Property Auctions

So is an auction an auction if nothing is sold?

Highbidder, you were so eager to pump the auction, then after the auction, you were soliciting feedback from people on this board who did not attend before you were willing to tell us the results. Did you ever tell us the results?

I strongly question a few of your statements, but I have beat this dead horse enough to let it rest.

Joe,

I'm tired of beating the same old issue myself, but feel compelled to be sure that the auction profession in general and our firm's services in particular are properly represented.

I solicited feedback from everyone, hoping in particular that you & Cork attended. I was disappointed that none of you introduced yourself to me at the auction. Maybe on my next trip to SoWal we'll debate some of this together over a cool one.

Our sellers did not accept any of the bid prices generated that day, yet most would stll have realized a significant profit based on their original purchase price and still substantial appreciation in value. They were still determined to get last year's prices. This is what I meant by motivated sellers. If you love your property more than the financial gain, that's okay. If your personal situation dictates a conversion to cash or simply to reinvest somewhere else, we'll bring you the best dollar and do so in a very short period of time. I expect the next auction in your area to have more realistic and therefore properly motivated sellers. Once this adjustment occurs, values will once again begin to rise. Whether we like it or not, it's part of the nature of a free market economy.

In contrast to the current market situation, we often bring higher than anticipated (or listing) values for very desireable properties in the appropriate market conditions. It's all part of the cycle.

I now believe Shelly and High Bidder to be the same person. Shelly setting people up with doom and gloom and HB swooping in to feed on the carrion.

I now believe Shelly and High Bidder to be the same person. Shelly setting people up with doom and gloom and HB swooping in to feed on the carrion.

When I read HB's "honorable mention" on the proceeding page's thread I just knew this would be brought up (and even correctly guessed who would be the bringer-upper :cool: ). [Damn I'm Good!]

I'm flattered that you think I am single-handedly responsible for the current real estate "deflation" along the entire panhandle of Florida and that I had the wherewithal to engineer a plot to crush the market--beginning with my initial post on this board way back in June 2005 and culminating with massive auctions that would send prices tumbling to near zero! 😀

And for my next trick....World Peace!

Now Shelly, you know that you were responsible for none of Highbidder's auctioned properties being sold -- stop denying it. :funn:

Another poster and I have been exchanging some data on sales, prices, etc.. The thing that stands out so much is that, on avg, the properties which are selling are still increasing in value over time. Few are selling, but as Highbidder says, some sellers really like their property. Even though they could come off the price and still make good money, most are sitting tight, which really reduces the inventory of properties for which buyers are currently willing to fork over the dough. (note to Highbidder and the other people who occasionally misquote me -- this does not = robust sales)

When I read HB's "honorable mention" on the proceeding page's thread I just knew this would be brought up (and even correctly guessed who would be the bringer-upper :cool: ). [Damn I'm Good!]

I'm flattered that you think I am single-handedly responsible for the current real estate "deflation" along the entire panhandle of Florida and that I had the wherewithal to engineer a plot to crush the market--beginning with my initial post on this board way back in June 2005 and culminating with massive auctions that would send prices tumbling to near zero! 😀

And for my next trick....World Peace!

Could you please pick the winning lottery numbers for me first?

I'm flattered that you think I am single-handedly responsible for the current real estate "deflation" along the entire panhandle of Florida and that I had the wherewithal to engineer a plot to crush the market--beginning with my initial post on this board way back in June 2005 and culminating with massive auctions that would send prices tumbling to near zero! 😀

And for my next trick....World Peace!

Whether you are right or wrong, you are only single-handedly responsible for being a jerk. One out of ten of your posts don't smell like rotten eggs.

Cork, et al.,

Our "pressure" as you like to dwell on so, doesn't involve anything more than you advising your buyers that they "...may not want to miss this opportunity. Better get in now. At the rate property values are escalating you may not have this opportunity again." .

High, there are many salespeople that do pressure buyers and sellers. Regarding any pressure that I might exert when I advise my clients, I'll let one of my clients words speak. Her email is available if you'd like to confirm it and she'd be happy to speak with you:

" The one thing that sets her apart from other realtors is that she will tell you what she thinks is in your best interest rather than saying anything you want to hear to get a commission. Debbie encouraged us to look at our financial situation and the slower resale market and decide what would be best for us if they did not buy it. She stood to lose a commission of over $31,000 if we walked away, but she encouraged us to do what was in our best interest. Any realtor can list your house in the MLS, very few will put your needs above their own greed."

Please don't speak of what I would do because you don't know. This client is the same client that was advised in 2004 to pay over asking price of $799K if she wanted a particular home. She didn't listen and the home sold over asking and was flipped for $1.2 million a few months later. Sometimes advising clients of such is appropriate and not pressure.

If you had been at our auction Saturday March 4th you would have been able to see us conduct our auction, and therefore able to speak more knowledgably. .

Had I been in town, I would have been there but I did send 3 different realtors who reported to me. To allege that I don't speak knowledgeably impugnes my reputation and is unwarranted. It's fine to disagree with someone but to assault them isn't fairplay. Do you disagree with the statement that pressured sales aren't qualifying sales? I didn't say that your sales are pressured, your website does.

Translation: It's a buyers market..

I don't think there's one person who disputes this on the board. I personally have said it many times so you're not telling us anything that we don't know. It's your gross exaggerations and predictions of bubbles bursting that came out only after you were unable to perfect a sale which are misleading.

The auction process is not the problem here, but part of the solution. ..

I believe it's been said that I have no problem with the process. It's the irreverence associated with it and the glib way that such an important transaction is approached. The language on the site is appalling IMO and I'm suprised that NAR allows it. I feel that it undermines the credibility of the profession. The reduction of current inventory is the solution and auctions are no more a part of it than any real estate sale.

Purchases 3-5 years ago should be in decent shape and should not need to sell if they bought on an FRM or can afford the ARM payment as it increases or adjusts from interest only to P&I. IMO, anyone who bought in the last 2-3 years had better be able to hold their property for a while if they don't want to take a hit. ..

This statement is incorrect. A home bought 2 years ago in South Walton is today worth about 175% more than it was 2 years ago. These people are in little danger of taking "a hit" as you say. Those who bought 3 years ago are well over 200% on average. The data is available elsewhere on the board.

This allows us to keep our finger on the pulse of the R/E industry nationwide.

You may have a better feel for the overall market in the US but there are too many factors to extrapolate generalizations across the country into any one market.

I'm sure that we are all genuinely interested in the auctions that you or any other company holds and welcome open and honest information regarding them. As I said in the past, I would bring clients to them but I feel compelled to fully understand the total costs and consequences of the contract and advise them of such. Under these circumstances we can all play nice together.

To all,

My initial motivation in posting to this board was to clarify a variety of misconceptions regarding the auction process, and to correct any direct mistatements posted by members of this board (of which there were a few). I believe that has been accomplished to the extent we all understand each other a little better now, however further debate at this point in time is not in anyone's best interest.

It was never my intent to defame or villify anyone, and so to you Debbie, I respectfully apologize. Though we may differ in opinion, I'm sure that both of our philosophical and procedural positions have merit.

BTW, We've only discussed your area from a standpoint of values and overall market adjustments, but I do want to say one thing. I'm a native Floridian, but have never spent much time around the bend in your area. It is incredibly beautiful up there and I admire your fierce loyalty. You folks live in, and are fortunate enough to enjoy, one incredible part of this state.

If anyone should have any further questions I can be reached directly via email, or by telephone as noted in earlier posts.

Take care,

High, there are many salespeople that do pressure buyers and sellers. Regarding any pressure that I might exert when I advise my clients, I'll let one of my clients words speak. Her email is available if you'd like to confirm it and she'd be happy to speak with you:

" The one thing that sets her apart from other realtors is that she will tell you what she thinks is in your best interest rather than saying anything you want to hear to get a commission. Debbie encouraged us to look at our financial situation and the slower resale market and decide what would be best for us if they did not buy it. She stood to lose a commission of over $31,000 if we walked away, but she encouraged us to do what was in our best interest. Any realtor can list your house in the MLS, very few will put your needs above their own greed."

Please don't speak of what I would do because you don't know. This client is the same client that was advised in 2004 to pay over asking price of $799K if she wanted a particular home. She didn't listen and the home sold over asking and was flipped for $1.2 million a few months later. Sometimes advising clients of such is appropriate and not pressure.



Had I been in town, I would have been there but I did send 3 different realtors who reported to me. To allege that I don't speak knowledgeably impugnes my reputation and is unwarranted. It's fine to disagree with someone but to assault them isn't fairplay. Do you disagree with the statement that pressured sales aren't qualifying sales? I didn't say that your sales are pressured, your website does.


I don't think there's one person who disputes this on the board. I personally have said it many times so you're not telling us anything that we don't know. It's your gross exaggerations and predictions of bubbles bursting that came out only after you were unable to perfect a sale which are misleading.



I believe it's been said that I have no problem with the process. It's the irreverence associated with it and the glib way that such an important transaction is approached. The language on the site is appalling IMO and I'm suprised that NAR allows it. I feel that it undermines the credibility of the profession. The reduction of current inventory is the solution and auctions are no more a part of it than any real estate sale.



This statement is incorrect. A home bought 2 years ago in South Walton is today worth about 175% more than it was 2 years ago. These people are in little danger of taking "a hit" as you say. Those who bought 3 years ago are well over 200% on average. The data is available elsewhere on the board.



You may have a better feel for the overall market in the US but there are too many factors to extrapolate generalizations across the country into any one market.

I'm sure that we are all genuinely interested in the auctions that you or any other company holds and welcome open and honest information regarding them. As I said in the past, I would bring clients to them but I feel compelled to fully understand the total costs and consequences of the contract and advise them of such. Under these circumstances we can all play nice together.

I do not know Cork but want to say that I find reading her posts to be informative and enlightening. She does not shy away from directly addressing any question or issue that one may have about the statements she makes and will go to great lengths to explain to those of us who are not realtors the myriad of issues they have to deal with in a clear, concise and straightforward manner and for that I am, for one, extremely grateful. In addition she seems genuinely interested in representing her clients and advising them well (at least that is how most of her posts read to me!)

After living here for over 2 years and being somewhat involved in the business of real estate I have come to realize many people just plainly resent the fact that the past years have obviously been quite lucrative to realtors. As simple and dumb as that. When choosing to sell a property whether it be by auction or posting with an agent or FSBO, etc... seller should stay informed, ask for realistic current "market" value from qualified knowledgeable realtors and pick their course of action consequently.

Another poster and I have been exchanging some data on sales, prices, etc.. The thing that stands out so much is that, on avg, the properties which are selling are still increasing in value over time. Few are selling, but as Highbidder says, some sellers really like their property.

Joe,
What's your take on a market where there are fewer homes selling but the median price is increasing.

The way that I see it is that a very large chunk of buyers are out of the market. That "buyers chunk" is made up of four types of people:

(1) People looking for affordable housing
(2) Middle-class folks priced out of the market
(3) Investulators
(4) Low- to middle-priced condo buyers

That means it takes only a few sales of the very upper-end, high-cost properties to sell (raising the median price) and the over-priced middle-to-lower end properties are sitting, and sitting, and sitting (inventories rising).

The folks who "don't intend" to sell their properties are putting them out there, and can afford to continue to pay carrying costs, but I bet they're more than a bit disappointed that they're not selling and would much rather have them out of their portfolio. My guess is that when they come to the reality that carry costs are eating away at what could be profits and the investment is no longer "making (on paper that is) double-digit returns," they'll want to move these babies along and price them to move. (Which would be good news for realtors and the folks who service them.)

What do you see happening over the next several months that will send mobs back into the street snapping up all the excess properties at/above current listing price as in days of yore? You strike me as a pragmatic kind of guy--I'm guessing you know that isn't going to happen.

To all,

My initial motivation in posting to this board was to clarify a variety of misconceptions regarding the auction process, and to correct any direct mistatements posted by members of this board (of which there were a few). I believe that has been accomplished to the extent we all understand each other a little better now, however further debate at this point in time is not in anyone's best interest.

High,

Even though you are me (I've really got to see a doctor about that sometime :blink: ), I'd like to thank you for taking time and effort answering questions.

I'm in the process of writing my thesis about the affect the real estate boom has had on area economies--thank you for sharing your frontline experience of the auction process, it was very interesting and informative.

High,

Even though you are me (I've really got to see a doctor about that sometime :blink: ), I'd like to thank you for taking time and effort answering questions.

I'm in the process of writing my thesis about the affect the real estate boom has had on area economies--thank you for sharing your frontline experience of the auction process, it was very interesting and informative.

Before you write your thesis, look up effect/affect. :lol:

What do you see happening over the next several months that will send mobs back into the street snapping up all the excess properties at/above current listing price as in days of yore? You strike me as a pragmatic kind of guy--I'm guessing you know that isn't going to happen.

I don't see "mobs" of people getting back in the market. As you mentioned, price alone has weeded out many would-be buyers otherwise. People buying into the market, will be people who can afford property, and people who are buying for the future (not 1 yr into the future, but 3+ years.) One other group will be people looking to hold a cup up to the bleeder's necks, and there will be some bleeders who shouldn't have bought to begin with. It is this last group who had better be quick and already have the numbers in front of them so they recognize bleeding when they see it.

Just my quick .02.;-)

Edit: While writing on another post, I remembered something that I stated long ago on this board. That is, with construction supplies increasing more than two times in the last year and a half, it would be very difficult for the price of new construction homes to decrease much, if at all, in this area. This should also help keep the prices of custom builds increasing. With more foreseen raises in supplies in the near future, I don't think you will see most newly built homes in this area selling for less than they did a year ago, unless the builder bought the lot so long ago that he can afford to sell for less.

Before you write your thesis, look up effect/affect. :lol:

Will do...thanks for reading 😀 (Maybe I can blame that on my HighBidder personality?)

When and where is it Franny? :popcorn:

Sorry about that Cork. Have been busy doing other things, like work! 😱 I always check the Walton Sun for auction ads. I did not make it to the one this past Saturday. The auction(s) were located at the actual properties and really wanted to attend the one in Navarre. Large home on the sound and it was an absolute. May call the company and see if they will tell me how it did on Sat. That's about it.