As seen in the Kansas City Star
It has been said that the only exercise some people get is jumping to conclusions. By some widely publicized measures, the real estate market continues to improve, pointing sellers, buyers and agents to a variety of conclusions. According to the Kansas City Regional Association of REALTORS® “Market Report” for March, combined home sales in the nine county region were up 8% over March 2012 with the average sales price 5.7% higher. The supply of homes was down to 5.3 months (from 7.2), representing a “balanced” market.
Factoring in anecdotes of “competing offers” and boasts of speedy sales, it could be easy for home sellers and even their REALTORS® to conclude that selling and buying properties through auction will be on the decline. Jeff Cates, president of Cates Auction & Realty Co., Inc. says it’s not only wrong to jump to that conclusion, it’s dangerous. “In the last 71 years we’ve seen every conceivable market condition and our busiest times are always when the real estate market is at its strongest,” he said. He cautions that “valuing a property in an improving market is tough. Sellers who overlook the auction strategy risk inadvertently underpricing which may result in a fast sale but leave money on the table. Conversely, sellers (or their agents), eager to capitalize on the improving market risk overpricing and thwarting the sale.”
Chad Bender, a licensed agent with Cates who specializes in consulting with traditional REALTORS® hears it frequently as he works with brokerages throughout Kansas City. “In every sales meeting I attend around the city I hear agents talking about that property that sold quickly or had competing offers. In reality, that’s what an auction offers every time – but intentionally and not by chance.” He adds that regardless of market conditions, buyers are drawn to auctions because they know that auction sellers are realistic and ready to sell.
A glance through Cates upcoming auction calendar underscores the point with a variety of properties scheduled for sale. This week alone the company is selling an unusual log cabin commercial building on Highway 50, commercial development lots in Blue Springs and Lone Jack, a town home in Gladstone and a single family home in Overland Park.
The June auction calendar kicks off with what Cates describes as “a spectacular executive estate” which includes a 5,000 square foot custom home and a 2,900 square foot shop/barn on 68 acres. According to Cates, “The striking five-bedroom home takes full advantage of the private and picturesque setting with hilltop views, an inground pool, two ponds and lots of wildlife on the property.”
As with many auction sellers, the property owner is downsizing and will also be selling very nice personal property including fine furniture, antiques and collectibles. Auction was a perfect solution for this seller, according to Cates, because she wanted a simple and efficient process to sell her home, acreage and contents. To ensure the widest possible participation in the auction the company is offering simultaneous online bidding on the real estate and much of the personal property, allowing bidders the option of bidding live on site or live online.
The property, which is located at 1785 E. 700 Road, Lawrence, Kansas, will be open for public viewings this Sunday, May 26th from 2:00pm to 4:00pm. Details of the real estate and catalogs of the personal property are available at www.CatesAuction.com along with photo galleries, documents and more.
This is just one example of how Cates sees the real estate auction market heating up as the general market improves. Sellers interested in taking advantage of current market conditions are encouraged to call 816-781-1134 or email Sold@CatesAuction.com to request a free auction property analysis. Likewise, buyers wanting to move quickly as prices continue to rise are invited to join the Cates email list, Facebook page, Twitter feed or YouTube channel to stay current on the weekly addition of new auction properties.
According to the National Association of REALTORS®, 94% of REALTORS® participating in the March Confidence Index expect constant or growing prices in the next 12 months. In Cates’ opinion, sellers who overlook the auction strategy as the market continues to improve are not only jumping to the wrong conclusion, but they are getting another kind of exercise: pushing their luck!