Auctioneer Talks About Florida Real Estate Sales
A few sellers may be having trouble finding Florida home loan takers, but others are turning to auctioneers such as Dan Mahaney for help in today’s market.
Mahaney is an operating partner and broker for Luxury Auction Group, the company that runs u-auction.com, in which people can bid on houses for sale in a way they would bid for things on eBay. He estimates he got three calls from residents last year. Now, he’s getting at least 15 calls a week from people desperate to sell their Florida real estate.
“Fort Myers is really picking up,” Mahaney said, as is the rest of the state.
Some auctions actually take place on the property for sale, while others are over the phone or Internet. A house in Grandezza in Estero is being sold by fax auction, meaning the seller will open sealed bids and accept one, most likely the highest one, within 48 hours.
“It’s an accelerated way of selling real estate,” Mahaney said. “As you see the market slow, people are forced to go for quicker results.”
Mahaney said a house sold at auction generates “fair market value,” meaning that public interest in a property determines its price, instead of how much the seller wants for it.
More information on auctions, finding Florida home loans
Mahaney said auctions allow sellers to unload property quickly. Sales close 30 days after the auction ends, with cash in the seller’s hands. Because of the rapid turnaround, Mahaney said auctions are popular with investors and builders trying to unload inventory and free up some extra funds. They’re also good for a homeowner who needs to sell a house quickly after moving, so he isn’t paying two Florida home loans.
Because the emphasis is on speed, sellers can’t wait around until they get an offer that matches the number they’re asking for. However, some properties do create bidding wars, particularly for highly desired waterfront and trophy properties.
Mahaney said most people think of housing auctions as selling foreclosed homes, but said luxury homes sell particularly well at auction. “You can really use it on any type of property,” he said.
While business has picked up in Florida since the housing market has cooled down, Mahaney said homes sell even better during real estate heat waves because the fervor spreads to bidders who are anxious to agree to terms on a Florida home mortgage loan.
“The auction method actually works better in a fast appreciating market,” he said.
In addition to lots of interest from Southwest Florida home sellers, he’s gotten a lot of calls from people in the Tampa Bay area as well as the Panhandle and Miami. He said he expects to double the number of Florida home loans auctioned soon.
