Real Estate Auction Marketing Goes Mainstream

The National Association of Realtors predicts that by 2010, one-third of all properties sold in the U.S. will be sold at auction. According to the National Association of Auctioneers, real estate auctions are generating $16 billion per year and growing as smart, motivated Sellers and Buyers catch on to these quick, clean and fair real estate transactions. Unlike foreclosure auctions, Fair Market Value auctions are heavily marketed, use conventional mortgage financing and require full disclosure by the Seller and Broker.

Fair Market Value essentially means the price on the open market at which a Buyer is willing to pay and a Seller is willing to accept, neither being under any undue pressure. Assuming a property is properly marketed, the competitive bidding process of an auction should produce that result. Therefore, the Seller should feel confident they received the highest price for their property while the Buyer can be assured they did not overpay, because other potential Buyers were willing to pay close to the same price.

Resources

Real Property Auctions