Friday, March 2, 2007

Misunderstanding About Home Auctions

Perhaps you have heard that home sale auctions are making a come back with the down turn in real estate sales. Home auctions were popular in the 1980’s and 90’s as a last resort for desperate sellers. A resurgence of home auctions has begun in California and popping up in Oklahoma and Virginia.

A Leeburg, Virginia firm reported auctioning 57 homes from Jan-June of 2006, up from 11 in the last 6 months of 2005. California real estate trends often acts as an indicator of soon- to-be trends here.

Auction services often exceed 10% commission and sellers pay upfront for advertising and marketing.

Chris Mayer of Columbia Business School say sellers have it backward. Auctions work best in a strong market where there is plenty of demand and determined bidders to push the price up.

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