Posted by JT-IN on April 13, 2004 at 16:15:21:
rm:
Once in a while prices at the local Sheriff Sale auctions go out of sight… and I jokingly will say to the Sheriff… “Is there any way that I can sign up (voluntarily) some of the properties that I already own, for the Sheriff Sale auction…?” Seems like a darn sure way to profit in the RE business… the way that some of these idiots bid on these houses…
JT-IN
What to tell the auctioneer? settting up auction - Posted by Dan
Posted by Dan on April 12, 2004 at 17:37:42:
of my L/O What does the auctioneer want to hear?
Dan
settting up auction Pt 3 - Posted by Steve(WI)
Posted by Steve(WI) on April 12, 2004 at 19:40:59:
It’s customary in most places that the seller pays all advertising costs. You are the one who has to sell something. The auctioneer is paid only for his skills to market and sell it for the highest price possible.
And yes, the auctioneer will want a minmum fee regardless of if the house sells or not. BTW, a “No Sale” is really only probable in a reserve or minimum bid auction. At an absolute auction the property is sold to the highest bid, period. Now if nobody bid anything it could be a No Sale, but that’s highly unlikely. The auctioneer will put time into figuring out when, where, and how to best market the property. This includes some market research, writing ads/flyers, placing ads, circulating flyers, etc. That eats up alot of time. (HINT: Find an auctioneer who specializes in real estate.)
And last, but most important, as Ed Copp says, “He’ll want a quick, clean close.” In some states there’s a “Maximum Settlement Period” in which time the auctioneer must see that the seller gets all monies owed.
settting up auction Pt 2 - Posted by Steve(WI)
Posted by Steve(WI) on April 12, 2004 at 19:39:21:
The reason an auctioneer never wants a minimum or “reserve bid” is really quite simple. Ever hear the phrase,“The first one to name a number loses”? An auction is nothing more than open negotiations. If buyers know the minimum is $55,000 what amount will they bid at? You have established your lower price before things even get started. You may get more, but not alot more. If someone bid too much more than the minimum, they would feel they overpaid. If they feel the property is worth more than you do and there’s no minimum, they can feel free to bid as much as it’s worth “to them”.
Re:settting up auction Pt 1 - Posted by Steve(WI)
Posted by Steve(WI) on April 12, 2004 at 19:37:46:
As an auctioneer myself, I can tell you what I’d want. As a business person I want to be sure I can’t be held negligent or liable for anything. Like title problems, faulty wiring, bad plumbing,etc.
Re: He wants to hear - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on April 12, 2004 at 19:04:34:
That you have the right to sell this house, which you do if your paperwork is correct.
That there will be no minimum bid. Something that you most likely can not go along with.
That you will pay all advertising even if the house does not sell. He is very likely to hold tight on this issue.
He probably wants a minimum fee even if the house does not sell. He might negotiate.
He wants a good clean closing, with no title issues. This may be difficult to guarantee if you have not yet run title on the house that you do not own yet.
Let us know what happens.
Bring $200K worth of gooies to Sell? - Posted by Dan
Posted by Dan on April 15, 2004 at 01:04:49:
Use the house as a stage to sell estate items art statues etc.? Could that work for you. Maybe no expense to the home seller i.e. you pay the marketing.
We split profits on your goodies and I pay You some percent on the posible sale of hte house. And ofcourse you make the money on the buy so I don’t invite you over unless we both know it is a deal that will sell?
I No Nothing about these… - Posted by David Alexander
Posted by David Alexander on April 12, 2004 at 21:11:34:
things…
So, a couple questions…
Is there a way to auction houses that you can protect yourself… Steve is saying No minimum bid…
But, hey… If you have an underlying… You know that could be dangerous… Guess it comes down to good marketing…
Can you hold an auction yourself without an auctioneer… ??
I was talking to Lou Brown awhile back… he told me this is the wave of the future…
Here in Dallas… it is definitely an area or idea I need to explore… as the market is being flooded by foreclosures and the builders are still building…
David Alexander
Re: I No Nothing about these… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on April 13, 2004 at 16:08:06:
Must depend on the area. In my county I’ve attended a few auctions over the years…have been the winning bidder on a couple. Plenty of attendees, but most just stand and watch. However, in both the ones I won (way under FMV) there was no sale because my bid was supposedly below the reserve, which wasn’t disclosed at all.
Brian (NY)
Minimum Bid at Auction - Posted by JT-IN
Posted by JT-IN on April 13, 2004 at 05:23:48:
David:
A minimum bid at auction is simply called a reserve bid auction. Most Auctioneers hold them, as long as the intended minimum is reasonable and they feel that they have a reasonable chance of obtaining the “reserve”. Most times you do not state this amount in advance, but “incinuate the amount” so that the auctioneer has some semblence that they aren’t peeing in the wind toward a paycheck…
Yes, auctions are a very effective way to market property. I have had some success at selling property for an amount far in excess of what you would have been able to obtain in a standard offer approach… but when “auction fever” takes over, folks are apt to pay ridiculous prices for something today, that they could have bought yesterday for far less… Definitely check these out…
Hope all is well in Dallas…
JT-IN
You’re not kidding - Posted by rm
Posted by rm on April 13, 2004 at 08:18:19:
There was an auction last week, I think properties held by Citi, or Chase. These properties had been up and down and off and on the MLS, and hadn’t sold.
Some other investors arrived late at the REI meeting, having attended the auction. Every property they mentioned sold in excess of what they were willing to pay, which was in excess of what I would have been willing to pay.
I’m thinking of rounding up some junkers, tying them up with options, and contacting the auctioneer about including them with the next go-round.
Not sure if they’d go for it, but why not?