1. 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

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

3. 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

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

5. 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

6. 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

7. 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.

8. 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.

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

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

11. 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

12. 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.