One day a woman I had grown friendly with from one of my local auction houses called me and asked if I had any properties I was having trouble re-selling. I explained I had one in particular that had turned out to be a bad purchase on my end and I was having little luck selling it. She asked me to give an auction a try. I did and it sold on auction day. I even turned a profit on a deal I thought was going to be a loss to me. I didn’t realize it going in, but it was the start of an important lesson of how agents and auctions can partner for profit.
The experience got me thinking and I called Dawn my auctioneer friend and asked if she could auction some listings I had that were not moving either. She said “Of course!” and offered me a generous referral fee. I spoke to one particular client who had 18 investment properties listed with me and he agreed to try an auction. Again this was a great success and we were able to move 13 of his properties on auction day!
My experiment with auctions continued. The properties I had sold at auction already were all low-end properties that needed a great amount of work, but I now wanted to try a more luxury property. I had two high end rehabbed properties in an area were there where a high number of other homes on the market. Though my rehabs were beautiful, the competition to sell properties in this price range was high as the inventory was flooded. Again I had great success on auction day. My fascination with real estate auctions continued and I befriended all my local auctioneers. They were an additional tool I had to bring properties to my buyers and also to market homes for my sellers.
Now that I have had the opportunity to work on the auction side with the national firm RealEstateAuctions.com I encourage my fellow agents to use me as a resource. If there is a listing about to expire with little interest, you may talk to your client about an auction. Your client saves money on commissions as it is charged as a buyers’ premium and the seller’s commitment to sell strengthens as they contribute a small marketing fee up front. I do the work and you get paid!
Rebecca Giacobba formerly worked with RealEstateAuctions.com as a Team Leader for the company in north Palm Beach County, Florida. In this blog posting, she discusses how auctions can benefit fellow real estate agents with many types of listings, not just those that are distressed. If you’d like to learn more about how agents and auctions can partner for profit, or about upcoming auctions in general in the Palm Beach County area, send an email to firstname.lastname@example.org.