- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (7)
- Dan, "the_country_hick"
- Contributions:4699
Yes, the auctioneer is going to charge you p-lenty. If you do not sell the house the auctioneer still did the same amount of work as if it did sell.
The problem with a reserve auction is the bidders know the house may not sell. That means many people will not waste their $4 a gallon gas to go to it. That could give a lower price than if it was a guaranteed no-reserve auction. If it was a no-reserve auction you would have to sell and might get very little.
I would not think this is the best approach.
The problem with a reserve auction is the bidders know the house may not sell. That means many people will not waste their $4 a gallon gas to go to it. That could give a lower price than if it was a guaranteed no-reserve auction. If it was a no-reserve auction you would have to sell and might get very little.
I would not think this is the best approach.
- Hamp Yonce, "Zilluminati"
- Contributions:3463
The last auction I attended, the Buyer paid a six percent Buyer's premium, to the auction company. I do not know if the Seller paid anything. There are probably multiple ways to arrange the "commission". Auctions are becoming more popular. It is worth looking into. I would think that the Auction company assumes the risk of a "no sale". Call a few and find out. Let us, on Zillow, know what they say. I find it interesting. Thanks for posting the question.
Call this guy!
Call this guy!
- Skip Dreibelbis, "True Blue Auctions"
- Contributions:154
Nobody ever receives "less than market value" using the auction method and in fact often more than comparable listed properties. However don't take my word for it. Read all about it at the National Association of Realtors website at http://www.realtor.org/au ... ionbasics
Regarding what auctioneers charge, this varies depending on each auctioneer and/or auction company or firm. What you need to look at is how they market properties, what they charge and compare this to others and ask all the hard questions.
Auctions are the best method of selling compared to the list, wait and continuously reduce method with all the contingencies never knowing when your property will be sold using an agent and/or realtor. We have an instructional video (promotional link deleted by Zillow moderator. Please refer to our Good Neighbor Policy} you wish to learn more.
Regarding what auctioneers charge, this varies depending on each auctioneer and/or auction company or firm. What you need to look at is how they market properties, what they charge and compare this to others and ask all the hard questions.
Auctions are the best method of selling compared to the list, wait and continuously reduce method with all the contingencies never knowing when your property will be sold using an agent and/or realtor. We have an instructional video (promotional link deleted by Zillow moderator. Please refer to our Good Neighbor Policy} you wish to learn more.
- Michael Emery, "MikeEmery"
- Contributions:7298
It would be nice to see statistics to back up the NAR talking points document. The document was primarily written for agents and lacks any attribution to back up their claims.
- Skip Dreibelbis, "True Blue Auctions"
- Contributions:154
Michael
You are an agent and/or realtor, why would you want to be a part of an organization that would disseminate lies to the public on such a serious mater of the true market value of their homes?
Certainly the National Association of Realtors is not about to put out information that is not true.
I understand that the auction method of selling is an enigma to many as is demonstrated in the question but to try to discredit the National Association of Realtors is very disingenuous on your part especially since you are listed on this website as an agent and/or realtor...
You are an agent and/or realtor, why would you want to be a part of an organization that would disseminate lies to the public on such a serious mater of the true market value of their homes?
Certainly the National Association of Realtors is not about to put out information that is not true.
I understand that the auction method of selling is an enigma to many as is demonstrated in the question but to try to discredit the National Association of Realtors is very disingenuous on your part especially since you are listed on this website as an agent and/or realtor...
- Gordon Haraway, "1stTimebuySpecialist"
- Contributions:250
Each auction company works differently. I know of one that charges the seller a non refundable flat fee that ranges from about $800-3,500 depending on the estimated value of the home. The auction charges the buyer a 10% buyers premimum and they pay the buyer and selling agents fee out of that fee, generally it is 2.5% each. So for the home seller while they may actually get less at auction in many cases they receive more because there selling costs are lower.
It is certainly worth looking into. just make sure you do not sign anything that obligates you to sell in a way that will hurt you. Many times theses auctions will produce bids that are lower than the reserve, at that time the auctioneer will take the highest bid to the seller to see if you would like to accept it.
It is certainly worth looking into. just make sure you do not sign anything that obligates you to sell in a way that will hurt you. Many times theses auctions will produce bids that are lower than the reserve, at that time the auctioneer will take the highest bid to the seller to see if you would like to accept it.
- Skip Dreibelbis, "True Blue Auctions"
- Contributions:154
Dan, [Personal insult removed by Zillow moderator. Please refer to our Good Neighbor Policy for more information.] not sold any property using the auction method. Look at what he posts, "the auctioneer is going to charge you p-lenty. If you do not sell the house the auctioneer still did the same amount of work as if it did sell." He obviously does not know the difference between an "auction house" (Auction Houses are used to sell chattel) and the Auction Method of selling real property (real estate). Further, the comment about auctioneers receiving the same commission if the property does not reach the reserve amount is absolutely ludicrous. In all the years I've sold real property at auction this is NEVER the case. In fact, I've donated my services on more occasions and suffered a loss and in fact sold real estate with NO Commission just to help a family out. I'm sure there are unscrupulous realtors, agents and auctioneers out there but the auction method is still the best way to get the job done compared to the list, wait and continuously reduce method of selling. Why put a price on the property? Why not let the sellers decide the day of auction if the price being bid is acceptable? Once the price is on a property it is game over! People don't say, "This property is only 100K, it's cheap! I'm going to offer 130K." As much as agents and/or realtors would like to be auctioneers they are not. Using private treaty sales (the list wait and continuously reduce method of selling) while property values continue to decline as people pay their mortgages, taxes and insurance and maintenance costs while their property value continually declines as it is one of the many listed only causes the seller to hemorrhage even a greater a loss of funds in the end. When buyers compete sellers win with the auction method.
Selling a house via a reserve auction.
idea. Of course, one should be prepared to accept less than market value. How do these auctioneers charge? If it doesn't sell is the charge the same?
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.