A uction B — September 28 - October 11, 2012 — Fall Preview — Mid Atlantic Real Estate Journal
www.marejournal.com
By Robert Dann, Max Spann Real Estate & Auction Co. Auctions create a sense of urgency
the market for months and in some cases, even years. While some sel l - e r s h a v e the time to wait, more often than not , today W
e ’ v e a l l k n ow about properties that have been on
Real estate auctions are an ideal solution for sellers who need to sell property quickly at a fair market price. If auc- tions are properly marketed, they have the potential to attract large crowds of poten- tial bidders, creating a “stock market,” where true values can be determined. Auctions create a sense of urgency in the marketplace. Since an auction is set for a certain date, bidders know they have to act, otherwise they’ll be left on the side- lines. Auctions don’t allow for
procrastination. Knowing the auction deadline is looming, interested buyers will imme- diately focus on the property that is being auctioned. I have seen this time and time again. As executive vice president and chief opera- tions officer for Max Spann Real Estate & Auction Co., one of the leading auction houses in the nation, I have seen the power of auctions to create a buzz in the market and drive traffic to properties that languished for months.
The Wildwoods on the Jersey Shore is a good case study. Prior to the collapse of the vacation home market in 2008, the three communities that make up theWildwoods –Wildwood, Wildwood Crest and NorthWildwood – saw a large increase in the number of condominium units on the market, either from new construction or conversion of existing hotels. In one of our first auctions in North Wildwood, we at- tractedmore than 3,000 peo- ple to open houses during
our aggressive marketing campaign that lasted five weeks. Many of the visitors were not actively looking to purchase in the Wildwoods, but were drawn to the open houses out of a sense of cu- riosity created by the mar- keting campaign. Visitors came from Stone Harbor, Ocean City Cape May and as far as Canada who were attracted to the low open- ing bids and the prospect of owning beachfront property at a fraction of the original listing price. Even buyers who were not in the mar- ket for a condominium in Wildwood, including some who believed they could not afford it, came to the auction to bid. In less than an hour, we sold all 40 of the condomini- ums to people from Virginia to New York. In our post auction marketing inter- views, we found that that only 8 of the 40 buyers were actively looking for a condo- minium in the Wildwoods. Our marketing campaign more than quadrupled the size of the market by selling opportunity. Other sellers took notice and engaged our services. In the second quarter of 2010, we accounted for more than half of all the sales of condominium units in the Wildwoods. Not only did we knock down economic bar- riers, we raised consumer confidence in that market. Auctions work for all types of properties, whether it’s a 55,000 s/f commercial building in Cherry Hill or vacant land that is ready for a subdivision. In an uncertain market, bidders like the idea of being able to name their own price for a particular property. Sellers like the idea of being able to move multiple units quickly, efficiently and profitably, all within a single day. Robert Dann is execu- tive vice president and chief operations officer for Max Spann Real Es- tate &Auction Co., which has offices in New York and New Jersey, and president of the New Jersey State Society of Auctioneers . n
Robert Dann
they want a quick resolu- tion, especially if the prop- erty is struggling to attract buyers.
340 Clove Rd, Montague, Sussex County, NJ 07827 Auction Date: Thursday, October 4th 2012 Time: 11 AM • 173+/- Acre Land, Lots & Development Potential • 3 Excellent Real Estate Opportunities (1 of 3) • Bulk Bid! Bank Owned, Bank Ordered Sale • 34 Already Improved Lots
2 Walnut Street, Summit, Union County, NJ 07901 Auction Date: Thursday, October 4th 2012 Time: 11 AM • 6,462+/- Sq. Ft. Commercial Building In the Heart of Summit, NJ • By Order of the City of Summit Downtown Summit!
975 N. Main Rd. Vineland, Cumberland County, NJ 08360 Auction Date: Thursday, October 4th 2012 Time: 11 AM • 2,285+/- Sq. ft building on Major Signalized Intersection • Former Bank Branch on Signalized Intersection ABSOLUTE AUCTION! To be sold regardless of price!
Philadelphia 41 Residential Rental Properties Auction Date: Wednesday, October 10th 2012 Time: 1 PM • ABSOLUTE AUCTIONS 20 of the 41 properties to be sold Regardless of Price! Absolute!
Musconetcong River Estate 391 Bloomsbury Road, Bloomsbury, NJ 08804 Auction Date: Saturday, November 3rd 2012 Time: 11 AM • 249+/- Feet Musconetcong River frontage • Majestic Country Living at its Finest To Be Sold Regardless of Price! • Previously Asking $899,000
1200 River Rd, Titusville (Hopewell Twp) Mercer County, NJ 08560 Auction Date: Saturday, November 3rd 2012 Time: 2 PM • 1739 Grist Mill and Stone House Homestead • Additional New Post & Beam Home • 8.1+/- Acres, Plus 2 Lots along Jacobs Creek
• 35 out of 41 Currently Leased! • Attention Real Estate Investors: 41 Philadelphia Opportunities
Max Spann Real Estate & Auction Co. 888-299-1438 www.maxspann.com P.O. Box 4992, Clinton, NJ 08809 • 1325 Rt 31 South, Annandale, NJ 08801 • 370 Lexington Ave, 12th Fl, New York, NY 10017
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