Real Estate Auctions – The New Land Rush

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.

Real Estate Auctions Work in Up or Down Markets.

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.

You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction

Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.

Seller Confirmation or Reserve Auction

With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.

Passion – A Key to Your MLM Home Based Business Success

As a veteran network marketer and business owner who has walked the trail of tears, I am weary of the lies and deceit that pervades the industry.

Too many people join a MLM home based business based on the promise of wealth and fortune alone. They enroll with the simple idea that all they have to do is “sign up three who will get three who get three”. The concept sounds so simple that they jump right in, and after a short period of time, quit because “the system” didn’t work for them.

While MLM home based businesses have various compensation plans, the traditional MLM model of “three who get three who get three” is an example I am using here. It is a simple business model that looks easy to do. Simply, it is a business template that a company implements to help the company’s representatives market the company’s products and grow their business. The process of building a MLM home based business requires much more effort and desire to succeed than is seen on the surface.

While it’s true that there is potential to make a lot of money in this industry, it is also true that it takes time and effort to envision the opportunity as an ongoing journey. When people join a MLM home based business solely because of the promise of wealth and fortune, it doesn’t take long before they are checking out and are never heard from again. The reason? Greed is not a long-term motivator. Most want to get rich quick and when that doesn’t happen, they quit.

A Key to Success

In my opinion, a key to succeeding in this industry is having a strong belief and passion for the company and its products or services.

It’s interesting that many sales training books don’t elaborate on the need for belief and passion to succeed in business. I believe all of the attributes of a great sales person are backed by a passion of some type. In our case, passion is an intense, extreme, or overpowering feeling for a cause represented by the company’s products or services.

The authors of sales books talk about having the right mental attitude – that is, desiring, to succeed, setting goals and achieving them, and becoming a great leader. How do you find the drive to enact these without a passion for the MLM home based business – and its products – you have chosen to build? For example, how can you have a positive mental attitude about your business without having a belief and passion for it?

Too many people are brought into a MLM home based business because of the promise of an easy business to do and a ton of money to be made in a short period of time. Oh, the products and services are presented, but the major push is on the big money that can be made.

The challenges we all face

When beginning a MLM home based business, so many challenges lie ahead. Here are just a few that a new owner may confront:
· Complacency – many new business owners never get started. They are afraid they don’t know enough or don’t know where or how to start
· Anxiety and fear about sharing the business or the products and services to people, including friends and family – becoming a secret agent of the business. What will they think about me?
· Fear of rejection – a “no” for some people is a nail to the heart. They would rather sleep on nails than be told “no”.
· Fear of failing – nobody likes to lose. A few “no’s”, and the very thing that’s feared actually becomes reality.
· Negative self-talk – that inner voice saying, “I told you this wouldn’t work. What were you thinking, joining this business anyway?”
· Lack of strong leadership – another reason many people fail in a home-based business. No leadership and guidance means trying to do something that has never done before and doing it right the first time. That isn’t likely to happen.
· Giving up – it doesn’t take long for the new business partner to say, “Maybe this business isn’t for me. It just didn’t work out.”

When a person starts a MLM home based business for the wrong reasons — primarily greed, wealth and fortune, and the desire to get rich quickly — then all of the aforementioned factors will have an adverse affect.

When enrolling because of belief in the company, the MLM home business owner often has very positive experiences with the products and services offered and becomes a passionate evangelist for those products and the company. Add to that a strong leadership team that keeps the business owner plugged into the latest news and product information; teaches solid skills training; and consistently gives positive feedback and encouragement, a strong belief and passion slowly will begin to develop. This will go a long way in enabling endurance for the many challenges that lie ahead.

Passion will make a difference

Look at what can happen when belief and passion for the products and services are the key reasons for signing up for the MLM home based business opportunity:

· Because belief and passion are so high with the products and services, the business owner is compelled to share them with friends and family; thus, no longer operating like a secret agent.
· When belief and passion are the driving forces within the business owner, complacency no longer exists. Likewise, issues that once were barriers to getting started are now banished.
· Knowing that the fundamental purpose in any business is to “show and tell” the company’s products and services, the business owner understands that everyone does not have the same feelings about what is offered; everyone is not the niche prospect. He markets accordingly, letting the prospect be the one to decide if the products and services are right for him, and knowing that a “no” to the offer is not a personal rejection.
· Understanding that the mission of sharing the business and the difference it can make in the life of another person, the business owner discovers that the fear of failure and negative self-talk disappear when leading with passion.
· No matter how slow the start, the business owner understands that quitting is not an option, that owning a business is a long-term mission and there’s no challenge too big to conquer.

In all of the years I have been involved in MLM home based businesses, I have yet to see anyone climb to the top of the mountain and stay there for the long-term without a belief and passion. Oh, yes, I have seen people — through the passion of getting rich quickly — climb to the top, but it is built upon greed and not upon sound principles. Their business is built like a house of cards and in a short period of time, many fall apart.

It is imperative that anyone desiring to build a MLM home based business for the long run must have a passion for the company and its products and services. That passion will attract others who also want to be a part of the marketing campaign. They, too, will embrace the owner’s passion, and this will drive them to success, too.

Check out the top leaders who have been with a company for many years. Their passion for what they do will be evident. It is rare to find anyone at the top for any length of time just because they saw the money.

So, it is necessary that a potential home business owner — before signing up with any MLM home based business — must research the company to make sure it is all that is written about it. It is essential to use the products and services for a period of time to make sure that there is a positive experience with them. Check out the leadership and make sure they have the experience and a system that will insure success. And, finally, a potential MLM home business owner must ask himself if this is a business that he can believe in and could eventually have a passion to build.

It’s only when the answer is “yes” to these questions that signing up and becoming involved with any MLM home based business opportunity should even be considered.

Too many people get into this industry for the wrong reasons and that is why they fail. Joining for the right reasons will make a huge difference in succeeding or failing. Passion is a key reason for successful growth in any business – either a present one or a future one.

Differences in the Types of Auctions That Take Place Around the World

Auctions are those events where properties or goods are sold to the highest bidder. Auctions are mostly public events, where bidders make a series of bids and purchase a particular item for a high price. During auctions, bidders decide the price of an item rather than the seller. It depends on bidders to decide the amount they would want to pay for a specific item. During an auction, a bid is a proof of a legal binding. Bidders agree to pay the amount that they have bid. In a high profile auction, bidders may have to pay a deposit in escrow accounts or give a proof that they can pay for those items.

Types of Auctions:

Different types of auctions take place around the world. Below mentioned are some types of auctions:

1. English auction:
This is a basic type of auction. In this type, people can see the item and then start bidding. Bidders slowly raise the value of their bid until everyone gives up. The highest bidder is the winner. An auctioneer manages an auction, keeps records of the on going bid and decides the winner. Sometimes, the seller will quote a minimum amount for an item to the auctioneer, below which the auctioneer cannot sell that item.

2. Dutch auction:
In this type, the auctioneer sets a particular price and then gradually lowers the price. People in public will start bidding and later decide which prices are suitable for the item. A seller may use this type of auction to sell large quantities of same products to the public. For instance, a seller may want to sell a large amount of hay and will thus, decide to sell this hay to people for the same amount, once a reasonable price is decided.

3. Silent auction:
In this type, the bidders in public will present their bids in a sealed format. These sealed bids open at the same time and bidder with the highest bid wins. There could be a modification in this type of auction. The bidders are allotted a specific period to bid. They can roam in a room displaying the items, and write their bids on an associated sheet of paper. The bidders are allowed to see bids of other bidders and can choose a higher price for an item. At the end of the allotted time, bidder with the highest bid is the winner.

Examples of Auctions:

Auctions can be of two types either public or private. Sellers may trade any kind of items in both types of auctions. Some areas where auctions take place are:

1. Antique auction: An antique auction consists of a trade opportunity as well as provides entertainment.

2. Collectable auction: In a collectable auction, the seller may put up collectables like coins, vintage cars, luxury, stamps, real estate, and luxury for sale.

3. Wine auction: In wine auction, bidders can bid for rare wine, which may not be available in retail wine shops.

4. Horse auction: Bidders can bid for young horses of the best breed.

5. Livestock auction: In livestock auction, bidders can buy pigs, sheep, cattle, and other livestock.

The other examples of auctions may not be public. These auctions are for bidders from corporate levels. Some examples of private auctions are:

1. Timber auction
2. Spectrum auction
3. Electricity auction
4. Debit auction
5. Environmental auction
6. Auto auction
7. Electronic market auction
8. Sales of business auction

Bidders in an auction need to examine the items displayed and decide an appropriate price for an item. Thus, auctions help buyers in getting the best deals and in gaining better profits for sellers.


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