Posted by Natalie-VA on October 22, 2005 at 12:53:50:
David,
I wouldn’t think that you need a RE Salesperson or even a licensed auctioneer if you were auctioning properties that you have an interest in.
I think auctions work best in a seller’s market. I’m not so sure about the results in a buyer’s market or balanced market.
It’s really just a method of selling property…I wouldn’t use it for your business model since it might not be the best solution in all scenarios.
It sounds like maybe you are looking for ways to beat the competition by operating off narrower margins. If you choose that for your business model, just be aware of the risks. There are very often unexpected expenses.
Hey, the best way to find out would be to research a couple of properties coming up at auction in your area. Decide what you think retail value is and then attend the auction and see where the bid goes.
Auctions…can this be the way to go? - Posted by MichiganDavid
Posted by MichiganDavid on October 21, 2005 at 13:32:23:
Hi there,
My initial strategy is to find undervalued homes, spruce them up and then hold an auction myself for a quick flip. My strategy is one of smaller returns per repetition, but more repititions.
Does there need to be a Real estate salesperson involved in this transaction?
Has anyone else tried this method, as opposed to buying at auction and THEN flipping (too much competition it would seem to me)?
I would think that if a person had a little capital and the right lender (I have both) that you could do this and really speed up the process by calling for a 30-day close for the winning bidder. One could actually, if really done right, have several rehabs going at once and hold several auctions on a Sunday afternoon.
Anyone know of a resource that shows the details on how to set up your own house auction w/o using an auction company?
Sorry for so many questions and thanks in advance.