Quick Takeaways

  • Real estate auctions are often seen as a result of foreclosures, but many real estate auctions arise from a seller wanting to expedite the transaction.
  • Auctions allow a seller to eliminate long-term carry costs for the seller and allow the buyer to purchase properties at the fair market value.
  • Many real estate auctions have moved to online platforms, rather than the traditional property auction.

Real estate auctions often experience 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, accelerate method to sell a property. Auction allows the seller to eliminate virtually all long-term carrying costs, passing the savings directly to the purchaser in the form of a reduced price. The result is a win-win situation: sellers obtain immediate cash and buyers purchase properties at fair market value, the price determined by open, competitive bidding.

NAR can help you understand the basics and benefits of a real estate auction, learn more about the current auction market, and connect you with eduction and resources for auction professionals and REALTORS® working with auction transactions.

See References for more information.

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