Florida Real Estate Auctions

According to the National Auctioneers Association, more than $16 billion of residential real estate was sold by auction in 2006, an increase of 12.5% over the previous year. That's still a fraction of the $1.74 trillion existing home sales that were made last year, according to the National Association of Realtors.

Real Estate Auctions are a way to reintroduce excitement back into the selling process, forcing interested buyers to get off the sidelines where they're waiting for further price drops. It's also a way for highly motivated sellers to get a buyer quickly; listings typically sell in minutes rather than months.

Buying and selling residential real estate by auction isn't a new concept, but it has been gaining momentum recently. The process is also losing its stigma of being an option of last resort, associated only with distressed properties and foreclosures. Many builder's model homes have been auctioned recently, with upgrades galore and in pristine condition.

As housing markets cool, the idea is becoming more interesting to motivated sellers who need to sell quickly. Auctions are also intriguing to price-conscious buyers who are able to line up financing in advance and commit to a contract that often doesn't allow for contingencies.

The growth of online auctions such as those held on eBay as well as the ubiquitous charity auction have made the general public more comfortable with the process of bidding.

As more people are exposed to this method of doing business, even more home sales will be conducted by auction. People seem to especially like the transparency of the bidding process because all participants are aware of what others are offering for the home and all bidders must abide by the same terms of sale.

However, Buyers need to know exactly what they're willing to pay for the home and need to research the property prior to the auction. The property should be viewed in advance and all other due diligence, including home inspections should come prior to bidding. A comparative market analysis performed by a qualified real estate professional can be a great help in determining market value of a particular property, based on recent comparable sales in the same area as the subject property.

Buyers also often have to agree to a contract without contingencies, have their financing in place and have a deposit ready to go should they win the auction. The conditions of a real estate auction attract a high quality pool of buyers, which is very attractive to Sellers in this market.