$12 Million of NC Coastal Resort Property to be Auctioned in Raleigh

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The slowing market has left many builders and agents with a backlog of inventory.

$12 million dollars of North Carolina resort property is scheduled for public auction in Raleigh. The ballroom real estate auction event will be held at the Raleigh Marriott Crabtree Valley on Tuesday, June 27 starting at 6:30 p.m. Properties slated for auction include a single family home on exclusive Figure 8 Island, five new waterfront town homes on NorthWest Marina in New Bern, two deep water boat slips in Wilmington, five newly constructed duplex condos in Carolina Beach and several waterfront single family homes in beach communities north of Wilmington.

AuctionFirst.com is the local firm handling the sale. According to vice-president Sarah Sonke, real estate auctions have been on a steady rise in popularity throughout the country as a way of quickly transitioning real estate. "A few years ago most people associated auctions with the sale of celebrity homes or foreclosure situations," Sonke explains. "But now, thanks to eBay, auctions are now a hot trend in the real estate sector. "

Sonke predicts that within five years, real estate auctions may become as commonplace in the United States as they already are in Australia where the majority of homes are sold by the auction process.

One reason for the increase in real estate auctions is that the process is very seller-friendly. "For sellers, Sonke explains, "the benefits of an auction sale include selling the property as-is with no expensive repairs plus getting a purchase agreement that is a cash sale that closes in 30 days." Many properties that would normally sit on the market for weeks or months can be sold and closed in less than 90 days. Another benefit to sellers is that the buyer pays the company's commission and most costs associated with the ownership transfer. In auctioning the properties - except in the case of "absolute auctions" - a confidential minimum price is set that needs to be reached in order for the property to be sold.

Many of the properties up for auction with AuctionFirst come from developers and as referrals from local real estate agents. The slowing market has left many builders and agents with a backlog of inventory. "Many of these projects were ideas born during a much stronger speculative market that has now cooled," explains Sonke. "An auction creates a sense of urgency surrounding the sale that brings all interested buyers to the surface in a very short timeframe." AuctionFirst works closely not just with developers, but also with real estate agents and pays both listing and buyer agents a commission on the sale. "An auction gives agents another tool in their belt to help get the job done - what we call the Auction Option. It's especially useful for sellers who are highly motivated and realistic about the value of their property," says Sonke. David Hartman is a believer. His family recently relocated from Durham to Baltimore for a job change. "I'm a licensed real estate Broker in North Carolina and knew that it would probably take at least eight months to sell my home because of its location on a busy road. AuctionFirst.com sold my house in less than three weeks for 10% more than I anticipated." Hartman appreciated being in complete control of the process which included knowing his exact closing date in advance so he could coordinate the purchase of another home.

Sonke reports that interest in the upcoming Raleigh auction of resort properties is strong with inquiries coming from as far away as California.

"Buyers from out of the area and even out of the country can bid online in real time while listening to the live auction. That convenience makes it easy for anyone to participate." Purchasing expensive resort real estate sight unseen is unusual but according to Sonke it happens in the auction business. "An oceanfront home in Nags Head recently sold for well over a million dollars and was purchased by an investor in Tennessee who never saw it. He relied on a local real estate agent to help him feel comfortable about the condition of the property and then bid for it over the telephone. Everyone was happy with the outcome." Auction buyers begin their decision process by downloading detailed bid packages on each property from the company's web site. This will include as much information on the property as is available and includes the terms and conditions of the auction sale as well as a sample of the auction purchase agreement. Scheduled preview times are also included and prospective buyers are encouraged to visit the properties with their inspector or contractor in tow and comb through every

nook and cranny.

AuctionFirst.com is a national auction company specializing in the sale of real estate. The company has offices in North Carolina, Texas, Virginia and Maryland. For more information visit http://www.auctionfirst.com/
http://www.AuctionFirst.com or call 800-220-6760.

Published by ASMarketingCenter.com a division of http://www.auctionservices.com and the http://www.nationalauctionlist.com.

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