Wes Mazurek writes a monthly column for the Kalamazoo Gazette regarding real estate auctions. This article is an expanded version of the May, 2001 column.

Q. What is the advantage of selling through the Auction Method as compared to the Conventional Method?

A. Both methods have their advantages. The conventional method is what sellers are most familiar and comfortable with. Sellers list their home, place it on the MLS (multiple listing service) and wait for it to sell. I'm not sure there is a strategy in place if doesn't sell. They will probably re-list for another six months and continue the wait. Waiting does not improve the likelihood that a home will sell soon. Sellers need to question" Why isn't my home selling and what can I do to recover lost opportunities?"

Sellers have the concern that if they select the auction method they will have to accept less for their home. But the question remains "Less than what"? Remember that the home is not selling now! If sellers reduce their asking price in an effort to entice a new set of buyers the commission is still their responsibility, so what is gained? With the Auction Method sellers can reduce their asking price and either share the commission responsibility with the buyer or select the Buyer's Premium Method. The Buyer's Premium Method allows the buyer to pay the commission. The auction method allows many options that the conventional method does not.

Granted the Auction Method is not for everyone. For the Auction Method to work sellers must be motivated to sell and be in a positive equity position. With the Auction Method, we can tell a seller when their home is going to sell and on what day. Every auction generates two back-up bidders. In other words, there are three potential buyers at every sale. The primary bidder (buyer) and two back-up buyers. The conventional method typically does not have this luxury. The Auction Method successfully draws attention to unsold properties. This is supported by the extensive advertising package that is developed and employed. It is not uncommon to receive offers before auction day. With this comprehensive marketing plan sellers are assured that buyers receive the message. Our auction services are made available to all sellers and REALTORSÒ wanting to utilize this exciting marketing tool.

Email to Wes@DreamHomeAuctions.com