While many may still view auctions as a way to dispose of distressed property, the California Association of  REALTORS®, wants consumers to know that auctions actually are a popular and proven way to sell land, commercial, and healthy upscale properties. With rising inventories of homes on the market the challenge of attracting buyers is alive and well. In some cases, it can take months to figure out what price and which combination of concessions will attract an offer. Some sellers can’t wait that long.

Our state association believes that auctions can result in faster sales and prices that more accurately reflect today’s market. The whole auction process can take as little as 30 days to sell a property.  I believe that an auction format offers buyers and sellers opportunities that differ from traditional real estate transactions. For buyers, an auction is quick-paced and exciting, and keeps participants engaged with the anticipation that the property of their dreams may actually be just one bid away. For sellers, a real estate auction may be more appealing than a conventional sale, especially in cases where the seller needs an immediate sale – for example, during a divorce, clearing of estates or when health issues arise. The numbers prove that auctions are becoming more popular in the real estate market. The value of residential and commercial properties sold at auctions grew more than 46 percent from 2004 to 2007. In 2007, the real estate auction market as a whole generated more than $58.4 billion in sales, according to the National Auctioneers Association. Auctions are often divided into two categories – absolute and reserve. An absolute auction means that a property will sell the day of the auction to the highest qualified bidder. A reserve implies that a property has a low-end limit, or minimum set price.  NAR (National Association of REALTORS®) and its members at the national, state and local levels continue to endorse auction marketing as a viable sales and purchase option.  We are seeing more and more auction here in The Inland Empire and many homeowners are happy they have another option.