The public auction, a relatively old method of selling real estate, has experienced a widespread revival in recent years. Increasingly large numbers of Realtors, developers, and private individuals are turning to the professional auctioneer to quickly and effectively handle their real estate transactions. Real estate purchasers are becoming more aware of the auction sale, which is rapidly developing into the secondary real estate marketplace. Realtors should be familiar with the basic types of auction sales, and the procedures and advantages of buying or selling at auction. Auction promotions provide maximum exposure for listings and, when properly conducted, will produce top dollar prices in a limited period of time.
Time is perhaps the strongest motivation for a seller to consider the auction method.
A normal real estate transaction at auction can take as little as two weeks. A difficult listing, or a sale contingent on the sale of a client's old home may be perfect situations for public auction. Job transfers, divorce situations and estate related listings might also be appropriate for auction. Many Realtors are unaware that auctioneers are willing and eager to cooperate on sales commissions. A referred listing is handled in the same manner at auction as it is in a privately negotiated sale.