PROView - July 2008 - (Page 18) (Continued from page 5) any last-minute pulling out of a deal. A sale is not contingent upon a loan approval because all bidders are pre-approved and properties are sold “as is” with no stipulations for repairs or changes. Also, the sale is also not contingent upon selling current property, which is common in many traditional real estate sales - certainly an advantage in today’s marketplace. In a traditional transaction, sellers risk overpricing their homes, leading to little interest among prospective buyers. To the opposite extreme, they risk under-pricing and selling for much less than the property is worth. As Longly points out, “auctions set the true market value of a piece of real estate.” Referring a Client to an Auctioneer “REALTORS® typically have a network of other professionals,” said Thomas L. Williams, Co-Founder of Williams & Williams and current NAA President. “Now is the time to add a professional auctioneer to your business relationships.” Williams suggested REALTORS® do their due diligence in researching auctioneers they can refer their clients to. He recommends checking which auction companies have the highest concentration, area expertise and product knowledge in your specific marketplace. Next, he proposes, check at least five references from home sellers who have used an auction company’s services within the last six months. Make sure to ask those references how they felt about the process used by the company. Also, Williams advises, become familiar with the marketing strategies they will employ to reach potential buyers. Finally, he points out; negotiate the terms under which you would partner and agree upfront on a reasonable commission split. Once REALTORS® have done due diligence as to the research of suitable auction companies, Williams stresses, they are clear from any liabilities that could arise from an auction transaction. Where REALTORS Fit In Many brokers and agents would probably ask if there are enough benefits for a REALTOR® when suggesting that a home is sold at auction. According to Ben Anderson, Real Estate Broker and President of Anderson Auctions, Inc. in Destin, Florida, there are several reasons why agents and 18 PINELLAS REALTOR® ORGANIZATION brokers should consider a real estate auction either as seller’s or buyer’s agent. “Auctions generate a list of ready, qualified buyers and give you assurance that a property will be sold at true market value.” Anderson further said that an auction process gives you the opportunity to sell your client’s property in a short time period, exposes the property to many potential purchasers, brings people in to look at all your listings, not just the auction listing and typically result in referrals and return business. “Representing clients for auctions allows agents to earn commissions as referring agent/broker, cooperating agent/broker, or as the listing agent/ broker and as the buyer’s representative,” said Anderson who currently serves as the Chairman of the NAR Presidential Advisory Group on Auctions. According to Longly at NAA, each auction company offers different compensation schedules for brokers and REALTORS®. What most have in common is that a buyer’s agent must be pre-registered prior to auction. In some cases brokers are paid a percentage of a written opening bid and a percentage of the difference between their clients’ opening bid and the final contract sales price. A likely requirement is that a client must close on a property and pay the total contract price before a commission is paid. According to Anderson, the importance of auctioneers and REALTORS® working together has perhaps never been greater. “It’s imperative, especially in today’s market, for all of us to come together to help sellers sell and buyers buy.” Asked about the perception many may have about auctions, Anderson, also a REALTOR® for 35 years, mentioned that auctions essentially provide yet another method to sell a property. Ultimately, he said, it’s the same as a traditional sale. “It’s about bringing buyer and seller together at a meeting of the minds at a fair market price, a win-win situation where we together help the seller accomplish their goals while giving the opportunity to a buyer to get a good buy at their price.” Anderson mentioned that his company is about to change the way they cooperate with REALTORS®. “Previously, the referring agent would withdraw their listing agreement with the seller and we, as July 2008
Table of Contents Feed for the Digital Edition of PROView - July 2008 PROView - July 2008 Contents Chairman’s Notes Feature Story PROActive Making the Most of Your Membership Marketplace Analysis Home Sales Report MLS Update Brokerage Design MLS Mind Your Manners Calendar of Events & Programs New Members and Affiliate Members PROView - July 2008 PROView - July 2008 - PROView - July 2008 (Page Cover1) PROView - July 2008 - PROView - July 2008 (Page Cover2) PROView - July 2008 - Contents (Page 1) PROView - July 2008 - Chairman’s Notes (Page 2) PROView - July 2008 - Chairman’s Notes (Page 3) PROView - July 2008 - Feature Story (Page 4) PROView - July 2008 - Feature Story (Page 5) PROView - July 2008 - PROActive (Page 6) PROView - July 2008 - PROActive (Page 7) PROView - July 2008 - PROActive (Page 8) PROView - July 2008 - PROActive (Page 9) PROView - July 2008 - Making the Most of Your Membership (Page 10) PROView - July 2008 - Making the Most of Your Membership (Page 11) PROView - July 2008 - Marketplace Analysis (Page 12) PROView - July 2008 - Home Sales Report (Page 13) PROView - July 2008 - MLS Update (Page 14) PROView - July 2008 - Brokerage Design (Page 15) PROView - July 2008 - MLS Mind Your Manners (Page 16) PROView - July 2008 - Calendar of Events & Programs (Page 17) PROView - July 2008 - Calendar of Events & Programs (Page 18) PROView - July 2008 - Calendar of Events & Programs (Page 19) PROView - July 2008 - Calendar of Events & Programs (Page 20) PROView - July 2008 - Calendar of Events & Programs (Page 21) PROView - July 2008 - New Members and Affiliate Members (Page 22) PROView - July 2008 - New Members and Affiliate Members (Page 23) PROView - July 2008 - New Members and Affiliate Members (Page Cover3) PROView - July 2008 - New Members and Affiliate Members (Page Cover4)
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