According to Texas real estate license holder and licensed auctioneer Yi Meggie Mei, auctions are the preferred way to buy and sell real estate globally. In the auction process, the seller holds prospective buyers’ attention, controls the terms, gets competition between buyers, and can easily facilitate 1031 exchanges, while buyers avoid prolonged negotiation, know they’re getting a competitive price, and can bid and close from anywhere.

Moreover, the auction process can work in tandem with the traditional real estate transaction process, according to Mei. When working with sellers represented by a REALTOR®, the auction agreement becomes an amendment to the listing agreement, with the closing and other aspects of the transaction still being handled by the REALTOR®. “All the paperwork is going to be the same as usual,” Mei says. “It’s just the way we sell the property that’s different.”

The marketing for an auction also works alongside traditional real estate marketing plans. “The majority of a traditional marketing plan is localized,” Mei says. “On the auction side, we tend to expose the property to a larger audience, depending on what type of buyer we want to market to.” Auction marketing can be local, national, and global, according to Mei, utilizing a variety of tools to reach high net-worth individuals and investment groups through private databases and other means.

The auction process can be suitable for many property types, according to Mei, but ideal candidates may be high-demand listings, those with urgency to sell, real estate owned properties, or unique listings. And whereas the traditional transaction cycle could take 90 to 360 days, the auction cycle is typically between 60 to 90 days from the initial marketing plan to the auction date.

Learn more about the global appeal of auctions by watching the full webinar in the Global and Commercial playlist on the association’s YouTube channel.