Auctions Explained
Many people want to know why they should buy or sell their home at auction. Auctions - the age-old method of selling property to the highest bidder - are now taking the real estate industry by storm, and the number of real estate auctions being held around the country is skyrocketing.
For many years, auctioneers have had tremendous success in selling a variety of products through the auction process. Now, due to the recent shift of the real estate market in areas like Phoenix, South Florida, Southern California, Las Vegas and others areas, people are looking for creative ways to buy and sell their homes. Auctions are the innovative approach that is meeting these needs. The latest statistics by the National Auctioneers Association report that the most significant growth in the auction industry is coming from residential real estate - a segment that grew by 12.5 percent in 2006, generating $16 billion in sales for the year - up from $14.2 billion in 2005. According to the association, "Residential real estate auctions are the fastest growing sector of the industry and are increasingly being accepted as mainstream with the general public."There are two different types of real estate auctions: reserve auctions and absolute auctions. An Absolute Auction, which is also known as an "auction without reserve" is one in which the property is sold to the highest qualified bidder with no limiting conditions on the amount of the sale. A Reserve Auction, which is also known as an "auction subject to seller's confirmation" is one in which sellers predetermine the minimum price at which a property will be sold, and are not obligated to confirm a sale other than at a price that reaches or surpasses their "reserve price" - their minimum acceptable amount.
National Real Estate Auction Corporation specializes in multiple property auction events. By having multiple properties at auction, all in one location and on the same day, all parties enjoy an exciting, efficient and productive event. Our company requires all qualified bidders to register prior to the event, which gives sellers the peace of mind of knowing that bidders are serious and ready to buy. On the other hand, the auction is a comfortable and enjoyable atmosphere that puts bidders at ease.
Whether you are a buyer or a seller, we are certain the auction experience will be beneficial and rewarding. To find our more about the auction process, or get the dates for our upcoming auctions, call National Real Estate Auction Corporation at 1-888-228-5470.