Yes, it’s a hot real estate market. What exactly is a “seller’s market?” It’s pretty basic. If four people are sitting around the table and one frozen waffle pops out of the toaster, then three people won’t get a waffle. You might think the person who prevails and gets to eat the waffle is the winner. Nope. The person who first owned the waffle everyone wanted is the real winner.
Why? Simply because when there aren’t as many waffles as there are waffle eaters, those who own the limited waffles can command a premium for their waffles. That’s the real estate market right now. There are more people wanting homes than there are people selling homes. When one pops up, multiple people are at the table to grab for it. Good for the owner, right?
Seems like a fast, easy sale if you’re a homeowner. And it can be. But fast isn’t always smart, and easy doesn’t always stay that way. Home sellers lured by the siren call of Realtors’ success statistics or friends’ chirpy Facebook posts can be forgiven for assuming a fast sale is guaranteed (it isn’t) and an easy sale is the norm (it isn’t).
If asked, most home sellers are more interested in a good price than a fast sale, but a quick offer is tempting. In a hot real estate market offers can come quickly. Sometimes multiple offers. The four people at the table grab for the waffle right away.
But, what if someone wants the waffle even more than those four people? And what if that person hasn’t walked into the room yet, or doesn’t know there’s a toaster at this table? That person would certainly have “paid” more to have it.
Problem: Fast offers aren’t always the highest offers and quick acceptance can result in sellers leaving money on the table.
Solution: A well-promoted real estate auction brings all potential buyers to the table at the same time to compete against each other, ensuring that the property truly sells to the person willing to pay more than all the others, not just the person who saw it first.
In a hot real estate market getting an offer can be fairly easy. And when that happens quickly, it means less time living the tormented life of a home seller always in limbo. However, as anyone who has ever sold a home can attest, getting from offer to escrow closing can be fraught with difficulties and filled with unexpected surprises resulting in everything from additional seller hassle and expense to failed contracts.
The person who grabbed the waffle first may now demand syrup to be included, or request additional toasting time, or ask the waffle owner to butter it. Or he may simply decide he prefers an omelet and puts the waffle back (after everyone has left the table, of course!).
Problem: Traditional real estate contracts leave many options for buyers to make additional demands of sellers resulting in additional work and/or expense. Resolving these issues can delay the process AND erode the seller’s net. What’s more, at any point in the process that same contract often allows the buyer to completely walk away.
Solution: A professional real estate auction ensures a contingency-free sale with no strings attached. The purchase agreement is not contingent on financing, appraisals, etc. At an auction, the property is sold in “as is” condition so no additional work is required of the seller. (Not because the property has problems; only because all bids must be on equal terms.) What’s more, the winning bidder at an auction puts down a sizable non-refundable deposit, to make a change of heart unlikely.
Choosing an experienced professional real estate auction company like Cates Auction & Realty to handle the marketing and sale of your home, land, or commercial property will:
1. Provide maximum exposure. (Be sure all waffle eaters are at the table)
2. Use competitive bidding to get the highest price. (Not just work with the first to grab the waffle)
3. Enforce terms to simplify the process. (Be sure the waffle owner isn’t hit with any surprises)
So sellers: No matter how you choose to sell, you truly have the advantage in this market. There aren’t enough waffles to go around. Getting offers isn’t the hard part. A sign in your yard (your Realtor’s or your own) can do that. If you want a fast sale (that’s also smart), and an easy sale (that truly is), you owe it to yourself to add auction marketing to your list of options. See if auction is right for you by submitting a free auction analysis or contacting us today!
It’s a hot market. You’re fortunate to have a waffle. Make the most of it!
There are two main reasons people selling real estate miss out on the benefits of a professional auction strategy. Either they assume (incorrectly) that the process is for distressed properties or they assume (incorrectly) that the process is mysterious.
If you’re thinking about selling your home or already trying unsuccessfully, you owe it to yourself to explore the auction strategy. Who doesn’t love massive targeted marketing and buyers competing with each other to own your property? The hotter the market, the higher the price goes, and there’s no negotiating or hidden costs to deflate the great price you got. Definitely worth a quick look!
Though professional real estate auctions have been around for years, most homeowners don’t really understand how they work. As a result, they stick with what they know and end up taking the first offer that comes along, or endure the ongoing swirls of an ordinary listing approach.
While professional real estate auction firms like Cates Auction are highly selective about properties they will accept for auction, the process for the fortunate sellers is surprisingly simple. Herewith, the six simple “S’s” to selling your home at auction…
It really is that simple! Cates Auction and other top-ranked firms will provide a free property analysis so that you can explore the option and evaluate the company with no obligation or risk. If you like what you see and your property is accepted for auction, you’ll enjoy a short, hassle-free sale for true market value on the date you choose.
Unless you live under a rock, you’ve recently been involved in a conversation about the “hot” real estate seller’s market and how quickly homes are selling. Amazing feats of Realtor heroism and houses getting snapped up in the blink of the proverbial eye. Your aunt’s neighbor only had a sign in the yard a week. Your co-worker’s agent brought an offer the first day. Your friends got an offer before they had a chance to interview Realtors. So, what’s the problem?
And even if you are living under the aforementioned rock, Realtors would jump at the chance to list your rock for sale and would likely promise to get it sold fast. In fact, they say, they have buyers looking for rocks just like yours. So, what’s the problem?
Is all that true? Are houses really selling that fast? Are rock buyers really lined up waiting for the next rock to come on the market? Well, sort of, yes. So, what’s the problem?
The reality is that in most major markets there is some degree of a shortage of certain types of homes, resulting in a true seller’s market. So, when such a home becomes available, there likely are eager buyers who’ve been waiting. A fast sale results and the story takes on a life of its own.
So, here’s the problem: Expecting, or worse yet assuming a fast sale can be a fatal mistake when getting top dollar is the goal, even in a seller’s market. Why? Because anytime we expect or assume something will be easy we tend to put in less effort. Sure, we could get lucky, but that’s an awfully big risk to take on the most valuable asset most of us will ever own.
If your house is going to sell fast anyway, why bring in the best professional help? Why invest in marketing? Why not just take that first offer and run to the bank?
Because two things are required for the best possible sales price:
SOLUTION: A professional real estate auction! “Hold on,” you say. “Why would I resort to an auction in a strong real estate market?” Well that’s easy. First, re-read the above paragraph. Second, let this sink in: the hotter the demand, the more critical the elements of marketing and competition. How can you possibly know you’re getting the best price without exposing your property to ALL buyers and without forcing those buyers to compete with each other? A seller’s market is precisely the time you should utilize auction.
Inexperienced sellers often assume an auction is a last resort for an owner who can’t seem to get a sale. Sure, auction can solve that unfortunate problem. But at the very core of the auction strategy is that the bigger the buyer pool and the more desirable the property, the more important it is to engage all qualified buyers and ensure you sell to the one who will pay the most. It’s the same rationale owners of exotic cars and fine art use. That’s exactly what enlightened Realtors and savvy home owners want!
Said differently, the hotter the market, the better the auction!
Professional realty firms like Cates Auction Real Estate Company can do a free auction property analysis and provide consultation for sellers and their Realtors who wish to explore the benefits of the approach. In this seller’s market, strategy is more important than ever. Then again, if top dollar isn’t your goal, go ahead and put your sign out and just sell to that first offer.
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