Auctions are a small portion of the market, but I still…
…find it interesting that CB is looking to develop this option in Florida.
Please correct me if I’m wrong, but I heard auctions make up a large portion of the market in some countries (like Australia). My take is that the real benefit of an auction model is that in a down market an agents could pretty much guarantee a sale for owners who feel under the gun to sell.
Niki Scevak 6:47 am on March 13, 2008 Permalink |
Dustin, that’s right (nearly all sales in Australia are via auction). Also, there is next zero percent of cases where the agent is on the buy side. That is, there is only a sell side agent and the commissions are anywhere between 1.75%-2.5%
Dustin 12:59 pm on March 13, 2008 Permalink |
Interestingly, my wife has been dong a bunch of research into the Russian market recently and there are some similar numbers there. No auctions to speak of, but there are no buyer-side agents (to speak of) and the commissions hover around 2%.