Glossary

The following is a glossary of real estate auction terms developed by NAR's Real Estate Auction Committee, the National Auctioneers Association, and the Auction Marketing Institute. While it is a real estate glossary, most of the terms apply to all types of auctions.

AARE
(Accredited Auctioneer, Real Estate)

The professional designation awarded by the Auction Marketing Institute, Inc. to qualified real estate... Read More

Grab the Auction Opportunity

No Longer A Last Resort

by THOMAS SATURLEY, CAI, AARE
Auction Properties, Ltd.
Portland, ME

Across the country, real estate professionals are increasingly turning to the auction as a winning marketing tool. If you properly qualify your situation as a potential auction scenario (we’ll tell you how), you have an excellent chance at turning over a property quickly.
... Read More

What properties are suited for Auction?

What Properties are Suited for Auction? Ever wonder how you can tell if a property is well suited to auction? Think of your listing, then take the Two-Thirds Rule test!

Q. What properties are suitable for Auction?
A. Most properties are salable by auction. All types of real estate, including residential property (e.g., town homes, condominiums, cooperative apartments and single-family homes), commercial and industrial property, vacant land and even boat slips are sold at auction. Not all... Read More

What Factors Impact the Success of a Real Estate Auction?

What Factors Impact the Success of a Real Estate Auction?

Auctions Are Often Thought of as "Fire Sales" For Properties in Distress. Is this True?

Until recently, real estate auctions, unlike art and antique auctions, have experienced unfounded negative images in the marketplace. The majority of auctions today don't result from foreclosure of distress situations, but rather are the result of a seller choosing a cost-effective,... Read More

Types of Auctions

Q. What are the different types of Real Estate Auctions available to me?
A. Essentially there are three types of auctions:

1. Absolute Auction (or auction without reserve)
1. The property is sold to the highest bidder, regardless of the price.
2. Since a sale is guaranteed, buyer excitement and participation are heightened.
3. Generates maximum response from the market place.
4. Many sellers, including financial institutions... Read More

How To Get Involved In Auctions

There are several ways to get involved in real estate auctions:

Agents/brokers refer clients or customers
Be a cooperative agent/broker
Be a listing agent/broker (co-broker)

OPTION A: Agents/Brokers can refer clients or customers

A real estate agent or broker can refer a seller to an auction company and receive a referral fee. The referring agent or broker may also be instrumental in convincing the seller of the merits of auction.

Responsibilities of Referring Agent/Broker:

Help seller analyze... Read More

The Basics & Benefits

Q. What is a Real Estate Auction?

A. A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property—most certainly including those that are nondistressed—through open cry, competitive bidding.

Q. How will auction benefit me?

A.The real estate auction is a win-win proposition for everyone involved.

BENEFITS TO THE SELLER:

Buyers come prepared to buy
Quick disposal reduces long-term... Read More

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