Brokers have an interest in auctions because they represent another way to assist buyers and sellers.
For brokers, an auction is simply another marketing tool, a way to get a property bought or sold. However, unlike other forms of marketing, auctions have a number of unique characteristics that make them especially attractive.
One of the benefits that buyers, sellers, and agents can enjoy from an auction solution is not having to sign a long listing agreement or deal with contingencies.
Another benefit is that auctions are normally as-is so everyone puts their best foot forward the day of the sale.
A common challenge that agents and brokers who are new to auctions may run into when they are working on an auction sale or purchase is that they may not be receiving their commission directly from the deal during a foreclosure. Another common challenge is that, usually, they’re not always able to view the property before the auction.
There are some instances where a commission isn’t listed/allowed (as in foreclosures). One thing that an agent should be sure to do is talk to your client about the situation. Don’t NOT take the client to the auction because you’re afraid of not getting paid. Talk to the auctioneer ahead of time. If your buyer ends up buying the property and CLOSES, find out if the auctioneer will make a deal with you out of their cut. Another solution is to work it out with your client to take care of you.
If you are an agent considering breaking into this niche of real estate auction brokerage, do your homework.
Begin by going to others’ auctions. Check out all the websites you can. Do all the footwork to see what is out there and immerse yourself in the experience.
We are noticing that this could be a new niche for brokers.
There are already brokers that specialize in such areas as neighborhoods, condo projects, HOAs, farms, commercial properties and office leasing. Why not be a broker that specializes in auctions? At this point, auctions are a growing factor in the real estate marketplace, yet not often a broker specialty.
Looking toward the future, it makes sense that more brokers will want to learn more about and participate in auctions for the very simple reason that auction activity is growing.
Paul E. Saperstein Co. has served the auction industry for over 57 years. As experts in the field we provide our clients and customers with solutions and assistance on a case by case basis meeting specific needs. We handle the scheduling of the sale, create a marketing plan, compile all of the pertinent information relating to the property, and generate maximum exposure to sell the property to third parties.
For those looking for the highest level of expertise and professionalism in the industry look no further.