Auctions 18 Nov 2008 08:49 pm
Staying Positive in a Negative World.
Actually, I have not been the biggest proponent of “positive thinking.” Neither am I one who thinks we should focus on the negative in our market. Rather, I prefer to simply look at what is “REAL” and act upon it,
The truth is, we have had a significant scaling back in Real Estate Activity this past year. Less people bought homes. More people decide to, or had to sell, and too many builders found themselves on the wrong side of the stick with the banks. This led to overstocking of inventory in Sumner County, and a real need for becoming a “realist.”
I have spoken to numerous agents who have had “decent” years, but have found things to have “really slowed down” over the past few months. Now this is normal in any given Election year and especially every 8th year when there is going to be a new president due to closure of term for the incumbant if they have been there for 2 terms. That is what we faced this year, and the race was highly publicized and touted and fierce combat was waged. Emotions literally gripped people as they watched it unfold.
What was not so normal during this time was when the stock market started waivering and when big banks and companies started to fold. The next thing we knew were the words “bailout”, which enraged many and froze others in their financial tracks. In one day people lost 100’s of 1000’s of dollars and the turmoil has yet to stop.
Sounds all bad, right! Well, there has been a bright spot! AUCTIONS!
Yes, I know! Sounds like a plug coming from an Auctioneer. But in fact, it is true. Auctions have sprouted this year, and as any one who has been doing auctions for awhile will tell you, bad financial times lead to great auctions. And here is why:
1. The markets are overloaded and your property will become just another one in the sea overstocked with fish. Buyers can’t find you because you blend in! In steps Auction advertising! All the sudden, buyers are drawn to your property because you put up a “blue light special” and gave notice you are serious about selling.
2. Auctions bring a definite time frame to a transaction and closing. There is no sitting and waiting for the market to turn, you are getting ahead of the slow traffic!
3. Banks will come to you instead of you going to them. Banks have found themselves attracted to working with auctioneers because of several reasons. 1) The auction brings a client with money (usually 20% down) and 2) bankers have had higher success rates over the past 20 years with loans made at auctions than “normal” loans they have made. (source: banker who works with an auctioneer locally.)
With lenders on edge and markets overstuffed, it only makes sense to at least check into this process for your property. There will be some qualifying factors for your property to be successful at auction, but, if you speak to an auctioneer with integrity, they will let you know whether or not your property is a good candidate or not.
If you would like to discuss an auction potential, give me a call at 615-428-4920. Typically you can book, conduct, and close an auction in 60 days. Call me and find out if your property would be best served by an Auction! – Ray Carman.