What Sellers Need to Know to Auction their Property in Portland, Oregon.
Posted on: May 22, 2007
Click here to read my previous post: The 101 to Selling Your Home through Real Estate Auctions in the Current Portland Market
The catch is that sellers must agree to offer the property up for sale at a price appreciably below what it is currently worth. This effectively creates an artificially hot market for one piece of property, or a micro seller’s market. In order for this to work, the price must be at least 5% below the actual market value. The key words are “actual market value.”
The property should be fully exposed via the multiple listing service, an open house, signs and web promotion. However, it should be for a very limited timeframe. With the technology available today, a property can be fully exposed in a matter of only 5 days. A property listed on Wednesday can be advertised, entered into the Multiple Listing Service, and held open on the weekend, which is all a good listing really needs to generate multiple purchase contracts. (Remember, our subject property is intentionally listed below market value!) With electronic updates and listing alert systems in place, every REALTOR (and most prospective purchasers) knows when new properties hit the market. Pre-approved buyers are always ready to move forward when a hot listing becomes available, especially if they lost out on a deal recently by waiting too long. In fact, the best motivator in the open market is the concern that a good home will slip away. The excitement builds upon itself as these prospects and their brokers begin to generate the paperwork to tie up the home. This is where the auctioning begins. Stay tuned for a detailed description.
Click here to read the detailed description.
Article written by Don McCredie, G.R.I., CRS, is the owner of portlandrealestate.com. He is a Life Member of the Million Dollar Club and a past REALTOR of the Year for the Portland Metropolitan Association of REALTORS. Currently, he serves as the Broker/Owner of EXIT Acclaim Realty and can be reached at 1-800-203-9898.