The newsLINK Group - Real Estate Auctions

Editorial Library Category: Real Estate Topics: Auctions Title: Real Estate Auctions Author: newsLINK Staff Synopsis: Auctions are nothing new. People have auctioned items in every country, century, and industry for thousands of years. Historians have even found records of auctions that were held by the ancient Greeks. Editorial: Real Estate Auctions 4064 South Highland Drive, Millcreek, Utah 84124 │ thenewslinkgroup.com │ (v) 801.676.9722 │ (tf) 855.747.4003 │ (f) 801.742.5803 Editorial Library | © The newsLINK Group LLC 1 Auctions are nothing new. People have auctioned items in every country, century, and industry for thousands of years. Historians have even found records of auctions that were held by the ancient Greeks. Romans around the time of Christ were also involved; Marcus Aurelius, who was an emperor and also a philosopher, used auctions to sell family furniture so he could pay his debts. The pilgrims starting arriving in the 1600s, and they brought auctions with them. They knew it was a fast, efficient way to turn goods into cash, especially the valuable furs settlers collected from Native Americans. That fur trade was an important economic spur for settling and developing North American. When it comes to real estate, U.S. auctions until the mid- 1970s were aimed at getting rid of properties that were distressed, which of course meant that the seller usually took a loss, the buyer got a deal, and auction companies took a percentage of the sale price for their troubles. Things have changed since then. There is even an association, the National Auctioneers Association (NAA), which was organized in 1949 and which has its headquarters in Kansas. The NAA has a strict code of ethics, provides benefits to its members that will help them advance their business interests, and also provides members with a variety of resources and educational opportunities. Auctioneers today can earn specialty designations. Some of the most important ones are as follows: » Accredited Auctioneer Real Estate (AARE). This designation is for people who have been in the auction industry for at least two years. Among other requirements, those who possess it must also have a real estate license and either complete 10 real estate auctions or have $3 million in aggregate sales in less than three years. » Certified Auctioneers Institute (CAI). The CAI designation is the most respected designation possible for an auctioneer to receive. It involves a rigorous three-year program, and participants must be approved by the CAI committee before they can enroll. » Certified Estate Specialist (CES). Estate liquidation is something that requires specific skills. Those who receive this designation are trained to work with family members, accountants, and lawyers when an estate is being settled. » Graduate Personal Property Appraiser (GPPA). This designation is for appraisers. Those who earn it receive training in all aspects of making an appraisal; must complete classwork and assignments, pass tests, and submit two appraisals less than 90 days after class; and update skills regularly. Some people have argued that auctions for non-distressed properties are unnecessary and that those who are in the market for real estate have no need for, or interest in, any kind of real-estate auction. This is narrow thinking. People don’t need any product or method until they see how it can benefit them. Although auctions are not for everyone, that doesn’t mean they can’t play an important role in the sale of real estate. According to a paper written by Steven L. Good and Celeste M. Hammond in 2006, auctions sold $10 billion worth of U.S. real estate in 1980. By 1999, that number had risen to $49.5 billion.

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