1. Real Estate Auction: The Opportunity Defining real estate auction Discussing growth of this niche Identifying benefits Explaining how agents can work with auction firms

What Is Real Estate Auction? Intense and accelerated real estate marketing process that involves the public sale of property through competitive bidding

What Is Real Estate Auction? Effective way to: Convert real property into cash Turn unwanted property into liquid assets Achieve a sale in a specified time frame

What Is Real Estate Auction? Was typically regarded as sales method of last resort for residential properties in distress

What Is Real Estate Auction? Auction beneficial for many types of real estate: New-home construction Luxury and vacation homes Agricultural land (farms, ranches, and orchards) Commercial real estate

Fast Growing Business Niche Auctions are on the rise: From 2003 to 2007, residential real estate auctions grew 46.6%. Land and agricultural real estate grew 36.3%. In 2007, real estate auction as a whole generated more than 58.4 billion dollars in sales. Source: National Auctioneers Association

Benefits to Seller High seller holding costs are eliminated. Seller sets terms and conditions. Property sold at true market value Seller knows when the property is expected to sell.

Benefits to Seller Reduced time to market and show property Large number of pre-qualified buyers Competition among buyers Buyers make a firm decision about the property.

Benefits to Buyer Motivated seller Reduced time to purchase property, incl. negotiations No contingencies Favorable financing possible

Benefits to Buyer Exciting method of purchase Fairly and open competition Buyers—not sellers, agents, or appraisers—determine property's fair market value.

Benefits to Agent Opportunity to earn commissions Expanded services to sellers and buyers Properties exposed to large pool of qualified buyers Properties sold within short period of time Referrals and repeat business

How Agents Can Work with Firms Referring agent/broker refers a seller to auctioneer, then receives a referral fee. Listing agent/broker markets property and represents seller during sale and closing. Buyer's agent/broker registers buyer who buys property at auction and earns a commission.