Auction market: Growing, growing strong
Market segment too big for agents to ignore
For the price of a used car, you can buy a house or a chunk of land on the Internet without leaving your desk.
A four-bedroom, two-bathroom home in Cleveland recently sold for $6,050 on eBay.
Not all properties are going as cheaply at auctions, but the market itself is certainly growing as an efficient way to move properties that otherwise sit on the market for months and months.
Nationally, the market for real estate live auctions grew about 5.3 percent in 2007 to $16.8 billion, the National Auctioneers Association reported, and a total of about $58.4 billion worth of all types of real estate was sold in live auctions during 2007. Also, the gross revenue of residential real estate sold at auction grew 39 percent from 2003-06.
This three-part special report dives deep into the world of property auctions. Learn how big the market is, how agents are participating and finding business, and how the online market for auctions functions.
The report also includes a video with footage from a recent live auction event in Northern California.
Part 1, Auctions raise volume on property sales, takes a look at how large the market for home auctions has grown in recent years as the traditional market for home sales has plummeted in many areas. Hear from buyers, investors and real estate agents who've attended recent live auctions that can draw thousands of people looking for the next big real estate deal.
Part 2, Auctions too big for agents to ignore, highlights ways agents can find business in the auction market as well as use these events as another selling tool for tough-to-move properties. This article explains how auctions differ from typical sales and how commissions are typically handled by auction companies.
Part 3, Internet auctions open pool of buyers, highlights companies that offer online auctions of properties, how they can differ from live auction events, and pros and cons of bidding online. Sites like eBay offer Internet-only auctions of homes and land, and some live auction companies have incorporated online technologies to allow Internet-based bidding on properties.
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