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.
Taganale absolute auction
- Thread starter tsutcli
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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:
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.
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.smiling joe said:
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?
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.
Those in favor raise your hand.