July 4, 2011
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.
May 31, 2011
Myth 2 – The property is distressed, something must be wrong with it & I won’t find out until I buy the Property.
It is true that one of the primary reasons a Seller will choose the auction method of marketing, is the benefit of selling the property “as-is,” without contingency upon inspections.
However, this does not mean that the condition of the property is being hidden from the potential buyers. In fact, a reputable real estate auction company will use disclosure forms and encourage the seller to disclose all known defects or issues with the property.
In addition to encouraging full disclosure, a reputable real estate auction company will also give ample opportunity for inspections prior to the auction. This allows the potential buyer to make a determination of value based on their own inspections, or an inspection from a hired professional.
As real estate auctions have continued to grow in popularity, more and more sellers are taking advantage of the benefits of auction, and are considering the auction method of marketing as a first choice, not a last resort.
While it is common to see bank owned real estate auctions of distressed properties, you will also find that luxury homes, unique properties, bread and butter suburban homes, and a variety of different properties are sold at auction every day.