Residential Real Estate Auctions

March was a month that took many real estate professionals by surprise. According to Austin Kilgore with Housing Wire, national housing sales rose 6.8% over February’s sales. The New York Times reported that the Western Region of the country did exceptionally well as sales rose 17%. Standard & Poor’s Case-Shiller Home Price Indices came out this week and showed that the overall home prices were up in the month of February.However, a report in Agent Genius Magazine says, “Where it gets mixed up is that despite this being the first time since 2006 that the annual rates of change for both [the 10-city and 20-city] composites are positive, more than half of the cities in the larger composite experienced price declines.”

Real estate professionals are speculating this recent uptick in sales is greatly due in part to the federal home buyer tax credit that expires at the end of April 2010. Prospective home buyers are moving off the sidelines to cash in on the low interest rates and potential $8,000-$6,500 tax incentive ending soon. However, Alan Ziebler reports “doubts remain about whether the momentum will be sustained in the second half of the year when federal support is gone.”

States such as California, are initiating their own home buyer’s tax credit in an attempt to maintain the momentum of residential real estate sales. According to the California Franchise Tax Board, “These tax credits are limited to the lesser of 5 percent of the purchase price or $10,000 for a qualified principal residence.” Though this incentive can provide eligible home buyers more than the federal tax credit, the California state tax credit will not last forever and is scheduled to end on August 1, 2011.

Obviously, there is a short window where buyers can capitalize on some real estate deals that probably won’t present themselves for several decades to come. Interest rates are at record lows and tax credits are offering those in a financial pinch a lot of help. The real estate market is overstocked with a supply of REO’s and short sales just waiting to get off the bank’s books. With so many factors piling up in the buyer’s favor, what else would it take to get more buyers to move forward with purchasing in the market?

Will the market continue its gradual stablization or will the real estate market take a double-dip once the government stops offering incentives? What are some of your market thoughts and speculations?

In this third post of our series on Using Online Auctions, I will discuss why online real estate auctions are a superior marketing tactic compared to traditional outcry auctions. The LFC Group of Companies is in a unique position to address this topic, having spent the majority of the last 30 years auction residential real estate, commercial property and land through an outcry format. However, after recognizing the shifting trend in commerce, LFC left outcry auctions behind to begin auctioning property exclusively online in 2004.

Here are a few reason why the outcry auction format falls short and why online auctions are the new industry standard:

• The Internet has a global reach, yielding the broadest possible market exposure.
• Bidders never need to leave home or work to attend the auction.
• Online auctions offer a fair and transparent process.
• All documentation can be downloaded electronically.
• LFC’s online auctions typically run 30-45 days, allowing all interested bidders to take their time and make an informed decision before placing a bid.
• Using the Internet as an open information source allows bidders to decide a property’s true real estate value for themselves.
• People are increasingly comfortable making purchases online.
• And best of all, no auctioneers are yelling and pressuring you as deliberate on one of the biggest financial decisions of your life.

Previous Posts in the Using Online Auction Series:

• Minimum Bids, Reserve Auctions, & Absolute Auctions
• Using Online Auctions: Busting the Auction Myth

Every time the LFC Group of Companies begins an online auction, I’ll write a blog post describing the city and region for that specific property. This requires some extensive research, which is often helped by the increasingly common social media presence of many towns across the country, both big and small. Towns like Spartanburg, South Carolina, Bemidji, Minnesota, and Paso Robles, California are doing a fantastic job utilizing social media to connect with local residents and visitors, and of course, simultaneously aiding real estate professionals like myself (a much appreciated unintended consequence!).

Take a look at the quality of material, the consistency in appearance across all of their accounts, and, most importantly, their engagement with followers/fans/viewers.

• Spartanburg, SC: Facebook Twitter YouTube Flickr
• Bemidji, MN: Facebook Twitter
• Paso Robles, CA: Facebook Twitter YouTube Delicious Flickr

Resources such as the chamber of commerce, visitor’s bureau or a city’s home page can be a huge help to better understanding all of our auction locations from a local’s perspective.

What are some of the ways your city is participating in social media? What do you like/dislike and why?Related Posts

• Coming Soon: Online Auction in Spartanburg, South Carolina
• Land Auction in Bemidji, MN: Bank-Owned Resort Development
• REO Auction for Land Parcels in Central California

Yesterday, April 1st, was the Bid Deadline for the online auction of a luxury home in Peoria, Arizona. However, the property’s seller has invoked LFC’s patented LAST CALL® process in order to extended the Bid Deadline until Monday, April 5th. The auction’s current high bid is now published and every bid hereafter will be displayed in real time. If another bid IS taken before Monday’s deadline, the auction will be extended until Tuesday. These twenty-four hour extensions will continue until no more bids are placed.

I recently explained the LAST CALL® bidding process (which is currently running) in the online auction for commercial property in Orland, California and in that post, I wrote about the LAST CALL® bidding in another one of our commercial real estate auctions in Columbus, Ohio. In short, LAST CALL® was created to prevent people from losing an auction due to someone placing a bid in the final seconds before the deadline. Here is how I explained LAST CALL® in previous posts:

LAST CALL® protects bidders from auction sniping. If you are familiar with other online auctions sites such as eBay, you know that everyone interested in the auction waits until the very last second to place their bid. There is even software that will automatically enter a bid in the last millisecond of the auction, what we call “auction sniping.” LAST CALL® protects bidders by eliminating the possibility of “sniping.” Real estate is a rather large investment to make online and we strive to give all bidders a fair chance at winning. Understanding that real estate is a rather [heavily strategized move] to make online, we made the LAST CALL® extension increment 24 hours to give bidders plenty of time to deliberate.

I invite you to follow this auction closely as bidders compete for the property. You can join in the conversation and stay informed about this online auction by following us on Twitter. If you have any questions pertaining to LAST CALL® or this auction, feel free to leave a comment.

Happy Friday and good luck bidders!

Related Posts

• Coming Soon: Online Auction for a Luxury Home in Peoria, AZ
• Another LFC Property Moved to Online Bidding!
• Prescott Arizona Land For Sale
• Prescott Arizona Golf Course Property
• Prescott Arizona Land For Sale

It’s Easter Sunday on April 4th, and I just wanted to let everyone know that no open houses will be held for our luxury home auctions in San Clemente, Calif. or Peoria, Ari. this Sunday. However, both of the luxury homes we are auctioning in Dana Point, Calif. WILL BE OPEN on Easter Sunday.

If you want to know the remaining open house dates and directions for any of our luxury home auctions, all of the viewing schedules are posted on each auction’s property profile pages. Please see the following open house directory for more details:

• The Strand at Headlands: 15 Whitewater, Dana Point, California 92629
• The Strand at Headlands: 49 Beach View, Dana Point, California 92629
• The Ledges at Sonoran Mountain Ranch: 28545 North 68th Avenue, Peoria, Arizona 85383
• Overlooking the San Clement Golf Course: 431 Avenida Crespi, San Clemente, California 92672

Related Posts

• Developer of Ocean Front Estate in the Strand Turns to Online Auction to Deliver a Buyer
• Coming Soon: Online Auction of a Luxury Home in Peoria, AZ
• Online Auction of a Luxury Home on the San Clemente Golf Course

Open Houses will be held Saturday, March 20th from 1:00 PM – 4:00 PM & on Sunday, March 21 from 1:00 PM – 4:00 PM at the following locations. Please click on the images for more details about these online auctions.

• The Strand at Headlands: 15 Whitewater, Dana Point, California 92629
• The Strand at Headlands: 49 Beach View, Dana Point, California 92629

• Sonoran Mountain Ranch: 28545 North 68th Avenue, Peoria, Arizona 85383

• 431 Avenida Crespi, San Clemente, California 92672

Related Posts

• Developer of Ocean Front Estate in the Strand Turns to Online Auction to Deliver a Buyer
• Coming Soon: Online Auction of a Luxury Home in Peoria, AZ
• Online Auction of a Luxury Home on the San Clemente Golf Course

The LFC Group of Companies is auctioning a Tuscan-inspired luxury home perched on top of the San Clemente Golf Course overlooking the Pacific Ocean on our residential auction website, FRE.com. The minimum bid of $1.295 million for this extravagant home is a full million dollars less than the previous asking price, attracting some serious buyer interest. With three bedrooms, a versatile fourth room capable of serving as either a bedroom or office, and three and a half bathrooms, this home is expertly designed to deliver true Tuscany ambiance while showcasing the serene views of this unique and highly sought after “SoCal” location.

For those of you unfamiliar with southern Orange County, San Clemente is a quiet beach town well known for its laid back surf culture and 1,296-foot long pier. San Clemente boasts two world-famous surf spots, Trestles and T-Street, that double as popular beach hangouts year round. If land sports are more for you, here’s a little snippet about the San Clemente Municipal Golf Course that describes its sprawling 18 hole course against a ocean backdrop:

The San Clemente Golf Club is a scenic, family friendly Championship 18 hole golf course where Fridays are still weekdays, walkers are still welcome and juniors are always ¬? price. Owned and operated by the City of San Clemente, the course is located approximately one mile from the Pacific Ocean and features ocean views from a number of holes. Named “Best Value in Orange County” in 2008, the rolling hills and relaxed atmosphere of the “Muni” have remained popular with local golfers for over seventy five years.

Traveling to and from San Clemente is easy and convenient, easing the burden of a daily commute. The San Diego Freeway runs parallel to San Clemente, making freeway access a breeze, and there is also an Amtrak train station in town for those looking for a more scenic, relaxing route to travel up and down California’s coast.

The Bid Deadline for this property is April 15th, 2010. If you are looking to capitalize on a spectacular opportunity in this buyer’s market, I encourage you to come visit the online auction at FRE.com for all of the property details and documentation.

Photo Credit: typicalmacuser @Flickr.com

A beautiful home in The Ledges at Sonoran Mountain Ranch, a new master planned community in the thriving Phoenix suburb of Peoria, Arizona, will soon be featured in a MUST SELL® auction on FRE.com. The auction starts this Wednesday, February 24th, 2010 until it reaches the Bid Deadline on April 1st, 2010.

This luxury home was built by Camelot Homes, a renowned Arizona developer, and consists of more than 3,000 square feet, 4 bedrooms and 2.5 baths. Of course, the backyard has a gorgeous pool to help you escape the Arizona heat. However, there are plenty of highlights inthe city of Peoria that are worth checking out before the auction starts:

• CNN Money ranked Peoria as one of the top 100 best cities to live in 2008
• One of Peoria’s biggest attractions is the Peoria Sports Complex which hosts the spring training for the San Diego Padres and Seattle Mariner’s baseball teams.
• Cool off from the summer heat at one of Arizona’s most popular lakes, Pleasant Lake
• There are dozens of golf courses to choose from in and around the greater Peoria area

Touch base with us at our online auction site, FRE.com, this Wednesday to see the auction and to view the full viewing schedule.

Photo by redfive99 @ Flickr.com

The LFC Group of Companies, the industry leaders in the online auction marketing of real estate, is proud announce their latest auction campaign on the company’s residential auction website FRE.com: a luxurious oceanfront estate in Dana Point’s The Strand at Headlands, southern California’s last and most exclusive beachfront community. The developer of Vista al Mar, an exquisite Santa Barbara-style custom beach home once priced at over $15 million, has set an opening bid of just $7.5 million.

If you would like to continue reading this story about our newest online auction, click here. Or, you can visit the online auction webpage at FRE.com.

In this next post in our Using Online Auctions series, I’ll dispel a common myth that real estate auctions are only suited for distressed properties. In fact, online auctions are perfectly suited for sellers with brand new properties. As you’ll see, online auctions are increasingly seen as an alternative marketing strategy, not a last resort option.

Sellers elect to auction properties and forgo a traditional real estate sale primarily because of one over-arching reason: auctions accelerate sales. Below are several characteristics of the online auction that ensure velocity of sale.

• The Bid Deadline
  • The Bid Deadline creates a sense of urgency for prospective buyers, getting all those fence-sitters in the game.
  • The Bid Deadline also lets everyone know that there is a certain date of sale.
• Focus Market Attention
  • LFC’s online auction campaigns feature aggressive marketing campaigns that grab buyer attention
• Global Reach
  • Online auctions have a global reach.
  • Bidders can perform all their due diligence and submit bids from anywhere in the world. Bidders no longer have to show up at a ballroom for a live, outcry auction.

Do you agree with these benefits of an online auction? Do you think using a conventional real estate sale is better? We would love to hear from you so please send us your comments.

The next post in our Using Online Auction Series will compare outcry auctions with online auctions.