Real Estate

Rich Wasser has been a real estate broker for over 30 years. He was doing real estate auctions 30 years ago when most people had never heard of the process. The auction process is the best way to sell anything, especially real estate. The terms are set, i.e., time of escrow, deposit amount, financing options (if any), etc. The auction is marketed through web sites, multiple listings, newspapers, direct mail, etc. The buyers are gathered and they bid on price alone. The auction is most commonly done with owner approval of high bid. When it is accepted, the documents and deposit are put into escrow.

Why is it the most fair option for buyer and seller? The buyer has a fair, open chance to outbid all other potential buyers. The seller will get the highest price from competitive bidding.

We had an auction of a very nice home in Los Angeles at the top of the real estate market. When I asked the seller how much she would take for the house, she said she would like to get 1.1. million dollars. While marketing the auction, we received several offers, the best being 1.2 million dollars. The seller asked me if she should take it. I told her that since we had already marketed the auction, let’s take a chance and see what happens. We had the auction; over one hundred people attended. The highest bid was 1.8 million dollars at the end of spirited bidding. The person who was high bidder at the auction was the same person who had offered the 1.2 million dollars before the auction.