On July 31, 2008 the Mobile Press-Register wrote an article about real estate auction activity taking place on the Alabama Gulf Coast.
http://www.al.com/business/press-register/index.ssf?/base/business/121715022486380.xml&coll=3
Sheldon Good & Company President Alan Kravets offers some pertinent commentary on this article:
Auctions are here to stay. They are not increasing in use just because of a down market. Auctions work well in a rising or falling market.
In a market like Baldwin County where supply exceeds demand and it’s acknowledged as a great place to own a residence on one of the best beaches in America, the auction provides the buyer with the opportunity to name their own price without negotiation. The Seller can use the auction as a call to buyers that they are ready and willing to sell – at San Carlos – at least 15 units.
The auction price will be the market for those units and will be accepted as such by appraisers and lenders.
According to the National Auctioneers Association 2007 report, the auction industry grew 5.3% to $270 billion dollars in 2007. This is a more than 30% increase since 2003. Real estate comprises 22% of the $270 billion industry with a whopping $59 billion in real estate sold at auction.
Please note that any time there is this volume of sales, there is a commercial and legal framework by which this is accomplished.
Alan Kravets is President and General Counsel of Sheldon Good & Company. He is a licensed real estate broker in 15 states.
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