Auction And Ebay Articles

Property Auction & Why You Should Run A Mile From Them

That's A Funny Thing To Say About Property Auctions; They're All The "RAGE, Aren't They?"

From The Desk Of Colm Dillon

Hello Colm here ...

So why would I make such a comment like that; I mean, they're happening everywhere, aren't they?. They're even on TV. property auction,

So let's go back a bit. Can you remember back to when they were a rare happening. Some big house owned by the local rich family or the farm or antiques; that kind of thing. property auction,

Now it seems to be just about every three-bedroom homeowner is being convinced to sell that way. property auction,

So let's look at what or who has driven this upsurge, and why they would have done it? property auction,

I like to go back to basics and ask the Question; Who Benefits? Because whoever benefits, you can bet they're the ones driving the "A" truck, and are trying to get us all up on the tray property auction,

It's the media barons folks ... the major newspaper and TV owners have convinced the Real Estate Agents to push you into auctions, because it generates BIG ADVERTISING REVENUE. property auction,

Newspapers don't make money out of the news. The NEWS is only the reason they can sell advertising and it is from advertising that they make a profit. property auction,

The Real Estate bosses have fallen for their line hook line and sinker. Agents have become advertising salespeople for the newspapers. property auction,

So why does the big "A" appeal to the big real estate bosses? property auction,

1. It brings a sale process to an end with a definite date ... the "A" date. property auction,

2. The agent doesn't have to commit to an achievable sale price. property auction,

3. The normal sale process is hard work requiring a higher skill level. property auction,

4. The client pays all the advertising up front.

5. Advertising makes the Agency look big and successful, but with Client's Money. property auction,

6. All the pressure is put on the client to sell. property auction,

7. Failed auctions don't get advertised in the mediaproperty auction,

8. They earn commission from the newspapers for selling advertising for them. property auction,

It brings a sale process to an end with a definite date ... the "A" date. property auction,

It sells or it doesn't sell! Accordingly it's relatively easy for the agency boss to estimate his income from a regular flow of auctions. property auction,

Private Treaty sales require individual inspections and negotiations and an end date is not easy to determine. property auction,

The agent doesn't have to commit to an achievable sale price. property auction,

At the auction sales presentation, you the owner, would like to know 'What Price" you will get for your property. property auction,

The answer is always,'THE MARKET.' And of course, so the story goes, THE MARKET will usually recover the advertising expenses you must pay up front; especially for a beautiful house like yours. property auction,

The normal sale process is hard work requiring a higher skill level. property auction, The agent, therefore, does not have to give you a possible range, within which your achievable price will fall. By definition this allows the agency to employ people with high sell 'the auction' ability but reduced real estate experience. property auction,

The client pays all the advertising up front. property auction,

OH, did I mention that you now have to part with a Substantial Cheque of many thousands of dollars in order to promote your property. You will be presented with a well-prepared advertising campaign. Your only choice will be the 'pink one' or the 'yellow one.' property auction,

That is the $7,000 one or the vastly superior $11,000 one. If your house is a high price ticket, you can double these costs. property auction,

Advertising makes the Agency look big and successful, but with Client's Money. property auction,

OK, the campaign is off and running and you first advert appears in the Color Pages. Yes it is small, isn't it? As a matter of fact the most dominant FEATURE on the page is the AGENCY'S NAME. Then, of course, we have the sales person's photo, perpetuating the 'cult of personality.' property auction,

Oh yes, then there is the picture of your house and a few lines of description in typeface you can just read. 'Umm,' you think, 'maybe I should have gone for the bigger size ad. property auction,

Let's move on to the day just before the auction, and when all your money has been spent. The agent and the auctioneer visit you and tell you that there has been a good response to the advertising. Of course, you don't have a clue what quantifies as a 'good response.'

'We need to establish a Reserve Price" they continue. As someone once said, 'please explain?'

Oh, it's the minimum price you would accept! 'But.' you say, 'I didn't go to auction to get the MINIMUM PRICE, I want the MAXIMUM PRICE; what's this minimum price business?'

'Well,' says the auction agent, 'now that we have completed this big campaign for you,' they continue, 'you want a result don't you, so let's not send the people who turn up get away.' 'No,' you should reply, 'I don't want any result, I want the best price plus my advertising cost back.' Question! How well do you sleep that night?

All the pressure is put on the client to sell.

Let's skip now to the BIG DAY, and ask the question, "who is under the greatest pressure, you or the agent? I THINK IT 'S YOU!

How many will turn up? Will they be 'Tyre Kickers & Sticky Beaks'? I've just spent thousands of dollars to get to this point. Boy I hope we sell, and MOST IMPORTANTLY, sell at a great price. A price that will beat the price I could get just selling it normally + my advertising costs.

THE AUCTION

Let's just say that the ideal prices for your home is $550,000.00, OK!

In the crowd there are a number of genuine buyers, whose profile range from:

* Investors (who want to steal your property for a low price, say $100,000 under)

* Normal home buyers (who will pay a fair price, say $520,000.00)

* And finally there is one 'heart' buyer who will pay up to $580,000.00).

Once the auction starts it is easy to see how the investors get knocked out of the bidding, after all they are only there to grab a bargain when an auction fails and the seller is desperate. But they do get the ball rolling.

Next the bidding stops at $520,000.00 where the normal buyer has reached their limit. They get knocked out as soon as the Heart buyer goes another $5,000.00.

So your house is now at a bid of $525,000.00 with no other bidders to get it up to the possible top bid of $580,000 which is the capacity of the person who last bid.

The auctioneer will now halt proceedings and have a private "pressure" chat with you. Now remember you do not know the highest bidder can go higher.

No matter what words come out of his mouth the essence will be,'the best bid I can get is $525,000.00 and no matter what I say I cannot get another bid. So do you want to sell at $525,000.00 or not?'

I did mention pressure earlier on. Are you beginning to feel it yet, after all, you have spent thousands of dollars, and now you are $25,000.00 under the price you wanted. If you say NO the audience walks, and you are left with a debt, and the hope of selling privately after the auction.

Failed auctions don't get advertised in the media.

Now comes the next problem. As an auction is such a PUBLIC event, all the agents and all the neighbors know at what price your auction failed. So I'm sorry but that failed price is now "THE PRICE" AND IT IS HARD TO GET PEOPLE TO PAY MUCH MORE AFTER AUCTION.

Ever notice how auctions that fail never seem to be newsworthy. Well, you see, it's bad for the organization that has a vested interest in promoting auctions. If you happen to own newspapers and a TV network you could always create a program and why not call it Auction.

Just like any soapy, before long all the people start to believe in auctions. They can even see themselves as being the person on TV. But folks we have to remember that it is ENTERTAINMENT.

They earn commission from the newspapers for selling advertising for them.

Remember I told you that the agents who promote auctions are really working for the newspapers, so naturally they're entitled to be paid? As a matter of fact their employers are so happy that they put on a big annual celebration black tie dinner.

And they give out prizes and plaques. So when you go into a big agency's office have a look at the plaques on the wall. "For the Agency that booked the biggest Dollar Value Advertising for the Month – Year; For the Agent within the Agency who booked the biggest Dollar Value Advertising for the Month – Year etc.

You bet, every little dedicated worker gets a prize. They unfortunately don't have a prize for the Agency that rebates the newspaper kick back commission to the vendor!

And so we end the sorry saga of:

Auctions & Why You Should Run a Mile From Them?

Are You Saying Auctions Should Never Be Used for Selling Property?

No. I am not saying that at all. If you have a unique property that has features that may only appeal to a limited number of people in your immediate market, then you should auction.

The vast majority of Aussie Home sellers can get a better and cost effective result from selling by normal Private Treaty method. Remember it is the Net Result after all costs that ends up in your pocket.

And I did mention the 'pressure' of the auction process and the 'public profile' of the failed price does not work in your favor.

PS: The correct way to sell your property is by Private Treaty with a knowledgeable real estate agent with whom you are comfortable and in whom you have confidence.

The Real Estate Development Coach

Copyright Colm Dillon, October 2003
All Rights Reserved.

Colm Dillonauthor of "Residential Development Made Easy" the only 'How To' Become a Developer eBook, selling in 38 Countries, has developed $1.2 Billion worth of real estate - read more on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html

Other Article Sites

findabook.com  moneycd.info  a-mortgage.info   about-lemon-laws.info  aboutstudentloans.info
all-about-publishing.info  auctions-articles.info  bestcollege-university.com  bestispconnection.com
biblefolder.com  blogger-website.com  books-used.info  brokers-guide.info  buywindows.info  cable-dsl.info
career-miner.com  carpel-tunnel.info  cashinaflash.info  cashloanreviews.info  casinobell.com  chat-house.info
clearmycredit.info  collegeloantips.info  crones.info  depression-articles.info   dirnic.net  dishguides.info
divers-below.com  expodog.info   financewizz.com  fire-insurance.info  getgood.info  handleit.net   it-idea.info
health-supplies.info  hosting-right.com  insidealert.com  insurance-facts.info  jobs-employment.info
justgood.info  lookgold.net   lowcost-travel.info  money-source.info  myhostzone.info  numisblog.com
peoplesearchfinder.info  pr-articles.info  realeas.com   refinancing-guides.info  spyware-remove.info
telelot.info  the-law.info   toppaid.info  travel-deals.info  travelcorrect.com  wedding-guide-site.com
your-blog.info  your-credit.info

MORE ARTICLES:

Ebay Auction Selling Secrets - Using Ebay to Launch Your Very Own Highly Successful Website
Launching your very own successful website is the dream of many people worldwide because it is a new way to make money and be employed by oneself with little overhead. So, once you have your website you will need traffic to make it successful.

Ebay Car Auction Site ? Our Guide To Car Auctions On Ebay
An Introduction on eBay - eBay car auction site

RainWorx Auction Software Expands Sales for Independent Online Auction Websites
RainWorx Software released version 6.0 of their popular auction website application rwAuction Pro. RainWorx Auction Pro allows businesses to create an independent auction website with Standard and Reverse Auctions, Classifieds, RFQ, or Fixed Price Sales. Version 6.0 includes a completely rewritten invoice system for managing transactions between payers and payees for all users including website owner sales.

Ebay Auctions: Win An Auction
As you initially begin to sell in ebay auctions (http://www.auctiontrafficformula.com/), it can be daunting wondering how to obtain the largest number of individual viewers to see your postings. Naturally you must be certain to have complete and accurate descriptions and lots of good photos, but what else can you add to generate no-cost traffic which brings you a very large quantity of different visitors.

Reason why you should choose duration for Your Ebay Auction
When it comes to durations, you have a wide range of choices: your auction can run for 10, 7, 5 or 3 days, or even only one day if you have a good enough feedback rating.

eBay Auction Listing Titles and Auction Listing Headlines
Listing titles is used to attract visitors to your auction through search or directory results.

Secrets Of eBay Auction
If your eBay auction is for selling to businesses, then you need to figure out the business hours for all your targeted companies in your niche. A good reputation at eBay auction is worth its weight in gold, whoever was given an overpoweringly positive assessment by their customers at previous auctions on average achieves noticeably higher returns. eBay auction is a worldwide trading platform where over 147 million 72 million US registered individuals, small businesses and enterprises, buy and sell millions of items, in thousands of categories, from collectibles like trading cards, antiques, dolls, and housewares to practical items like used car.

eBay Auction Bidding Strategies--Overcoming the most Frustrating Situation on eBay
The Problem..

How Professional Ebay Auction Templates Can Boost Your Ebay Sales
Do you like to sell on eBay ? It's easy and fun, isn't it ? In fact, it's one of the easiest online business you can start almost overnight, without any major investments. That's the best thing about it.

Personalization Patent Goes Up for Auction on eBay
Patent makes targeted marketing more precise.

Six Steps Towards Successful Buying at eBay Auctions Six Steps Towards Successful Buying at eBay Auctions
Buying on eBay can be very rewarding, either in terms of being able to pick up items cheaply or for hunting for hard to find items. Although generally the experience is good, there are instances where things can go badly wrong. These tips, based on experience over the last seven years, should help to avoid some of the potential pitfalls.

Ebay Auctions: Some Of The Oddest Items Ever Auctioned
eBay has become the hotspot for people to sell strange items. Over the past few years, where eBay has grown from a virtually unknown web site to the leading online auction marketplace in the world, some very odd items and services have been offered up for auction on the site. Strangely enough, many of these strange items have sold for thousands even tens of thousands dollars. A few of these items have sold for six or seven figures as well. eBay does have a policy that it takes down any auctions that it sees as not legitimate, but still, it allows many of these strange auctions to take place. In fact, these strange auctions have become part of the culture in America as they appear in Late Night Television shows, comedic sketches, and in thou...

Ebay Auction Software: Automated Gold Mining For Auctions On Ebay And Elsewhere Using Software
You may already know how to grab great bargains on eBay and other auction websites because the titles are misspelled. In fact, you may spend a great deal of time hunting around for them, one by one. You may even know of a website or two that offers you a free list of these misspelt auction listings. Do you ever wonder if you're missing out on a bunch of them, just because it's too tedious to plow through them all by hand?

Ebay Auctions- Helpful Article For Online Auctions
Finding specific information about Ebay Auctions might not be easy, but we have gathered very helpful and relevant information about the general subject matter, with the ultimate aim of helping you out. Even if your search is about another Ebay Auctions information, such as agriculture auction, b2b auction, Odessa auto auction or even Michigan online auction, this article will prove very helpful, without saying a lot.