The Seven Major Sources For Real Estate Auction Listings
Nowadays, it is commonplace that few real estate agents have the requisite knowledge of the perfect sources to find real estate auctions listings. This makes it imperative to know how and where to find properties which are to be sold at real estate auctions as it is the key to making money and crucial to your success as a real estate auctioneer. Additionally, it makes this business less competitive and an excellent business opportunity.
Currently, there are numerous sources available for finding the real estate auction listings. Below are seven ideal auction sources which a real estate auctioneer should know in Canada and United States.
1. Craigslist and Kijiji
Kijiji is an excellent real estate auction listings source and it is equivalent to the Craigslist website in the United States. The advantage of Kijiji is that you can click reply and send an email in regards to auction services simultaneously as you are viewing the ads directly to the email inbox of the one who posted the ad.
It is advisable to create many different email replies in the word format before searching Kijiji. This saves you time when replying to the ads since you will simply copy and paste the necessary message into the body of the emails in accordance to the type of the ad you are replying to.
For instance, you can create separate customized messages for replying to: landlords, real estate agents and For-sale-by-owners.
The local newspapers, real estate column are laden with numerous potential estate auctions listings. All one is required to do is to go through them. As part of the weekly prospective routine, you should earnestly find the real estate ads which are classified on a daily basis. This increases your chances of finding auction listing in other newspaper headings such as “investment properties” or “commercial properties”.
You ought to make a daily or at least a weekly glimpse at the estate auctions listings in the local newspaper. This will enable you to track the ads that have been posted for many weeks and enable you identify the property owner, since they are motivated and interested in an auction, an accelerated selling option.
When scanning with your eyes, identify the keywords and signs which identify potential auction listings. Below are some of the keywords and the signs to look for.
- Must sell
- Estate sale
- Motivated seller
- Death notice
- Lost job
- Owner financing
- Sale due to health
- Sale due to illness
- 100 percent financing
- Death notice
- Price reduced
- No money down
3. Real estate brokers and agents
For some properties listed on the MLS, traditional sale method might fail, while auction method is likely to succeed. However, real estate agents require the cooperation of the real estate auctioneer in order to make a sale.
Most of the property information packets have special fields and remarks which indicate whether the property has been listed as a foreclosure or short sale. In order to prospect for MLS listings suitable for auction, just scan the property listing and check for keywords like” corporate owned”, “ bank owned or REO, since this indicate that the listing is a foreclosure. Where there is an approval needed from a third party, it means that there is a likelihood it is short-sale listing.
When you find the potential auction listing, you need to contact the listing agent and offer to work with them as a broker’s agent. There is this ill-conceived notion of some real estate agents that working with real estate auctioneer as their broker’s agent will snatch their commission. Nothing can be further from the truth, since listing agent keeps their commission minus the co-broker fee, which they normally pay to the selling broker regardless.
4. Banks and lenders
The bank REOs and foreclosures constitute an excellent source of property auction since their main objective is to get rid of the properties as quickly as they can.
Majority of the lenders and banks list their properties with the local real estate agent. The auctioneers can either solicit or liaise with the real estate agents who will handle the sale or call the lenders or the banks directly for the available foreclosure on hand.
The auctioneers should liaise with a person who is in charge of the REO department of the lender or bank. The in-charge has the power to approve or disapprove any offers that you make to list property for sale by auction.
5. Lawyers and accountants
Foreclosure is an excellent source of auction property listings. However, it is important to be aware that most of these foreclosures are due to divorce, death or bankruptcy. The owners of these properties seek advice concerning this matter to professional like lawyers.
Tax regarding bankruptcy, foreclosure or any other financial calamity tends to be complicated. Inevitably, majority of these property owners turns to their accountants for expert tax guidance.
Networking and connecting with the accountants and lawyers who deal with estate divorce and bankruptcy matters forms an excellent source of quality referrals of the potentially motivated sellers.
To determine the accountant and lawyers in these specialists, just check in the yellow pages of the local telephone book or simply do a Google search. These avenues will land you to many potential lawyers and accountants you can contact. You can email them a letter together with your business card which introduces you and your auction services.
6. Properties in foreclosure
The city hall office and the RM offices offer outstanding sources of free information to the real estate auctioneers. Though foreclosure laws tends to vary between provinces, properties headed for foreclosure have a notice of default recorded in the city hall office and searching through these public records is free of charge.
It is also a requirement of the law to have banks publish all pending foreclosures. It is very easy to find those notices in the local newspaper.it are also advisable to check for public notices of tax liens and obituaries. The estate agents normally include the real estate that should be liquidated. The tax lien notices are given oftentimes to properties which are delinquent on property taxes and schedules to be sold through tax auction.
It is your right to contact the owners of the property before the property is foreclosed on. Ways of reaching them include direct phone calls, email, mails and personal visits.
7. Foreclosure information website
Currently, there are a numerous dominant foreclosure information websites which specializes in the collection and listing preforeclosure information. However, the websites provide an executive summary of the property.
For you to get detailed information on the properties in preforeclosure, you need to register as a member. This is a paid service and you need to do extensive due diligence to find the information valuable to your auction business.
The above seven avenues offers an incredible source of information on auction listings necessary to keep you occupied, informed and make your career as a real estate auctioneer profitable and rewarding.