My personal experiences with selling real estate at real estate auctions have been both positive and successful. Since real estate auctions are increasing in the United States, I recommend to my students selling property at real estate auctions because it is a great way to expose property to multiple buyers at once and to sell the property to qualified buyers who are ready to buy. Real estate auctions are also an easy way to locate and purchase discount and bargain investment properties such as foreclosure properties, distressed properties and government seized properties.



I advise my students that real estate auctions are a powerful way to sell property. With real estate values down currently in many areas, it is one of the easiest ways to sell property. However, some states require that you have a real estate license so I recommend to my students that they investigate the laws of their state first.

Online Auction Sites:

There are real estate auction companies that are licensed to hold online auctions. Online public real estate auctions are successful if the public bidding are aware of the property being sold and the date of the sale.

Many of my students that I have coached have followed my simple steps to promoting the sale of real estate at real estate auctions.

Way to Promote the Property for Auctions:

1.Place newspaper ads in local newspapers, put signs on the property and advertise on internet sites. Be sure to include all information such as the name of the real estate auction company, information regarding the real estate auction website, picture of the property, list price and opening bid, name and telephone number of the real estate agent, and your name and telephone number. I advise my students that they must be willing to invest money in advertising to promote the property.

2.Also, students need to convey to buyers that they are serious sellers. This can be accomplished by setting a low minimum bid and low reserve price. The public will only know the minimum bid. The reserve price is confidential until the reserve has been met. Once the reserve has been met, the buyers will be notified that the reserve price has been met.

Note: [Online auctions such as ebay or Yahoo are not legally binding. They are not licensed real estate auction houses qualified to sell residential or commercial real estate. Their services are advertising mechanisms to bring buyers and sellers together. After the bidding, the sellers and buyers attempt to negotiate a real purchase and sale contract.

Advantages to Seller:

1.Large exposure of property to many buyers at one time.

2.Eliminates showings.

3.Saves money on months of carrying costs, taxes, maintenance, repairs and mortgage costs.

4.Buyers are ready to buy. They are pre-qualified.

5.Real estate auction properties frequently sell more than the listing price.

6.Involves marketing that increases interest and differentiates your property from comparable properties in the market place.

7.You know when the property will sell.

8.No negotiating over the price.

9.Property is sold as is.

10.Saves money on commissions. Most auctions use a buyer’s premium.

11.Helps to avoid foreclosure.

12.Easy and quicker way of selling.

Advantages for Buyer/Investor:

1.Serious, motivated seller.

2.The Buyers determine the purchase price.

3.Purchase time is reduced.

4.No negotiation process.

5.Buyers receive due diligence information regarding the property immediately.

6.Buyer knows closing dates immediately.

7.Buyers are competing on same terms as other buyers and feel like they are being treated fairly.

8.If there are multiple properties being auctioned, buyers get exposure to purchasing at one time.

Through my coaching and mentoring, many of my students have discovered that buying and selling real estate at real estate auctions are extremely simple and financially rewarding real estate investments. Real estate auctions benefit both buyers and sellers.

Students should take them into consideration as effective marketing tools for selling property quickly and often for more than the listing price.