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.

Benefits of Home Based Business – 4 Things to Consider!

There certainly are a multitude of benefits of home based businesses although there are some drawbacks as well. But when one looks at the overall picture it would have to be said that the benefits certainly do outweigh the negative aspects. Now keep in mind, there is a lot of work and by no means am I stating that this is easy, it takes drive, patience and a focus like no others but over time, one starts to realize these benefits of home based businesses. 4 things to consider:

1) Financial Reasons:

To begin with it can be a real money saver in many different ways. When you think about having to drive your vehicle for example to outside employment you have to look at the cost of the gas, the insurance and the parking for example. Then most often a second family car is required because one car being the way to business all day. This is one of the major cost saving benefits of a home based business.

Money can even be saved on clothing when one doesn’t have to become dressed for business. This can be a good saving over the year as well.

Another benefit of having a home-based business is the fact that you don’t have the overhead costs. If you have your own business on land there are many extra costs that you are faced with. In addition to this it is much easier to do your marketing and advertising online than it is on land. Most often the cost is far less than on land based businesses.

2) Flexibility:

Then there is the flexibility that goes with the benefits of home based businesses. Most often you can work the hours that are most suitable for you, which means that if you have small children that you will not only save costs on not having to have a daycare program, but you will be able to enjoy the benefits of being with your children through the day and perhaps doing your work at night.

3) Priorities:

Most often individuals that work a home based business find that they are much more successful at their business because they can stay more focused. Many benefits of home based businesses include not having the hassles of travel and the distractions of being in an office setting. The benefit is that at home you can choose your office space away from the rest of the house, and this is where your work can take place.

4) You call your own shots:

You can decide products, supplies, suppliers, time lines, actions, reactions, prices, rewards, employees, hours, etc. all of which can take you down a good path or a bad path. One kink in the armor and all could be lost. But do not get discouraged, if you get yourself the right resources in training and mentoring then mistakes can be avoided. The mentoring part is key, here. Good training with no guidance is nothing but a shell… Be sure to get yourself into proven mentoring system with an actual person and the resources to follow through.

Another benefit of a home-based business is that you can even hire virtual secretaries as opposed to having extra staff.

When you add up all of the cost savings that we have just mentioned as well as the emotional benefits, one can find that benefits from a home based business is a substantial money saver. This means that you can take the time to allow your business to grow a little bit as you don’t have the financial pressure of all the costs as a burden.

You have much more flexibility from working at home, not only with the way that you run your business but as we mentioned in the schedule and times of operating your business. Without all the overheads and the concerns of an online business that certainly makes working at a home based business much more beneficial.

For those that are just thinking about starting a home based business there is much to think about, and it is worth doing some research into seeing if your online business would be a workable for you from home. The fact is, though, there are benefits to a home based business, it just takes work!

How to Get Started Selling Advertising On Your Website

When I began Christian Work at Home Moms in late 2000 it seemed like a natural thing to include advertising from moms who wanted to reach other moms with the business opportunities. I didn’t really have a strategy in mind; I simply stuck some ads on my website and waited for new advertisers to contact me. If you run a website or blog and would like sell ads on your site, here are a few tips from what I have learned over the years.

1. Assess your website

The first step to take to get ready to sell advertising on your site is to assess your website. Here are a few questions to research and think about:

Does your website’s layout have room available for ads? If not, what changes need to be made to accommodate advertising? Premium advertisers will want to be towards the top of the page. You can still sell ads below the fold (the part of the site that visitors must scroll down to see), but they will need to be less expensive. Make the best use of the space you have available.

What does your website traffic look like? Take a look at your statistics – how many visitors, unique visitors, and page views do you average each month? These are questions your advertisers will ask. The higher these numbers are, the more you can charge for ad placements.

2. Start Cheap

When I began offering advertisers I put several ads out there for at highly discounted rates. Since I had never sold advertising before I had no idea how visitors would respond to the ads and my advertisers were taking a risk just giving me a try. So, we started out very lost cost and built from there. In order to build your advertising base, don’t be afraid to do things like:

Offer free advertising. There is no better way to make it known that you are now offering ad space then to simply start putting ads out there. Find causes you support, people you want to help out or even affiliate programs that you are comfortable with and go ahead and get some ads out there.

Sell ads at discounted rates. When you’re starting out, it’s normal to offer advertisers low rates to get things started. Then, as your website grows offer monthly or quarterly advertising specials to reward advertisers and keep customers happy.

3. Don’t Be Afraid To Ask

I often get emails from magazines or other websites asking if I would be interested in advertising with them. If you are just starting to offer advertising, this can be a great way to recruit interested advertisers. In order to be successful this way, there are a few steps to take:

Research and find your target market. Contact people and businesses that make sense – those who will want to reach your audience.

Draft a well written email explaining your new advertising options. Include website statistics and ad placement rates.

4. Consider a Newsletter

If you don’t have a newsletter, my recommendation is that you begin one. Today. A newsletter does several things for your website: attracts repeat visitors, offers a way for you to contact your audience in order to make sales, and begins to establish you as an expert in your chosen field (if done properly).

A newsletter is also a great place to sell ads. The larger your mailing grows, the more you are able to charge for ads within. You can also offer special mailings so that advertisers can reach your mailing list directly.

Advertising sales start out slow for most of us. Unless you have a major audience that many advertisers are looking to reach, you will experience spikes and lulls in your advertising sales. However, if you stick with it and continue to grow your audience by offering great content you will eventually reap the benefits of your hard work.