Auction- Is it the answer?

Last weekend I attended the Coastal Auction at the Marriott. I was amazed to see about 200 people there. There were about 60 properties on the block. The first two properties up were absolute. Two condos went for $70,000 and $74000. That was probably not a bad price for either party. But from there the activity dropped. The auctioneers struggled to try and get bids of any kind on all sorts of properties. They resorted to asking for any kind of minimum bid and on some properties this did work; but for many that did not even bring in a bid. I heard only 7 properties actually sold out of the 60. I don't think the auctioneers were very happy with the result produced. They had spent over $100,000 in marketing and then also had the cost of the function itself. Bottom line is it helped many sellers find out what buyers thought of their property. I think there will be many more auctions, but I think that it will more likely be the Auction Company making what little money there is to be made. They get the sellers money upfront for advertising. And then the sales pay for the event and the profit. Seems to me the seller is best to go ahead and reduce the price of their property enough to get action rather than paying in advance for marketing that will still only produce a sale if it is at a steal price!

Posted: 4:30 PM, Oct. 4, 2007

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RE: Auction- Is it the answer?

-FOR IMMEDIATE RELEASE-

National Spotlight to Shine on Local Real Estate Market as Real Estate Reality TV Show Makes its Way into the Grand Strand

Myrtle Beach, SC October 24th, 2007--The dwindling real estate market in Myrtle Beach has seen its share of national media attention with record numbers of properties entering foreclosure and nervous sellers looking to jump ship, with no place to land. Now, the inevitable has happened. Reality television is claiming its place in the center of all the attention.

The show “Making a Millionaire: Realty Reality” is based upon a group of savvy real estate investors taking an “average Joe” and turning him into a millionaire. They have allotted a period of 12 months to do this and the show has untold masses of people across the country on the edge of their seats to see how they plan to do it. All told, a total of 12 episodes are slated to be filmed in the Myrtle Beach and Charleston area. The real estate ‘dream team’ plans on highlighting each episode with numerous creative ‘tricks of the trade’ for generating income through real estate-all for one lucky individual, whose wallet will leave a million dollars thicker.

“Our intention is to prove that anybody can become a millionaire, if they will follow a few simple steps. We will demonstrate that we can take a low net-worth individual and, given the proper knowledge and supervision, turn him into a money-making machine,” says the show’s creator. “It’s no secret that our national economy is on life-support. But for a real estate investor, a flat-line economy spells an opportunity knocking the door off its hinges.”

Local filming of the show, for an episode titled “Lights, Camera, Auction” will take place Friday, Saturday and Sunday, Oct. 27^th-29^th at various locations throughout Myrtle Beach. The show will be filming live during Executive Auction Firm’s Myrtle Beach Real Estate Auction Expo, where over 70 properties will be sold at auction. The producers of the show have directed anyone interested in attending the event, and being on the show, to contact Executive Auction Firm, Inc. at 843-839-9855 or through their website at www.executiveauctionfirm.com

Contact:

J. R. Bass 843-839-9855

jbass@executiveauctionfirm.com

Posted by Executive Auction FIrm Inc. at 3:45 AM, Oct. 24, 2007

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RE: Auction- Is it the answer?

The problem with just reducing the list price is that there's no upside. There is with an auction. No one will pay a penny more than an MLS list price. Whereas at an auction, competition may well take the price higher. That upside makes the auction a good solution rather than just a discount on the list price.
Posted by Anonymous at 12:55 PM, Nov. 6, 2007	Link

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