10 Myths of Real Estate Auctions – Myth 6

Myth 6 – An Auctioneer needs to be a licensed real estate agent to sell real estate at auction.

This is one myth that is quite an eye opener. In the State of Kansas, a real estate license is required to conduct a real estate auction. In the State of Missouri, all you need is $52 and a pulse to be a licensed auctioneer and be able to offer real estate at auction.

Other State laws vary, and in fact some States have very strict laws and guidelines, while others do not. It is important to know this if you are interviewing a real estate auction company.

Following are a few questions that you should ask in regards to licensing and professional standards when speaking with a real estate auction company.

1. Are you a licensed broker or agent? If you are an agent, who holds your license?
2. Are you a member of the local real estate board?
3. Are you a member of the local MLS?
4. Do you post your auctions on the MLS?
5. Are you required to attend continuing education courses in real estate to keep your license active?

A professional real estate auctioneer will be able to answer all of these questions properly.

It is important to know who you are doing business with.


2 Responses to 10 Myths of Real Estate Auctions – Myth 6

  1. Scott Shuman says:

    Depending on what type of real estate auctioneer you are #3 & #4 may not be a factor. If you are selling residential I would guess it is a must. If you are selling investment properties where the seller is outside of the market area it may be less important. For example, many farmland buyers will most likely not find the farm on the local MLS and conversely, the brokers that are members of the MLS typically do not have a clientel that is searching for farmland. Just a thought.

  2. robmayo says:

    Good points Scott. The value of the MLS is the syndication, and the opportunity for the listings to be sent out to many websites regardless of the property type. We have had great success from buyers of all property types finding our listings on other websites that originated from the MLS listing. I agree that the value decreases for certain property types. Thank you for your input.

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