Time = Money

Somewhere between the pennies-on-the-dollar discount home buyers and
waiting for a low-ball offer to start "negotiations" is another option:
Real Estate Auction.

Some people think of "Real Estate" and "Auction" together in terms of
distressed properties - foreclosures, tax forfeitures, and the like.
Anybody who limits their thinking about Auctions in this way is missing
out on a big opportunity. Auction is a fast-growing segment of the
Real Estate industry (1), and Real Estate is also becoming a leading
segment of the Auction industry(2). Both complement each other very
well. While some people perceive auctions as a discount selling
method, where sale prices are typically below "market value", the
reality is quite different. Auctions are an extremely efficient and
accurate way to set true market value of any property, where multiple
serious bidders compete with one another with the sale going to the
highest bidder.

Auction takes three major aspects of a "traditional" Real Estate
transaction and turns them completely around:

TIME: In a "traditional" Real Estate transaction, time is left open.
There is no set time by which offers must be made, and therefore no
urgency placed on any party to the transaction. Without any limits on
time the process can drag on indefnitely, costing the seller money in
mortgage payments, taxes, maintenance, utilities, and reduced value of
money. By contrast, Auction sets a specific date and time on which the
sale will occur. All potential buyers are aware of this limit, and
have a sense of urgency that comes with knowing that time is of the
essense. The seller sets the date and time, and knows when their
holding costs will stop accruing.

NEGOTIATION: In a "tradional" Real Estate transaction, many terms and
conditions are left to negotiation. Buyers make demands of sellers to
update, repair, treat, pay points, and make other concessions. Buyers'
offers often include option periods that allow them to back out of a
sale contract without any reason, as well as various "outs" based on
performance by the seller. Using Auction, the seller sets all terms of
the sale, usually "as-is, where-is". Bidders agree to all of the
seller's terms before the Auction starts.

PRICE: In a "traditional" Real Estate transaction the seller starts
with an "asking price", which is then worked downward - either by
negotiation or through reduction due to elapsed time on the market.
Some sellers set their asking prices high, with the expectation of
being "low-balled". Some buyers offer well below the asking price,
expecting to "give" some. In any event, by setting an asking price up
front, a seller has effectively put an upper cap on the price at which
the property will sell. On the other hand, Auction continuously builds
the price upward through competition and urgency. There is no upper
limit on the sale price, which is set in the ultimate free market
environment of multiple serious, qualified bidders competing for the
right to purchase the property.

A Real Estate Auction is not for every property, and not for every
seller. Unique, high-end properties do best. Properties need to have
something to set themselves apart from others on the market. A typical
tract home, that's just like all the other tract homes, won't sell
itself and about the only way to make it highly competetive is to
reduce the price considerably. On the other hand, a high-end unique
property - where comps are few and far between, and buyers rare, that
might tend to stay on the "traditional" market for an extended period -
can do very well at auction and return a considerable value to the
seller.

Sellers need to be serious and motivated, to gain the most benefit from
a Real Estate Auction. The bidders are serious and committed, and they
expect the seller to be the same. A serious seller is one who
understands the true costs of NOT selling, understands the time value
of money, and is motivated to get it done. They understand that a
dollar in their hand today is worth more than that same dollar would be
six months from now. A serious, motivated seller is one who acts based
on business sense rather than emotion.

National Gavel REALTORS(R) and Auctioneers is a nationwide company that
specializes in selling Real Estate by Auction. For more information
about how you can use the National Gavel Real Estate Auction process to
help you buy or sell Real Estate, please call or e-mail me at the
address (replace '#' with '@') or phone number below.

John Mianowski
johnm#nationalgavel.com
972-998-1725

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