Real Estate Auctions: Are Realtors Dead Meat?

Published by Joseph Ferrara June 29th, 2006 in Brokers & Professionals.

I DON’T THINK SO!

But someone in the Craigslist discussion forum seems to think so.

Auctions are an option for sellers, but not a replacement for Real Estate Agents. Does anyone agree with Mr. Penguinlovers comment?

Update:

I didn’t think so…

4 Responses to “Real Estate Auctions: Are Realtors Dead Meat?”

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1 Michael Daly Jun 30th, 2006 at 9:23 am

I believe that auctions will become a larger part of the business, because it fits with our penchant for drama and instant gratification, but i don’t believe it will effect traditional agency as a whole, BUT, that being said, there are MANY new business models chipping away at the edges of traditional agency. Better stay on our toes! md
2 sellsius° Jun 30th, 2006 at 1:03 pm

Michael, have you had sellers ask about auctions as a means to sell? From your experience is an auction a last resort after a seller has first tested the market? Is it a FSBO phenon or for a relo who wants a quick sale?
3 Todd Waller Jun 30th, 2006 at 4:43 pm

sellsius°, around the SE. Michigan area, auctions have been around for quites some time. They are not terribly prolific, in fact, I’ve only seen a handful across the last couple of years.

My experience, just showing up and looking around while the auction was in progress, was that it is another option for the unrepresented seller to exercise and save on the commission.

Some foreclosures through a particular asset management company that I deal with are now and again thrown on an ebay like auction. In fact, a listing that I currently have has been selected for auction beginning next week.
4 sellsius° Jun 30th, 2006 at 5:18 pm

Thanks for the comment Todd. Why was your listing selected for auction? Did your client request it? Where they under a time constraint to sell? Had the market been tested before the decision to auction?
Just curious.