads 101- Don’t Do This! – Agents Real Estate

So you know different ways to follow up with your real estate leads, you even know when to do it and how often. What you may not know are a few things that you should NEVER do with your real estate leads, no matter what.You don’t ever want to TRASH your real estate leads. No matter what information may seem fake, it is up to you to follow up and track down the lead in order to help them out. If you want business, you will take the time to thoroughly follow up with your real estate leads.Don’t give up after a short amount of time. So in the past month you’ve called the lead 10 times, e-mailed them 20 and sent out 2 different information packets. You’ve gotten no response yet. Please understand that YET is the keyword here. Just because your real estate leads don’t respond after a month, doesn’t mean it is a bad lead, it simply means the lead isn’t ready to deal with an agent. You need to show them that you will be there for as long as it takes and you will help them with anything they need. Continue to follow up, call, mail, email and if you haven’t, you should DEFINITELY stop by the property and try and introduce yourself. The best way to get a feel for a person is to meet them face to face.Do not EVER be rude to your real estate leads, no matter how ignorant they are to you. Some people are just nasty, period. That doesn’t mean you have to be nasty back, if anything, you should be even NICER, because you will always catch more flies with honey than salt. If your real estate lead was looking for information just because, don’t yell at them for wasting your time. Treat them as if they have a million dollar home you’re trying to get the listing for – you never want to burn a bridge when it comes to real estate leads. Today’s pain the butt may wind up being tomorrow’s $10,000 commission.Don’t be too immovable or rigid in your dealings with your real estate leads. If a lead wants to negotiate your commission, then negotiate. Because it is almost guaranteed that if you’re not willing to work with them, they can easily find someone else who will. For example, I knew an agent who turned away a lead because the homeowner wanted them to sell their home for a 1% commission to match what a Help-U-Sell office offered to sell for the lead. The agent turned the lead down flat because 1% wasn’t worth her time. Later, I found out the home that was in question could sell for close to a million dollars! Even at a 1% commission that’s almost $10,000. And who knows what kind of referrals the agent could have gotten from the homeowner for being so flexible. But the agent was more worried about what she considered “worth her time” and wasn’t concerned about servicing her real estate leads.Finally, don’t ever treat your real estate leads like money bags. People can see through a greedy agent in a heartbeat. If you’re only there for the money, your lead will see this and will move right on to the next agent. Real estate isn’t just a sales position, it is a customer service position as well. Because it’s such a popular field, there’s always another agent there to take your real estate leads right out from under you if they catch you slipping and your real estate leads have PLENTY of options if they decide you’re not the one for them. The important thing is to keep in mind that they are people who need your expertise to see them through a complex and confusing process, but you aren’t the only one who can help them. You want to treat your real estate leads with the same respect and attentiveness you would give to someone who just listed a multi million dollar home with you, because when it comes down to it, you are there to work for THEM.