Sunday, May 4, 2014

How To Get Your License To Auction Real Estate In Florida

     If you have a Florida real estate license, you have a license to buy,appraise,rent,sale,auction, lease or exchange real estate.  Was auction on that list?  Yes. it was.  If you have a Florida real estate license, you have all the license you need to auction real estate.  You do not need any other license to auction real estate.  You can auction a house or forty acres of land or a lot or any real estate .  If anyone tries to convince you otherwise, refer them to the horse's mouth, the DBPR .  

    If you are a Realtor and you want to auction a house, you have all the license you need to auction that house.  Do you have the skill and expertise to auction that house?  That is another question.  A Florida real estate license is all you need to auction a house in Florida.  

     If this is true, why don't you auction a house or two?  I think you should.  Talk to a seller and ask him to let you auction his house.  Ask the seller to give you a thousand dollars up front to advertise the auction.  Get about four of these cooking at the same time.  Auction one house at 10 A.M. Auction one at noon.  Auction one at 2 P.M.  Auction one at 4 P.M. Do it on a Saturday.  Do it in the front yard of the house.  How much skill does it take to say,"Will you bid $50,000?".  

     There are some wonderful things about soliciting listings to auction.  

     One thing is it is a great way to get started with the seller.  Ask the seller if he has ever considered an auction.  He asks you how that works.  You make an appointment to explain it to him.  When you explain it, it sounds too spooky for Mr. Seller.  That is OK.  Let's just do a regular listing and put it in MLS.  What a great way to get listings.  

     Another wonderful thing about soliciting houses to auction is they don't have to go to auction.  Lets say you list a house to auction.  You set the auction date ninety days in the future.  Meanwhile, you put the house in the MLS with a price that the seller will accept.  A fellow Realtor calls with an offer that is acceptable  to the seller.  Put that one under contract and cancel that auction.  Darn!  If the seller has given you a thousand dollars up front and you have not spent it advertising, give it back to him.  

     Another wonderful thing about soliciting houses to auction is you find out how motivated a seller really is.  Only a motivated seller will give you a thousand up front.  

     There are two ways to auction property.  There is absolute and there is a reserve.  Absolute means if the high bid is one dollar, the seller is bound to accept it.  At an absolute auction, we know the seller is motivated .  A reserve means the seller agrees he will not accept less than a certain price.  Even with a reserve, you will usually get to contract if the seller has any motivation at all. 

     We auctioned a house once that was worth about sixty thousand dollars.  The seller had inherited the house.  Mom had died eighteen months ago.  The house was empty.  The owner (heir) lived a thousand miles from Orlando.  We had a reserve of $59,000 from the seller.  We had eighteen people standing in the front yard.  We had a mortgage guy with a card table qualifying bidders before we would give them a number (permission to bid).  The high bid was $54,000.  We called the seller and gave him the facts.  The facts were there were eighteen buyers standing in his front yard and they were in unanimous agreement that his house was not worth more than $54,000.  He refused to take the $54,000 bid but he agreed to $56,000.  The buyer agreed and we went to closing.  I had seventeen qualified buying prospects to work with.  

     If you are a Realtor, you have a license to auction real estate.  It is a great way to get listings and make money.

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