Real estate auctions are growing in popularity, in fact, they have more than quadrupled since 1980 and account for 30% of all real estate sales today. The ideal real estate sale would be one that sold the property quickly at a price that both seller and buyer considered fair, and also paid the real estate agent a fair commission.

Real estate auctions are successful because they change the direction in several key ways

• From waiting for an offer to stimulating the market to an offer
• From reducing the price (negotiation) to building a price (bidding)
• From valuing only price to valuing the time involved in getting an offer
• From competition among properties to competition among buyers

Establishing a definite sale date creates a sense of urgency that increases buyer interest. The pressure of a deadline can push bidding considerably higher than the price of a traditional listing. A real estate auction often gives the seller cash more quickly than a negotiated sale. Having dollars in hand to invest in other ways can make a quick sale worth more in future gain than a sale prolonged by lack of market interest, contingencies or negotiation.

Buyers like the fair competition that real estate auctions provide. They have an opportunity to inspect the property before they bid as well as time for due diligence. Buyers like saving time negotiating on properties they may not end up purchasing.

Market

• Dull markets, in which similar real estate is not selling
• Changing markets, in which there are no reliable benchmarks for setting price
• High demand markets, where no comparables exist
• Emerging markets, such as subdivision openings or closings

Seller

The need for a quick sale or immediate cash make an auction preferable for

• Foreclosure or bankruptcy
• Partnership or marital dissolution
• Estate liquidation
• Retirement and relocation

Property

• Vacant properties
• Properties with substantial equity
• Unusual, unique or high demand properties

Bob Johnson Auction & Realty, Inc. welcomes the opportunity to discuss your situation and help you determine how a real estate auction can help sell your property quickly and at a fair market price. Please phone Bob Johnson at 888 551-8134 to discuss your situation and help you determine how a real estate auction can help give you

"THE AUCTION ADVANTAGE"

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