Investors United : : Ask Ian Blog

If I sold a house through an auction, would the final sales price be comparable to what I would get if I used a Real Estate agent? I’m assuming that the auction service is reputable – such as the service provided by your father’s company, Auction Brokers. (Watson H., MD)

Typically, people sell real estate by: 1) hiring an agent, 2) hiring an auctioneer, or 3) selling the property themselves. But more important than who sells the property, is how the property will be marketed best. The key to selling anything is to make the public aware of the opportunity, and there are few better ways of causing a stir than public auction.

I used the auction method of marketing to liquidate a property on Roland Avenue, a high-income neighborhood in Baltimore. The neighbors went berzerk, “We don’t have AUCTIONS in THIS neighborhood.” I was featured in the local newspaper along with some silly remarks from the local real estate brokerage, but I really didn’t care. Why were they so upset?

The neighbors were opposed to the real estate auction because, like many people, they thought that auctions were only for more…