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Business is BOOMING! November 21, 2006

Posted by AlynnROCK Group in Auction News.
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auction-11-4-06.jpg 

WOW!  What a ride it’s been in the Pacific Auction Exchange office these last two weeks!  Thanks to TransparentRE for mentioning the article written in the Contra Costa Times about our November 4th Auction!  We were honored to be featured on the FRONT PAGE of Northern California’s second-largest newspaper.  See, that word “Auction” really is like a big spotlight on a property!

With 100+ people coming through 4 hours of Open Houses and 7 registered bidders (there would have been 9, but one came with a personal check instead of the required cashier’s check….and the other one drove up two minutes after the auction started) it was a total success for everyone!  Our seller paid off their mortgage with an extra $35K in their pocket!  Our buyer got a fantastic deal!  And, the referring agent along with the buyer’s agent will both get a nice commission check at the close of escrow!  WOW!  The photo at the top of this article is from that auction – SOLD in FOUR MINUTES!

And, right behind that auction we have a HUGE auction for 11 vacant residential parcels scattered throughout California.  They are listed on a special website we created just for that auction.  It’s an Absolute Auction – so the lots will be sold to the highest bidder…no matter what the price.  Someone’s going to get a STEAL and it’s going to be so much fun!!!

So, that’s where I’ve been….working hard closing one auction, prepping for another, and qualifying some more sellers who need that quick, time-defined sale.  Stay tuned for more info on upcoming PAX auctions!

HAPPY THANKSGIVING!

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Ebay is Great, but Live Auctions are Better! November 6, 2006

Posted by AlynnROCK Group in Auction News.
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ebay1.jpgI have “new blogger syndrome”….spending hours trying to write a post, only to have nothing show up!  Time to learn HTML I guess!

In the meantime, check out the article today for yourself! It highlights what the NAA has been reminding us for years….the #1 reason people go to auctions:  FUN!

Move Over Ebay; Live Auctions Still Have Huge Following

Types of Auctions November 2, 2006

Posted by AlynnROCK Group in Auction FAQ.
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auctioneer.jpg I like this short article for two reasons….1)Education – how many people know that there are so many different kinds of auctions and the different terminology used to refer to them?  2)How many Realtors out there know that if they have questions about Real Estate Auctions they can just give a call to the National Association of Realtors Auctioneer Department (see last sentence of article).  Pretty interesting stuff!

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TYPES OF AUCTIONS

Q. What are the different types of Real Estate Auctions available to me?
A. Essentially there are three types of auctions:

ABSOLUTE AUCTION (or auction without reserve)
1. The property is sold to the highest bidder, regardless of the price.
2. Since a sale is guaranteed, buyer excitement and participation are heightened.
3. Generates maximum response from the market place.
4. Many sellers, including financial institutions and government agencies have begun to use this method more frequently.

MINIMUM BID AUCTION
1. The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction.
2. Reduced risk for seller as the sales price must be above a minimum acceptable level.
3. Buyers know they will be able to buy at or above the minimum.
4. The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price, and therefore it must be low enough to act as an inducement rather than a hindrance.

RESERVE AUCTION ( an auction subject to Confirmation)
In this scenario, the high bid is reduced, in effect to an offer not a sale. A minimum bid is not published, and the seller reserves the right to accept or reject the highest bid within a specified time — anywhere from immediately following the auction up to 72 hours after the auction concludes. Sellers predetermine the price at which the property will be sold and are not obligated to confirm a sale other than at a price that is entirely acceptable to them. The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder.

NOTE: For more information on real estate auctions, contact the NATIONAL ASSOCIATION OF REALTORS® Auction Dept. at 312.329.8495 or a REALTOR®-auctioneer.

REAL ESTATE AUCTIONS: THE BASICS & BENEFITS November 1, 2006

Posted by AlynnROCK Group in Auction FAQ, Auction News, Real Estate News.
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realtor_benefits.gifLet’s take a look at the National Association of Realtors and what they have to say about Real Estate Auctions. I know that there are quite a few Realtors out there who might be, at best, confused…at worst, skeptical & closed-minded. Let’s see what the NAR has to say…..(I just found this article by going to their website and typing “auction” into the search bar…there’s lots of good advice for buyers, sellers, and Realtors on the NAR website!)

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Q. What is a Real Estate Auction?

A. A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property — most certainly including those that are nondistressed — through open cry, competitive bidding.

Q. How will auction benefit me?

A. The real estate auction is a win-win proposition for everyone involved.

BENEFITS TO THE SELLER:

* Buyers come prepared to buy
* Quick disposal reduces long-term carrying costs, including taxes & maintenance
* Assurance that property will be sold at true market value
* Exposes the property to a large number of pre-qualified prospects
* Accelerates the sale
* Creates competition among buyers – auction price can exceed the price of a negotiated sale
* Requires potential buyers to pre-qualify for financing
* The seller knows exactly when the property will sell
* Eliminates numerous and unscheduled showings
* Takes the seller out of the negotiation process
* Ensures an aggressive marketing program that increases interest and visibility

BENEFITS TO THE BUYER:

* Smart investments are made as properties are usually purchased at fair market value through competitive bidding
* The buyer knows the seller is committed to sell
* In multi-property auctions the buyer sees many offerings in the same place at the same time
* Buyers determine the purchase price
* Auctions eliminate long negotiation periods
* Auctions reduce time to purchase property
* Purchasing and closing dates are known
* Buyers know they are competing fairly and on the same terms as all other buyers
* Buyers receive comprehensive information on property via due diligence packet

BENEFITS TO THE REALTOR®:

* Generates a list of ready, qualified buyers
* Offers clients and customers new selling and purchasing options
* Increases revenue and market share
* Develops your own market niche
* Assurance that property will be sold at true market value
* Property is sold within a relatively short period of time
* Exposes the property to many potential purchasers
* Auctions bring people in to look at all your listings, not just the auction listing
* Successful auctions result in referrals and return business
* Agents can earn commissions as referring agent/broker, cooperating agent/broker, or as the listing agent/broker

SOURCE: National Association of Realtors