The National Auctioneers Association has recently related that over $16 billion worth of residential real estate was sent last year in auction, more then 12.5% from 2005. These types of auctions are not going to be done with the typical foreclosure/distressed properties, as we have seen in the past, no instead they are doing this to create more of a drive from potential buyers. Mind you, these auctions are not for the wishful thinkers: serious buyers only are their motto.

What do sellers get out of this? For one, they get a quick sale if they need to get rid of a property ASAP (as these listings can be sold anywhere from around 9 to 12 minutes.), second there are certain contingencies to make sure something comes through for them. As a safety measure, sellers can create a minimum bid, where their property cannot be sold under a certain value. Also, as for the buyers, they have to agree to a no contingency contract, and have their financing/depositing ready in case they win the property at auction. If they are unable to come through with all of the money, they lose their initial deposit. Now what is the appeal for the buyers?  They get to pay a fair price according to the market conditions and they have time to research the properties before auction.

People feel that this method of selling will only increase as we become more ust to online bidding, buying, or selling: think of the company we already use for this, EBay, once thought of as an oddity, now it is a common occurrence, just like a trip to your local grocery store.