U.S. home builders are taking advantage of the current buyer frenzy by holding home auctions to facilitate the acquisition of their properties. Seeing the success exhibited by these particular events, investors are left wondering why they can’t implement such a strategy for their flipped houses. What can investors learn from these home auctions to use for themselves?
Home builders from California to Florida are once again reveling at the massive surge of potential home buyers. Hopefuls are camping out for days and showing up by the thousands for a shot at bidding on new homes on prime lots.
Some builders have embraced the onslaught of potential buyers and decided to convert the entire process into a series of home auctions. To cut down on the mayhem, builders have decided to make the whole process a little more trendy and enjoyable, while driving up the prices of their homes. Still, as many as 80% of the attendees are walking away from these events empty handed. Of particular concern, however, are those coming up empty handed month after month as they continue go back for the launch of new phases. Each of these individuals represents a potential buyer going to waste.
This process is incredibly encouraging from a real estate investing perspective. It means the market is improving dramatically. It also highlights the difference between homes that have been rotting on the market for a year and those selling in hours, proper marketing techniques.
It also says a lot about the standards of competition, as the need to go above and beyond has never been more important. Creative marketing ideas are required to drive the sale of houses and earn top dollar for your investment.
Perhaps the most important takeaway here is considering the position of those left out of the process. Everyone who attends these home auctions is a potential lead for your business. Otherwise, you may be severely limiting your real estate wealth. How can you tap into this ultimately limitless pool?