Real Estate Auctions - the hottest trend in Real Estate

The growing popularity of real estate auctions means that a once-specialized method of sale is now 

available to sellers of all types of real estate. No longer are auctions used only for distressed 

properties or farmland, for example. Thanks in large part to the explosive growth of online auction sites 

for merchandise, consumers have embraced the live and online auction concept for real estate, too.

Real estate auctions provide substantial benefits over a traditional, negotiated sale. Auctions are the 

most efficient way of setting price to the market as opposed to a continuum of constantly reducing the 

asking price until a buyer buys.

Here are some general guidelines for determining which properties will perform best in the auction 

marketplace.

      High demand properties include:

- Residences of virtually all kinds, including single family homes, condos, and townhouses. 

- Investment and income-generating properties such as apartment buildings and motels.

- Bank-owned real estate (REO) in which the lender has possession of the property due to foreclosure. 

- Lender-authorized short sales. A short sale is a transaction in which the lender agrees to have the 

property sold for less than what is currently owed by the mortgage