Orlando Real Estate Auctions Here To Stay

Like them or not, Real Estate Auctions will be around for sometime.  According to the National Association of Realtors, one out of three real estate sales will be marketed through Auction in 2010.  Whether you are a buyer, seller or broker knowing the auction process and benefits will be crucial to you over the next several years. This is a brief overview of auctions. I will get into the nitty gritty of auction types and the feedback and success we have seen with them in another blog.

Auctions sometimes referred to as “accelerated marketing strategy” are slowly dropping the stigma of tools suited only for distressed properties and foreclosures.  Owners of all property types are utilizing auctions as a method of obtaining a quick sale to a qualified buyer at a realistic ‘today’ price.  For a seller the benefit of replacing contracted negotiations with competitive bidding should be obvious. Several fortune 100 companies, builders, developers and even Donald Trump have utilized auctions to move excess inventory in today’s market.

For a buyer auctions can also be very favorable. In a declining or stagnant market thousands of buyers are sitting on the sidelines worried that if they buy today the property will be worth less tomorrow. It makes it difficult to evaluate what a property is actually worth. At an auction a buyer will have the chance to stand shoulder to shoulder with there peers, and decide what the property is worth, this restores confidence that you didn’t over pay.

We at Stirling Sotheby’s International Realty have been at the forefront of real estate auctions in central Florida.  For more information upcoming auctions that we are hosting or to find out how you can utilize our auction team to get your listings sold, feel free to contact me.

John Kurtz: 407-581-7890.

  • Some of the upcoming auctions we have are:
  • Metropolitan Condos Red Bank, NJ
  • Metro Orlando Home Builders Association inventory Close out
  • Sportsman’s Club
  • Florida east coast waterfront properties

3 Comments

  1. The only auctions I’ve seen recently in the Orlando area have been the REDC and the Hudson&Marshall REO auctions. Tradewinds Condos, Orlando World Resort, and Valencia Forest Condos all had recent “marketing event” auctions…but they weren’t successful. The owner’s set reserve prices were still higher than what the bidders were willing to pay so few units got sold. HINT to developers: If you’re running an auction, make it an absolute auction….yes, your units may only fetch $20K at auction but if that’s the best anyone is willing to pay, you’ll know the actual current market price of your units.

  2. Craigg, there were even more flops than that. How about Conway Crest, Villa Valencia, WorldQuest… REDC are the only ones doing business because it’s all they do… and of course they’re REAL good at faking it!

  3. Without question there have been several auctions conducted by various firms that haven’t worked as well as the sellers had hoped, of the above mentioned the only one I was involved with and can comment on was Conway Crest. It was unfortunate, we did actually bring several good offers to the seller both at auction and in post auction marketing however the lein holders got in the way of closings. I do believe had the offers we were able to bring to conway been allowed to close the developement would be in a better position today. Our next Florida auction will contain absolute sales. The Irony here is that advertising a auction as absolute generates more interest, brings more bidders and often results in higher sale prices than reserve auctions. I do beleive going forward as developers and banks cope with the reality of this market, you will see more and more auctions that do better than many of the 2008 auctions across Florida.

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