What Is It?
Auctionbyseller.com is a consumer
friendly real estate auctioning resource and
technology platform that enables
you to sell your home faster and save money.
Non-Distressed Property Auctioning is the future of Real Estate Sales
In my article 2007 article entitled, “I’m mad as hell and I’m not going to take it anymore,” (http://www.auctionbyseller.com/mad-as-hell.html), I explained why the real estate down-cycle that began in early 2007 was the beginning of a “watershed” event.
For the many reasons cited in that article, this watershed event was a harbinger of things to come (pre-financial markets implosion of October 2008), and that its psychological impact would lead to a paradigm change in the way consumers looked at traditional real estate transactions. At the time, I wasn’t sure what form this paradigm shift would take, but I knew that significant changes in how consumers bought and sold real estate was on the way.
Needless to say, the financial markets implosion in 2008 cited above only further exacerbated consumer frustration with traditional real estate sales practices. This coupled with the ensuing real estate “structural price correction,” after a century of normal real estate business cycles, forced many consumers to both revaluate real estate as a percentage of their personal wealth and how they might buy and sell real estate in the new millennium.
So what have been the historic real estate consumers’ options when it comes to buying and selling real estate?
Real estate consumers’ traditional transaction options include the passive Realtor listing approach, For Sale By Owner (FSBO) efforts, and auctioning. While enough has been said about the pros and cons of the first two approaches, and any readers interested in more detail on those approaches can request our “Steps to Selling a Home” guide (http://www.barrettassociatescorp.com/content/view/84/282/), let’s take a closer look at the auctioning approach.
In my opinion, there is an historic negative bias in the United States when it comes to the auctioning of real estate. While real estate auctioning has been a normal, mainstream approach in the U.K., South Africa, and Australia for many decades, there has been, and continues to be a stigma associated with real estate auctioning in the U.S. Why is this?
Exotic art, cars, and Jewelry have been sold via the auction process for centuries. Since 1929, our American way of life has been financed by the auctioning of Treasury Bills, Bonds, and Notes. And with respect to these products and financial instruments, auctioning is the preferred and most efficient manner of sale. So why then is there so much stigma associated with the auctioning of real estate in the United States? The reason seems simple.
Historically, and especially since the S&L crisis of the late 1980’s real estate auctioning in the U.S. has primarily been applied to distressed real estate product such as foreclosures and bank-owned properties, and this certainly holds true in today’s marketplace.
I founded the “AuctionBySeller” ( www.AuctionBySeller.com ) family of online, non-distressed, auction platforms in 2007 to provide a fourth, price competitive, and viable real estate transaction option to those frustrated with the three traditional approaches to property sales cited above. Since that time, our model has been performing for our clients.
Change is constant and those who fail to change, evolve, and embrace new business models are often left in time’s wake. An entire new generation of real estate consumers are rejecting the traditional real estate transaction approaches, using technology to circumvent real estate intermediaries including traditional auctioneers, and looking for more efficient ways to buy and sell real estate in these challenging times.
We believe that our new, non-distressed, online real estate auction model is sustainable and will continue to be embraced by real estate consumers even after this severe real estate price correction has stabilized.
November 21, 2010
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