Sagging prices for commercial and residential property have sparked an uptick in business for many real estate Auctioneers, National Auctioneers Association members say.

Lower prices have lured potential buyers and investors to auctions in search of bargains that were unheard of just a few years ago.

Jay Edwards, AARE, of Jay Edwards & Associates, Bel Air, Md., says he conducted 25 real estate auctions bringing in $4 million during the first quarter of 2011 — a 30 percent increase over the same time last year.

Tom Hirchak Jr., CAI, MPPA, of Thomas Hirchak Co., Morrisville, Vt., says not only is his business up compared to last year, but returns that he has been able to secure for his clients often are far from bargain-basement prices.

“We’ve sold things for twice what our sellers want,” he says.

John Kurtz, CAI, of Kurtz Auction & Realty Co., Owensboro, Ky., even has seen a spike in prices for agricultural real estate.

“I think there is new money investing in farmland,” he says.

Get the complete story from NAA Auctioneers at www.auctioneers.org/auctioneer.

Commercial Property Auction – 5700 Old Rutledge Pike, Knoxville, TN

The team at StanRich Auctions invites you to join us on April 30th at 9:30 a.m. for a commercial property auction at 5700 Old Rutledge Pike in Knoxville, TN.

This 1.5+ acre corner lot screams location, location, location!  The commercial property is perfectly placed on the major thoroughfare of Rutledge Pike near I-40 and I-640.  Reported traffic counts for this commercial property are well over 16,000/day!

This commercial property also offers a corner location with controlled traffic, superior visibility and road frontage, excellent community demographics and public utilities.

The projected uses for this commercial property are limitless with the large parking areas, visibility, and two existing structures available for renovation, if the new owner so desires.  The zoning is Business and Manufacturing/Industrial which provides the buyer a practically unlimited number of uses for this valuable location.

Our sellers have enjoyed the benefits from this commercial property and have chosen to move forward with other business ventures. They are motivated to sell and interest rates are attractive. Be a buyer and position yourself to take advantage of the commercial real estate market as it moves back into positive territory.

Join us Saturday April 30^th at 9:30 a.m. for this commercial real estate auction, and seize an opportunity to invest in commercial property that offers immediate value, as well as tremendous long term upside potential.

See you there…

Multi-Parcel Auction chosen for Bank Owned Properties – Middle Tennessee.

We recently had the opportunity to work with a local county bank with a book of foreclosures.  The bank had accumulated nearly $3.2 million in foreclosure inventory and was searching for a way to quickly clear some of these properties from their books.

By using the multi-parcel auction method, the bank was able to offer several properties for sale with less marketing costs involved.  We educated the bank on the multi-parcel method of auction, which allows us to build an accelerated marketing campaign around several properties, while incurring only one marketing fee.

When using the multi-parcel method, the auctioneer can advertise the selected properties using one brochure, and one layout for each print advertisement, which drastically reduces marketing fees compared to advertising each property individually.  This also allows the bank to offer more properties for sale at one time.

Other advantages to the multi-parcel method of auctions include:

• Properties are sold “As-Is”
• No contingencies on financing, repairs, inspections, loan approvals, etc.
• All properties offered on one day
• 60 days or less from contract to closing
• Bank reduces long term carrying costs by liquidating properties quickly
• Buyer’s compete with each other at the same time, driving up the purchase price

The multi-parcel method of a real estate auction can work for individual clients as well as banks and investors.  More questions about multi-parcel sales?  Send me an email and I’ll be glad to discuss it with you.

Take care…

Retired Couple Seeks Auction to Relieve Burden of Second Home – Middle Tennessee.

Shortly after the real estate market crashed we had the opportunity to work with a retired banker and his wife from the Knoxville area.  They had moved into a smaller home in Knoxville from their larger estate outside the city.  All of the children were grown, the couple had each successfully retired after many years of service, and were ready to travel and enjoy life!

One problem holding them back… the time consuming upkeep & worries of their vacant rural estate.  Once again, the home had been on the market for over a year, overpriced and market worn.

They initially had listed the home around $400,000 and had incrementally reduced it to $365,000 when our auction company was brought in to evaluate the property.  The retired couple readily admitted that it had been listed too high to begin with.

The 3,200 square foot estate came with approximately 3 acres in a well maintained subdivision.  We decided the property would best be sold as two separate parcels, the home and 2 acres and a separate 1 acre building lot that posessed its own road frontage.

The conversation went something like this:  The retired couple asked, “Do you think it will bring $250,000?”  The agent stated, “It could, but I’m confident it will bring $200,000.”  The couple responded, “Let’s do it.”

We implemented the accelerated marketing method including full color 4 page brochures, large full color newspaper advertising, 4×4 auction signs, several internet posts, video tours, property information packages and much more!

On auction day a crowd of approximately 20 prospective bidders gathered to compete.  After the dust settled and the smoke cleared the property had grossed a sales price of $275,000!

The retired couple had not attended the auction but had been at a neighbors house just a few blocks away.  As the drove up and we revealed the news, the wife let out a big sigh and said, “Thank you so much! What a relief!”

Although this property achieved a greater price than expected at auction, unloading the burden of the time invested and constant worry meant more to this couple than anything else that was done.

For a retired couple, who wants to get on with enjoying life after their long careers, a real estate auction may be your quickest and best solution.

Absentee Owner Succeeds With Real Estate Auction – Middle Tennessee 

Last fall we received a call from one of our RE/MAX alliances concerning a property in Manchester, TN.  This gentleman was an absentee owner who had moved out of the home two years ago and had let his son live in the home during that time. 

They had attempted to sell the property themselves for over a year with very few showings and no offers.  Two years later, the property had to go so that he could be relieved of the mortgage and clear other debts. 

More than 1 auctioneer had evaluated the property and we were all in a similar price range.  After viewing our specifically tailored marketing campaign and expertise, we became his chosen auction company. 

Little did he know that unfortunately his son had not been maintaining the property.  There was mold on the sheetrock and trim in the basement, huge water stains on the ceiling, the grass was nearly two feet tall, and the whole place smelled like a wet dog.  Not to mention that some hoarding tendencies were evident throughout the home.  There was a lot to do before auction day! 

This absentee owner made one trip to Tennessee from his home in Florida to evaluate what needed to be done in order to effectively market his property.  We were able to coordinate for him all of the local professionals to ready the home from repair men, to mowers and cleaners to name a few. 

Due to our marketing efforts there were a crowd of 30 or more people on auction day, with approximately 15 registered bidders.  We had an opening bid of $35,000 on this split-level home with 4 acres.  In about 7 minutes the hammer dropped and we announced the property sold for $107,800!  The buyer closed in less than two weeks and we were able to ship the closing documents and proceeds to the absentee owner. 

The absentee owner was not available to attend on auction day, and when I called to share with him what the property had sold for, his response was, “Unbelievable…. You guys are masters!”

Estate Auctions Are Valuable Tools for Families – Middle Tennessee.  The death of a parent or family member can be emotionally overwhelming, not to mention physically & mentally draining.

In an instant you are confronted with funeral and burial details, notifying family members, arranging travel, rearranging work schedules, and getting the kids out of school.  Once you have completed the memorial service for your loved one, as the Executor of the estate you are now faced with identifying and closing financial accounts and utilities, contacting attorneys, movers, cleaning services, probating wills, and the list goes on.

Now that you have completed all of those tasks, you may be left with a vacant home, full of personal belongings from this individuals past life.  What are you going to do with all of the belongings that they have collected over a lifetime?  Who is going to mow the yard while we list the home for sale?  Who is going to be available to check on the home to make sure it hasn’t been broken into or vandalized? What are going to be the carrying costs of insurance & utilities while we wait for the home to sell?  What if the property doesn’t sell?

These are just a few of the questions you must ask yourself, especially if the estate is not located in your home city or town.  A call to your favorite auctioneer should be your first step.  Auctioneers have developed a network of service providers from attorneys to movers, mowers to cleaners, and even grief counselors that can assist you in handling an estate.  They will provide you with a professional support staff that will relinquish much of the stress your are experiencing.

Choosing to have an estate auction is the best option for controlling time and the expenses incurred by the estate.  An auctioneer will provide you a marketing plan uniquely tailored to the real estate and personal property to be sold on the same day.  The interest created by personal property auctions generally serves as a catalyst for prices to soar when it comes time for the real estate auction.

By utilizing an auctioneer and the accelerated marketing method, in 60 days or less you will have the real estate and personal property sold and removed, the estate closed, and funds from the estate dispersed.  The stresses and worries of handling your family member’s assets properly are completely relieved.

When you find yourself in the middle of what seems the insurmountable task of handling someone’s estate, call an auctioneer.  We’re here to help.

Take care…

“What kind of gimmick are you pushing here?”, you may ask.  It’s no gimmick at all. This marketing approach is proven to achieve “True Market Value” for certain types of properties and situations.  It’s an accelerated marketing method that moves properties from contract to closing in 60 days with no contingencies on inspections, repairs, finances or otherwise. 

We are looking for agents to educate about real estate auctions.  We want to teach you how to identify these types of auctions not only to aid in generating more revenue for you, but also that you will be able to more fully serve your clientele. 

There are certain types of properties and particular situations that are better marketed as auctions than through a traditional listing.  Situations considered for auction may include but are not limited to the following:

• Needs home sold “As-Is”
• Wants to liquidate an estate
• Has a partnership or marriage break-up
• Relocating & needs to sale immediately
• Absentee owner/investor with vacant property

Types of properties that may be considered for auction may include but are not limited to the following:

• Vacant property – may encourage vandalism
• Land that my be subdivided/farm acreage
• Unique properties – unique designs, highly sought after locations, celebrity status, historical significance.
• High carrying costs to owner

Auctioneers must be proficient in not only the accelerated marketing method, they must possess the skills on auction day to read and approach prospective bidders, and engage the audience in such a manner to create competition among buyers.  Asking agents who specialize in traditional listings to conduct real estate auctions would be unfair to the agents and their clients.  Much like requesting that an auctioneer conduct a traditional listing.

However, when we work together, proficiencies and skills in each area are recognized and utilized.  You may be asking, “Justin, why would I take a referral fee from your company when there is a chance I might get this property sold traditionally?”  We’ve taken the guess work out of that for you.  You stand to make as much or more by referring auction properties to us as you would through a traditional listing.  Additionally, you do not hinder the opportunity to produce an auction that could be highly successful for your client. Other Realtor benefits include:

• Generates a list of ready, qualified buyers
• Offers clients and customers new selling and purchasing options
• Increases revenue and market share
• Assurance that property will be sold at true market value
• Property is sold within a relatively short period of time
• Exposes the property to many potential purchasers
• Auctions bring people in to look at all your listings, not just the auction
• Successful auctions result in referrals and return business [Source: Auctions: The Basics and the Benefits, Realtor.com]

Finally, out of the available auction companies why should you choose to refer auctions to us.  To humbly provide credibility for my coworkers and myself, let me add that we are, by the grace of God, repeatedly hired by the largest firms in the world to conduct their auctions.  Some of these include Real Estate Disposition Corp (R.E.D.C.) who sold over $3 billion worth of foreclosures over the past 2 years, Barrett-Jackson “The World’s Greatest Collector Car Event”, and Keeneland Thoroughbred Sales who sell approximately $200 million worth of thoroughbreds in 2 weeks.

Our expertise is unrivaled, our professionalism & integrity unmatched, and our accelerated marketing savvy is second to none.  Let us put this knowledge and expertise to work for you and your clients.  If you live outside the state of Tennessee, our national networks include International Champion, World Champion, and Hall of Fame Auctioneers that we would be glad to connect you with.  Watch our website later this spring as we roll out the benefit package for our “Preferred Realtor Network”. 

Talk to you soon… 

Justin Ochs, President 

“Choosing the right auctioneer to handle your auction often makes the difference.  With a passion for excellence and extraordinary performance, Diamond Ochs Enterprises, your Tennessee Auctioneer, works to secure the highest dollar for your assets…”