If anyone had told me five years ago that selling a home through an auction would become big business, I would never have believed them. Today, with plummeting house prices and developers with a glut of excess inventory sellers are looking for alternative ways to market their homes. As a result, the real estate auction market increased 5.3% in 2007, generating $58.4 billion in sales.

It seems that the more house sales decrease, the busier auctions get. Buyers feel as though their getting a deal and sellers are happy to unload their homes quickly and for good prices. In the normal housing market, buyers are hesitant, and reluctant to commit. An auction creates a sense of urgency that facilitates a "buy now or lose out" type of selling atmosphere.

Even developers have been turning to auctions as their choice of marketing. It gives them the ability to unload more lots in a shorter amount of time then by selling them individually through model homes.

Auctioneer Marty Higgenbotham claims "auctions give buyers confidence that they are paying a fair price". Recently, he sold 188 of his 200 new homes in a Minneapolis auction. His goal was to get 60% of the asking price, but the end result was closer to 55% to 57%.

Sellers love the convenience of a quick sale, as opposed to agonizing over months of constant open houses and showings. Arkansas home owner Mark Bratton recently sold his lake home for $25,000 more than the minimum bid. He was happy; all that was required was two weekends of showings and the house sold.

The process could not be simpler; a winning bidder must have a certified check or cash of $10,000 to $20,000 for a nonrefundable down payment. Most sales are generally completed in less than 60 days.

Sellers pay about 1% to 2% of the sales price to the auctioneer, and some charge a fee if an auction does not result in a sale. They also determine ahead of time whether the sale will be absolute (property is sold no matter what price is offered), or reserve, which gives the seller the right to decline a bid.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

California Home Equity Sales Contract Act - A Mine Field for the Unprepared!
When I first got started in the real estate investing business in 2006, the avalanche of foreclosures was just beginning. Before attempting my first short sale here in Southern California, I discovered I needed to comply with Civil Code Section 1695 by using a very particular type of purchase and ... more...

The Coachella Valley Housing Market
The figures relating to declining home sales in the Coachella Valley as summer begins and temperatures rise do not look good. But as with all things, even poor figures in a strong housing market make for headlines, but have little affect on reality. Here are the latest figures. First, the Statewide ... more...

Fixing How Real Estate is Sold - The Time for Change is Now
The government has confirmed that which nearly everyone in the country already knew ? the median price for homes has fallen all over the country. That's not news for the countless number of home sellers who are facing severe crises due to the length of market time. When the fallout of this market ... more...

Third Quarter Real Estate Market Report
Third Quarter Market Report Challenges, Opportunities, and Surprises, Oh My! Someone named Anonymous once said, "Many an opportunity is lost because a man is out looking for four-leaf clovers." That quote seems to sum up the real estate market - buyers seem to be looking for some sort of incredible ... more...