Greenville Business Magazine 2010 July issue : Page 17
››industry trends Home Auctions Fill a Need BY MARY ANN HESTER PHOTOGRAPH BY OLIVER YU FOTOGRAPHIE Darron Meares T he most common things blooming in yards in Greenville are “For Sale” signs. In addition to the houses that did not sell over the winter, more real estate companies and “FSBO’s” dot the landscape in every area of town and are the only things that do not seem to mind the heat. But there may be a new way to turn up the heat on a sale. These days it takes new and creative ways to sell a house. Actually, auctioning property is an old way to sell a house – but the parameters have changed. According to Darron Meares of Meares Auction Group, it used to be that an auction meant “the homeowner was bankrupt or it was a ‘fire sale’ for some reason.Or it was an ‘absolute’ auction, meaning that it sold to the highest bidder.” Even online the myth persists according the Dana Kaufman of Proxibid.com “the biggest misconception is the properties being sold at auction and online are in distress…. [Not so, as] a lot of our online real estate success has been with trophy properties.” This is reiterated by Christie King of J.P. King/C King Benefit Auction. “Barbara Mandrell had her log home outside Nashville for sale for 3-4 years. We stepped in and had a two week open house and sold it during that time for a very fair market price.” But what if it is not a fire sale or a celebrity piece of real estate? Auctioneers market your property and there are some costs for the seller. One auctioneer says, “we put your property on a pedestal and come up with an advertising campaign designed for you.” They can reach a wide audience online or a targeted one with specific zip codes. Auctions are a moment in time, so before you consider auctioning your property you have to be ready to let go of the property the day of the sale if the reserve is met. If the reserve is not met, then it goes into a realty situation. Meares explains, “In South Carolina, the real estate law says that you must hold both an auctioneer license and a real estate license to sell. Many properties do not sell the day of the auction and must be JULY 2010 | GREENVILLE BUSINESS MAGAZINE 17
>>industry trends - Home Auctions Fill a Need
Mary Ann Hester
The most common things blooming in yards in Greenville are “For Sale” signs. In addition to the houses that did not sell over the winter, more real estate companies and “FSBO’s” dot the landscape in every area of town and are the only things that do not seem to mind the heat.
But there may be a new way to turn up the heat on a sale. These days it takes new and creative ways to sell a house. Actually, auctioning property is an old way to sell a house – but the parameters have changed.
According to Darron Meares of Meares Auction Group, it used to be that an auction meant “the homeowner was bankrupt or it was a ‘fire sale’ for some reason. Or it was an ‘absolute’ auction, meaning that it sold to the highest bidder.” Even online the myth persists according the Dana Kaufman of Proxibid.com “the biggest misconception is the properties being sold at auction and online are in distress…. [Not so, as] a lot of our online real estate success has been with trophy properties.” This is reiterated by Christie King of J.P. King/C King Benefit Auction. “Barbara Mandrell had her log home outside Nashville for sale for 3-4 years. We stepped in and had a two week open house and sold it during that time for a very fair market price.”
But what if it is not a fire sale or a celebrity piece of real estate? Auctioneers market your property and there are some costs for the seller. One auctioneer says, “we put your property on a pedestal and come up with an advertising campaign designed for you.” They can reach a wide audience online or a targeted one with specific zip codes.
Auctions are a moment in time, so before you consider auctioning your property you have to be ready to let go of the property the day of the sale if the reserve is met. If the reserve is not met, then it goes into a realty situation. Meares explains, “In South Carolina, the real estate law says that you must hold both an auctioneer license and a real estate license to sell. Many properties do not sell the day of the auction and must be listed in the traditional manner. We also work with real estate agents. Most auctioneers pay commissions to brokers and agents who bring a buyer…it would be ridiculous not to!”
The auction process is fast – most auctions close within 30 days of sale, so be sure you have somewhere to go! Another positive note is that most auctions sell “as is,” which can mean anything from shag carpet to beautiful stain glass windows.
If you have had a house for sale for a while, wouldn’t it be nice to think that you could be out in 30 days?
Auction Terms You Need to Know
Absolute Auction An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve.
As is Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection.
Auction with Reserve An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed.
Buyer’s Premium An advertised percentage of the high bid or flat fee added to the high bid to determine the total contract price to be paid by the buyer.
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