If you would like to have some fun, get excited, and raise your heart rate, you should be sure to attend an advertised Auction near your home or place of business.

The Auctioneer is hired to advertise, market, manage the auction process and secure the best financial return for the seller by offering either personal property and/or real property for sale via free, open and competive bidding by a large group of highly motivated prospective buyers.  Usually, these hightly motivated buyers/bidders who attend the auction,  bid their dollars until the item or subject matter they are bidding on is sold to the highest bidder. There is nothing like competition to make the price go up, up and away!

Several years ago, a good friend of mine, who was a real estate broker at the time,  had the opportunity to buy four new townhomes for Sixty Thousand ($60,000.00) Dollars each. These townhomes were REOs (real estate owned) directly from his bank. REOs, in the real estate vernacular, represents real property which is currently owned and managed by the bank and/or mortgage ender due to a mortgage default/foreclosure of the borrower/owner.  REOs may also be called and or referred to as Real Estate Opportunities by those individuals who attend and bid at the auction. My friend learned that the bank was going to offer the four townhomes for sale, via a real estate auction, and hopefully sell all of the townhomes all in one evening and therefore would alleviate the cost of advertising, showing and managing the properties.  Once at the auction, my friend got excited and began bidding against other propsective buyers in an effort to purchase the four
townhomes.  My friend got so excited and so competitive that he actually ended up buying all for townhomes for $64,000.00 each.  When I ran into my friend and his wife at the mall the following week, I asked him if he bought the four townhomes from the bank.  He told me that he decided not to buy the four townhomes and that he was going to wait to purchase a four unit apartment building.  My friend’s wife spoke up and told me that her husband and my good friend, who was an experienced real estate broker and investor, did indeed purchase the four townhomes and that he paid $16,000.00 more at the auction than he could have paid if he purchased the four townhomes directly from the bank as REOs.

The moral of the story is, that if you would like to sell your personal and/or real property for more money, sell it at the auction.  Several
studies that have been conducted by research personnel at several large Eastern universities have documented proof that a competitive auction with a large number of qualified buyers/bidders will always produce more money for the seller. Good luck when you attend your next Auction!

Tags: auction, Auctioneer, property, Real Estate

This entry was posted on Friday, September 5th, 2008 at 6:11 pm and is filed under Auctioneer, Dr. Martin, General, Investment. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.