Taganale absolute auction

Now I understand that this is no longer to be an Absolute Auction.

I could almost guarantee you the auctioneer is extremely upset. The property owner probably became frightened and changed to a reserve. This should not matter if one is interested in bidding, more than likely the reserve is low but you never know.:idontno:

I could almost guarantee you the auctioneer is extremely upset. The property owner probably became frightened and changed to a reserve. This should not matter if one is interested in bidding, more than likely the reserve is low but you never know.:idontno:

Do you know if we can do that without penalty? That may not be a bad financial move for someone who wants to get their property advertised extensively. Hurts the Auction Professional, but in the words of Santiago "it's called business"

It won't stop the advertising from drawing interest b/c it has already been advertised as Absolute Auction. I do think it hurts the auction profession to advertise as one thing, only to have the seller change their mind last minute.

Poppy, you are making a tremendous assumption that the reserve is low. Rarely, is the reserve low on these types of properties, especially if they are heavily leveraged.

Rarely, is the reserve low on these types of properties, especially if they are heavily leveraged.

I can't speak for National Auction Group, but that is your opinion and one that is not based on fact concerning the auction industry. At Roebuck, we actually turn down about 85% of the people who come to us to auction their property because either their expectations are unrealistic or they are over leveraged. Just like traditional real estate agents, we only get paid if the property sells. I have no interest in wasting my time or my seller's time if I do not honestly think we can get the property sold.

Could you please share your opinion on the benefits of having a absolute auction vrs. a reserve auction.Why would anyone not submit a reserve price for their property?Will be selling a commercial piece at auction soon with a small payoff pending and would like know the pros and cons of each.

Roebuck, you are correct. It is my opinion that you won't find a low reserve on most of the heavily-leveraged properties. I am just shooting from the hip, since I see so many properties which receive bids at auctions, but do not end in a closing. My guess is that the reserve wasn't set low. Since I am not in the auction business, perhaps you can share the factual data to prove me wrong, or to defend my opinion.

Could you please share your opinion on the benefits of having a absolute auction vrs. a reserve auction.Why would anyone not submit a reserve price for their property?Will be selling a commercial piece at auction soon with a small payoff pending and would like know the pros and cons of each.

The biggest benefit of an absolute auction is the interest and size of the crowd that will be at the auction if:
1. The property is desirable. The better the property, the more interest you will have and the more willing people will be to come bid.
2. It is properly and aggressively marketed. If the auction company you use does not get the word out about the auction, it is probably not going to go as well as you would like.
Bidders like absolute auctions because they know the property will sell. They don't feel like their wasting their time. This is why people would choose to sell their property at absolute auction. They want any potential bidders to know that they have fully committed to selling. In all the years I have been doing auctions, a well marketed absolute auction for a desirable property has always been a successful sale.

The biggest con of an absolute auction is obviously that there is a level of risk involved. You can eliminate most of this risk by doing the following:
1. Try to take a look at the property you are selling through the eyes of a buyer and be realistic with yourself about you would be willing to pay for it today in this market. Don't think about what you could have sold it for in 2004 or some other factor that has nothing to do with what it is worth right now. If the price you come up with is less than what you want or need, then you should rethink your decision to auction it.
2. Don't be afraid to question the company conducting your auction about where and how they intend to market your property. See what properties like yours they have been successful at selling. Bottom line is make sure that they are getting the word out properly.

The only other thing I will add is that the decision to sell at absolute auction has to be your decision. Do not let someone try to pressure you into an absolute auction. I would never tell someone to consider absolute if I didn't feel 100% certain it was in their best interest. I always do what you asked me to do in this post. I give the pros and cons and let the seller decide if it is right.

Roebuck, you are correct. It is my opinion that you won't find a low reserve on most of the heavily-leveraged properties. I am just shooting from the hip, since I see so many properties which receive bids at auctions, but do not end in a closing. My guess is that the reserve wasn't set low. Since I am not in the auction business, perhaps you can share the factual data to prove me wrong, or to defend my opinion.

Smiling Joe, I have no problem with you having an opinion about the auction profession either positive or negative as long as you state that it is your opinion. My problem with your earlier statement was that you posted it as if it was a fact.

Smiling Joe, I have no problem with you having an opinion about the auction profession either positive or negative as long as you state that it is your opinion. My problem with your earlier statement was that you posted it as if it was a fact.

Thanks for letting me clarify that it is my professional opinion, and not based in data. Now, perhaps you can provide the data to prove me wrong or prove me correct. I haven't heard you say that it isn't so. You took a detour in that response.

So, I hear that the auction for these two units were canceled due to there being only a couple of registered bidders, even though they spent $60,000 + in advertising for the auction. I guess with these auctions, you need more than one bidder per unit to make them work, hence the pulling of the "Absolute" part of the auction. Could you imagine showing up to bid and no one else showing up?

I do think there are buyers out there for this property at the right price. I am wondering if some of these auctions being changed last minute and pulled last minute, have a direct impact on bidders not showing up. Why would anyone want to waste their time flying down here for an afternoon, if there is a good chance that the property won't sell anyway?

I know that all sellers are not equal, nor are all auction companies. I don't mean to imply that Roebuck Auction doesn't do a good job, so my apologies to Roebuck Auction if my words sounded like darts. I know that www.RoebuckAuctions.com has some properties being auctioned tomorrow and Saturday, and wish them luck. I just want to see some sales, period.

So, I hear that the auction for these two units were canceled due to there being only a couple of registered bidders, even though they spent $60,000 + in advertising for the auction. I guess with these auctions, you need more than one bidder per unit to make them work, hence the pulling of the "Absolute" part of the auction. Could you imagine showing up to bid and no one else showing up?

The listing I saw said all three units were for sale, not just two. Does anyone know if the auction was held, and if so, what was the selling price?? They've certainly been on the market a long time. I'm guessing if the owners/builder (Billy & Suzanne Tagg) cxld, they had to pay a cancellation fee to cover the agent's costs.

Thanks for letting me clarify that it is my professional opinion, and not based in data. Now, perhaps you can provide the data to prove me wrong or prove me correct. I haven't heard you say that it isn't so. You took a detour in that response.

Don't you love waiting for facts? I'd like to see some finality to the open question for you. Will you give us your closing statement Roebuck Auction so we can deliberate?

The advertising was a little misleading. All three units were for sale but only one was Absolute (from ads you would have thought all were). At the last minute they changed it so none were Absolute(probably why only two bidders showed). I heard that there were bids of 400,000 and 700,000 ( same unit/different units - who knows) and the auction was cancelled.

Click on the detailed floor plan and there is a PDF of the blueprints that show a Master bedroom and 2 guest rooms. The other two bedrooms are labeled as "Media Room" and "Study." This is obviously what they submitted to planning. The floorplan on the web page shows 4 bedrooms and a Media room. As I look at it, there are no closets shown in the "Media Room" and "Library/Study" so technically they do not qualify as bedrooms. Anyone know if closets were added after the C.O. was issued?

I don't know if closets have been added or not, but I do remember being at the public hearings for this project. There was a ton of opposition from neighbors, who felt the "media room" and "study" was just a scam. The feeling was that the site was too small to begin with and if the developer put in what would have been the required parking for five bedroom units that the square footage and/or the number of units would have to be cut down. Someone with some patience could find the minutes, but if I remember correctly it passed after much discussion because it technically met the code. Like so many other projects..........:bang:

I can't speak for National Auction Group, but that is your opinion and one that is not based on fact concerning the auction industry. ...

Well, since they didn't go through with the auction, there are three more factual statistics to add to my opinion. Still waiting to see your data showing otherwise.

Well, since they didn't go through with the auction, there are three more factual statistics to add to my opinion. Still waiting to see your data showing otherwise.

Smiling Joe, I?m still confused by what you call facts. What were the reserve prices for Tagganale? If you know what they are and know that they were too high, please post them. Just because a property does not sell at auction does not mean that the reserve price was too high. If every property that has ever been up for auction was successfully sold, everyone would be in the auction business and traditional real estate would be history.

Now I?m sorry I haven?t responded to your request sooner, the auctions this past weekend took a priority in my schedule. But I now see based on your last post that nothing I say will satisfy your seemingly anti-auction opinions. You and I both also know there is not a published statistic that covers the entire auction industry with regards to reserve prices. I can only speak about my own company and what I can say is that in our company history, we are at about a 90%+ success rate. There are some auction companies I know that do have a low success rate and that may be due more to the auction companies not knowing this market well, or they may have not adequately prepared the sellers for what they should expect. I have seen a few instances where the auction company was sold by the seller on why their property was worth more than other comparable properties. At Roebuck, we try to be as brutally honest as we can with our sellers.

Another fact I can give you is that real estate auctions are the fastest growing segment of the industry. In 1994, the auction industry as a whole accounted for about $9 Billion. This year we are projected to hit $280 Billion. This is phenomenal growth that has caught the attention of the National Association of Realtors. Last year, the president of NAR asked the president of the National Auctioneers Association to serve on their Board of Directors. There is even an auction section on the NAR website now and MLS systems all across the country are working to incorporate auctions. Auctions are not just a new fad. They have been around longer than most other sales methods and have grown in popularity for real estate as more and more sellers look for a faster alternative.

I haven't brought up success rate of auctions in this thread, and that isn't what you objected to in my previous post. As I said, you changed the subject. Your original reply to my opinion really had nothing to do with anything about the number of properties which sell at auction. You pointed out my specific quote, where I replied to Poppy, who stated that the reserve would likely be low for these Taganale properties:

Rarely, is the reserve low on these types of properties

So, I am not sure why your success rate applies to reserves on highly-leveraged properties which do not sell at auction. These days, highly-leveraged property at auction, likely means that the seller owes more than the property is worth, and the lenders aren't likely to allow the reserve to be low, because they must have some built-in protection. I doubt you disagree with that, so I really don't know what it matters if my opinion is simply opinion, based on observation and deductive reasoning, rather than statistical data which you point out, doesn't exist.

I don't recall saying that the reserves were "too high," but if I did, I'll share my definition of "Too high" is any amount which doesn't get an acceptable bid from a buyer. It may vary from property to property. From what I've seen, none of the Taganale units received acceptable bids.

You state that you have a success rate of 90%, turning away 85% of the people who approach you to auction their property. I haven't questioned that. I think that is great.
Again, I haven't asked you for success rate facts, only the data to refute or agree with my opinion of reserve prices not likely being low.

For the record, the auction real estate growth numbers (percentage) you report aren't very different than growth of my brokerage during that same 14 year period, nor do I think they would be very different than the real estate growth in general, though I haven't looked at stats on that, so it would be only my opinion based on some anecdotal samples.

Perhaps you will share the results from your auctions held on Friday and Saturday, on a new thread.

I haven't brought up success rate of auctions in this thread, and that isn't what you objected to in my previous post. As I said, you changed the subject. Your original reply to my opinion really had nothing to do with anything about the number of properties which sell at auction. You pointed out my specific quote, where I replied to Poppy, who stated that the reserve would likely be low for these Taganale properties:

So, I am not sure why your success rate applies to reserves on highly-leveraged properties which do not sell at auction. These days, highly-leveraged property at auction, likely means that the seller owes more than the property is worth, and the lenders aren't likely to allow the reserve to be low, because they must have some built-in protection. I doubt you disagree with that, so I really don't know what it matters if my opinion is simply opinion, based on observation and deductive reasoning, rather than statistical data which you point out, doesn't exist.

I don't recall saying that the reserves were "too high," but if I did, I'll share my definition of "Too high" is any amount which doesn't get an acceptable bid from a buyer. It may vary from property to property. From what I've seen, none of the Taganale units received acceptable bids.

You state that you have a success rate of 90%, turning away 85% of the people who approach you to auction their property. I haven't questioned that. I think that is great.
Again, I haven't asked you for success rate facts, only the data to refute or agree with my opinion of reserve prices not likely being low.

For the record, the auction real estate growth numbers (percentage) you report aren't very different than growth of my brokerage during that same 14 year period, nor do I think they would be very different than the real estate growth in general, though I haven't looked at stats on that, so it would be only my opinion based on some anecdotal samples.

Perhaps you will share the results from your auctions held on Friday and Saturday, on a new thread.

Didn't Roebuck say he turns down highly leveraged properties because of the small chance of a successful sale?:confused:

Yes, he did state that, but that is has nothing to do with him implying that my opinion regarding highly-leveraged auction properties not having low reserves. He stated that it was only my opinion and not fact-based, and that is true, but I asked him to show me the facts if what I wrote was incorrect. He cannot, because as he states, there are not stats for that which are published. I thought he went into his talk of Roebuck's success rate as a way to avoid proving my opinion incorrect.

I think this thread has run it's course.

Those in favor raise your hand.