TWO NEW STUDIES SUPPORT USE OF REAL ESTATE AUCTIONS
OVERLAND PARK, Kan., Feb. 11 /PRNewswire/ -- What do a grand Newport, R.I., mansion, a Victorian house in the Tampa, Fla., area and a ski resort in West Virginia all have in common? They have all been sold, or will shortly be sold, at auction. Everywhere you turn today, it seems as if you see another real estate auction advertisement. Property owners who learned the value of auctions during a weak real estate market are seeing the benefits of this unique marketing method in strong markets. Two recent studies of real estate auctions, released jointly by Massachusetts Institute of Technology's Center for Real Estate and the Federal Reserve Bank of Boston, show the valuable role real estate auctions play in both down and robust real estate markets. Auctions are a winning proposition for both property owners and buyers. Because of the reduced holding costs for property, an auction sale price below appraised value saves money for property owners. Conversely, buyers are able in many cases to purchase property at a discount. Some properties sell at or above their appraised value at auction. Although buyers did not receive the discount they were anticipating, they are only paying one bid more than what someone else was willing to pay. National Auctioneers Association (NAA) President Eddie Haynes of Oklahoma City appreciates the recognition the auction method of marketing has been receiving. "This study is just one more piece of evidence to support the expanded use of auctions," Haynes said. "The auction industry has known for some time of the viability of auctions. It is reassuring to receive independent confirmation of the advantages of the auction method of marketing." Haynes also cited a recent National Association of Realtors' study that predicts 30 percent of all real estate may be sold at auction by the year 2000. Of course, auctions are in many cases the favored means of disposing personal property, also. Many high profile items are sold at auction because the focused attention of an auction brings higher prices. For example, a 1975 Lincoln Continental used by Elvis Presley and a Honda motorcycle owned by Jerry Lee Lewis were recently sold at auction in Renfro Valley, Ky. (For more information about this auction, contact Ford Brothers Inc. of Mt. Vernon, Ky., at 606-256-4545.) Haynes said the reason the auction method is becoming more popular is the growing professionalism of auctioneers. With knowledge gained through seminars and convention workshops sponsored by NAA, auctioneers are improving the services they offer to their clients. The 1993 NAA Winter Seminar is in Atlanta, Feb. 15-17 at the Marriott at Lenox. -0- 2/11/93 /EDITOR'S NOTE: Media contacts for the real estate auctions mentioned in the first paragraph are: West Virginia ski resort, Scott King, 800-662-5464; Tampa-area Victorian home, Don Rice, 813-644-6681; Newport mansion, Monica Elefterion, 617-357-6464./ /CONTACT: John Walter, NAA director of Publications, 913-541-8084.
CO: National Auctioneers Association ST: Kansas IN: SU:
KJ-JB -- DV001 -- 5514 02/11/93 08:20 EST
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|Date:||Feb 11, 1993|
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