PROView - July 2008 - (Page 19) the auction company, would enter into an exclusive right of sale with the seller, paying a referral fee to the REALTOR®. We now have a new program that allows REALTORS® to maintain the exclusive right of sale.” He said that’s accomplished by engaging his company to conduct the auction sale through an addendum to their listing agreement or by separate agreement between the seller, REALTOR® listing agent, and his company. This, he said, allows the listing agent to remain close to the seller and the listed property; their role is to simply evoke a sale through the auction process. “This is a winwin-win situation for all!” Anderson stressed that the integrity of the REALTOR® is maintained while everyone focuses on an auction as the alternative means to sell a property. “Although it seems that we see a property offered for sale at auction in every neighborhood or town, this is just a sign of the times,” Anderson continued. “The auction is an accelerated method of selling a property in an over supplied market; it offers the seller quick solutions in a slow market.” Anderson made sure to point out that the auction method of sale will not replace the REALTOR® and the traditional listing. “Now, however, is the time for the REALTOR® to add auction to the services they offer their clients.” Anderson suggested a few steps you can take to as a way of getting started. “First, attend auctions in your area. Next, interview several auction companies and ask how they will cooperate with you as either a listing agent or a buyer’s representative. Also, ask for referrals. In addition, check out their website to see if they sell properties similar to your listings? Furthermore, check if they are familiar with your area and Florida law. Finally, ask questions, understanding that auctions do not fit all sellers or all properties.” The Inner Workings of an Auction “Going once! Going twice! Sold to the gentleman in the back for $95,000!” The words of Craig King, President and CEO of J.P. King called out to announce the completion of yet another transaction at a recent auction held at a downtown St. Petersburg hotel. In rather quick succession, King and his team of associates sold over $3.8 Million worth of condos, boat slips and garages of the Clearwater Cay Club Resort & Marina. PINELLAS REALTOR® ORGANIZATION Ready to raise their paddles, over 300 people had registered for the auction and eagerly awaited the next property announcement. According to King, about 50% of buyers are consumers and the other 50% investors. “About one half of all transactions involve a broker as buyer’s representative.” Auctions may differ as to the type of pricing they will offer. In an absolute auction, a property is sold to the highest bidder regardless of price and without a reserve. Absolute auctions typically garner a high response and participation. During a minimum bid auction the auctioneer accepts bids only at or above an advertised minimum price. The advantage for buyers is that they know up front that they will be bidding at or above that price. In auctions with a reserve the seller has the right to accept or reject any offer that falls below a confidential reserve price. The seller must accept any bid higher than the reserve price. Getting Ready for Auction Once a client has signed the dotted line to conduct an auction, J.P. King Auction Company makes staff available to anyone interested in learning about the available home up to six weeks in advance of the auction date. Marketing materials are developed and information posted online at the J.P. King Auction Company website. During the last two weeks prior to the sale, J.P. staff is available on-site to answer any questions prospective buyers, or their agents, may want to ask. Meanwhile, REALTORS® should list the auction in the MLS. Asked what he recommends REALTORS® do, Anderson suggests listing an absolute auction just like any other sale. While it can sell at any price, the listing price should state an opening bid. “Even though a property is going to sell at a fair value, adding a note in the general comment area stating that it’s a beginning price will give interested parties a general price idea.” Preparing a Buyer for Auction For any prospective buyer it’s essential to fully understand the terms of an auction, especially that the property is sold as-is with no contingencies. If financing is to be used, buyers must be prequalified for the anticipated price and ready to hand over a 10% deposit check as soon as the word SOLD is heard across the auction room. July 2008 19
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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