Auctions Help Realtors(R) Move Property in Today's Real Estate Market

WASHINGTON, May 15 /PRNewswire-USNewswire/ -- In the past, real estate
auctions have been used to sell off distressed or foreclosed properties
that didn't sell using traditional methods. Today, auctions are growing in
popularity as an effective way to market and sell all types of properties,
from residential and upscale homes to land and commercial buildings.

Realtors(R) shared ways to blend auction services into core residential
real estate businesses during the Auction Forum today at the National
Association of Realtors(R) Midyear Legislative Meetings & Trade Expo.

"Realtors(R) add value to the real estate transaction - they are
experts at managing complex home buying and selling transactions, and
auctions are no exception," said NAR President Dick Gaylord, a broker with
RE/MAX Real Estate Specialists in Long Beach, Calif. "Successful auctions
require that buyers be well-informed about the auction process and home
they will be bidding on. Realtors(R) can help buyers navigate this complex
process."

The real estate auction market rose 5.3 percent in 2007, generating
$58.4 billion in revenues. That's up 39 percent from 2003, according to the
National Auctioneers Association.

"Auctions offer clients an opportunity that differs from conventional
transactions," said Realtor(R) Lynn Gardner, 2008 chair of the NAR Auction
Forum. "There are many benefits to home auctions - an auction creates
urgency, which helps draw attention to the property, market value is
determined quickly, homes typically sell faster and close within 30 days,
and there are no contingencies or holding costs."

Listing agents who are interested in introducing the auction method to
their clients should first identify an auctioneer or auction company and
develop a relationship. "The listing agent, auction specialist and client
can all work together, to everyone's benefit to get the home sold as
quickly as possible, and for the best price," said Gardner.

Realtor(R) Tag Craig, 2008 vice-chair of the NAR Auction Forum,
explained that whether an auction is conducted online, on the steps of the
property, or "ballroom style" with multiple other properties, the process
is often the same.

"Sellers, their listing agents and auction specialists will work
together to determine the home's market value, the auction type and how the
auction will marketed. Homes are commonly marketed for four to six weeks
before the auction through print ads, online, e-mail notifications, press
releases, information packets and neighborhood signs," said Craig.

According to Gardner, buyers are invited to attend open houses and
inspect the home before the auction begins. Homes are sold in "As Is"
condition however known defects must be disclosed. The auction can be
absolute, in which the property is sold to the highest bidder regardless of
the amount, or a minimum or reserve price may be set to begin the auction.
Depending on the type of auction, the bidding will end after a set time
limit or when the reserve price is met or exceeded. Sellers usually have
the right to refuse any unacceptable bid.

Earlier this week, Realtors(R) were able to attend the "Introduction to
Real Estate Auction" course, a new course offered by the Real Estate
Buyer's Agent Council, an NAR affiliate that focuses specifically on the
real estate buyer. The course helps Realtors(R) understand and utilize the
auction method of marketing and identify properties and sellers that are
good candidates for real estate auctions. It also provides guidance on
establishing alliances with auction companies or setting up an auction
division within your company.

The National Association of Realtors(R), "The Voice for Real Estate,"
is America's largest trade association, representing 1.2 million members
involved in all aspects of the residential and commercial real estate
industries.



Information about NAR is available at http://www.realtor.org. News releases
are posted in the Web site's "News Media" section in the NAR Media Center.

REALTOR(R) is a registered collective membership mark which may be used
only by real estate professionals who are members of the NATIONAL
ASSOCIATION OF REALTORS(R) and subscribe to its strict Code of Ethics. Not
all real estate agents are REALTORS(R). All REALTORS(R) are members of NAR.



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Source: Real Estate Newswire