Federal regulators are now puttingdous pressure on banks to dispose of bad loans and properties that they’ve held for an excessive length of time. “According to RealtyTrac Senior Vice President Rick Sharga, major banks currently hold roughly 1 million REOs …,” Real Estate Inside tremenr News reports. “Only 30 percent have actually made it onto the market … that means 70 percent of the homes the banks have already foreclosed on are sitting vacant. These homes are all expected to hit the market in the next few months.”

Enter the real estate auction: Banks are increasingly interested in this kind of transaction, particularly the definitive timing of the sale, which allows them to appease regulators who are scrutinizing all aspects of their REO portfolios.

According to PropertyAuction.com president Ori Klein, this seems to be happening across the board with all property types. “What we saw in the 2010 residential sector with banks unloading large portfolios of properties at real estate auctions is now also hitting the commercial sector,” Klein reports. In commercial real estate, holding costs on commercial properties for banks are at an all-time high. Taxes, maintenance and a general downturn in the marketplace are all factors contributing to the loss of equity that banks are experiencing in their REO portfolios every day.

The push to sell these properties has resulted in banks turning to auctioneers to assist with satisfying regulators. Land is on top of the list for auctions these days, along with vacant commercial buildings; functionally obsolete commercial structures seem to be hitting the auction block at an especially rapid pace. Owners and investors are turning to auctions while taking advantage of the incentives being offered by local governments and federal programs.

This summer’s market should be exceptionally interesting. As a previous report by NuWire Investor states, “The amount of REO inventory held by lenders is expected to peak in August 2011 at [approximately] 545,000 properties, according to analysts at Barclays Capital.” Consequently, auction companies and auctioneers are expecting to have a busy season.

Source: PropertyAuction.com (June 13, 2011)

“The owners want to get it sold, but they prefer a conventional listing. So we’re approaching it like an auction, with our full team involved,” said Jourdan. “I’ve found over the years that you don’t get results by waiting for people to come to you.”

Jourdan has seen it from both sides as an auction professional for more than a decade and a former employee of real estate giant CB Richard Ellis.

“The orientation for an auctioneer is to market a property aggressively, because you have a deadline by which you have to get results. But people who seek to sell their property through conventional listings want results too. So we approach the business with the same mindset that guides our auction campaigns — focused, concentrated marketing with an eye to results,” said Jourdan.

“This is a beautiful unit in the Tops’l Summit, overlooking a nature preserve, with a view of the Gulf. One of the bedrooms can be rented separately from the other two, providing more flexibility to the owner. Most of all, the owners want to get it sold,” said Jourdan.

The reputation and amenities of the Tops’l resort are a major selling point, said Jourdan. “For the prospective buyer, the amenities have an importance beyond the owner’s enjoyment when he is there. They also make it easier to rent the unit at attractive rates,” he said. The 52-acre Tops’l resort has top-rated tennis facilities, fitness facilities, pools and other amenities, he said.

Individuals interested in additional information about the property or about Coastal Auction Group may call 877-918-2777 or visit coastalauctiongroup.com. Coastal Auction Group, based in Miramar Beach, Fla., markets homes, vacation properties and other Florida real estate through auctions and conventional listings.

Four of the available tracts of land were being sold absolute, which greatly attributed to the success of the auction.  Despite the current market conditions buyers are still seeking sound investment opportunities and when a property is selling absolute, they are more willing to take the time to attend an auction and compete for the property.  Thanks to an intensive three-week marketing campaign, this property generated a great deal of interest and resulted in a successful sale.

Project Manager, Chris Camp, commented, “There is a misconception that auctions are typically associated with foreclosed or distressed properties, but in reality the clientele we work with are just property owners that are looking for an alternative to traditional real estate methods.  Auctions provide them with faster results, more interest in their property and competition between buyers that results in a higher selling price.”

Coastal Auction Group is a full service real estate auction marketing firm, headquartered in Miramar Beach, FL. For more information please contact Coastal Auction Group, 850.460-2777 or visit www.CoastalAuctionGroup.com.

Coastal Auction Group Helps Raise over $70,000 for Two Local Charities

Coastal Auction Group lent their talents to two local charities this past week. On Thursday, November 18, the Coastal auction team was on hand at a charity wine tasting and auction benefitting the Taylor Haugen Foundation. The packed event was held at the world famous Caliza Pool at Alys Beach, FL and featured hors d’oeuvres from several local restaurants each paired with a different wine. Live auction items included a dinner for 8 prepared in your home from Dominic Damiano of Fat Clemenza’s restaurant, signed sports memorabilia, wine and an autographed guitar from the All American Rejects who stopped by and presented the guitar in person.

Two days later on Saturday, November 20, Coastal Auction Group took over the Catwalk at Community Walton’s Catwalk 211 fundraiser. 2-1-1 is an easy to remember telephone number connecting people with important community services. The implementation of 2-1-1, managed through local United Way agencies, connects local social service and information referral agencies to people in need. The first year event drew an impressive crowd to the ballroom at the Embassy Suites in Miramar Beach, FL. The organizers put together an impressive list of auction items that included trips to Whistler, British Columbia; New York; Las Vegas; Tuscany, Italy; The Masters Golf Tournament and the 2011 Super Bowl.

Every year, the Coastal Auction Group volunteers their time and efforts to charitable causes and events. More and more non-profit agencies are realizing that seeking the talents of professional auctioneers can greatly increase the enthusiasm and prices achieved for auction items sold at fundraising events.

At the 2010 National Auctioneers Association Conference and Show in Greensboro, NC, Jeff Jourdan was awarded 11 First Place marketing awards including the top 3 honors of Grand Champion, Auction of the Year and Best of Show Photography. The innovative marketing, advertising and public relations campaigns beat out over 1,000 other entries from all over the world.

This year’s competition was judged by the USA TODAY and judges selected Jeff for the following top awards: Grand Champion, Auction of the Year, Best of Show Photography, Newspaper/Magazine Advertising, Business Stationary, Presentation Folder, Auction Proposals, Auction Summaries, Public Relations/Special Events and 2 Photography Categories (Buyer Excited About Purchase and Technology in Use During An Auction). Jourdan was the only winner from Northern Florida and one of only two winners in all of Florida to win at the competition.

The Auction of the Year and Grand Champion are determined by an auction’s innovativeness, creativity, crowd pleasing aspects, revenue earned, technological advancements, promotional elements, auction crowd attendance, items sold, satisfaction of clients and bidders and the atmosphere of the event. “It is such an honor to win both of the top awards at this competition. To have an auction that I worked so hard at recognized as the top auction conducted worldwide last year is a huge honor,” commented Jourdan.

According to Jeff, “Marketing campaigns in the auction industry are concentrated into just a few weeks, making creative marketing and advertising vital to an auction’s success. The Grand Champion award was given thanks to the innovative marketing that I implemented for a large condo auction while working with another firm.”

Creative marketing and advertising is essential in the auction industry for successful sales and Jeff and his team continue to distinguish themselves from the competition. Including these 11 awards, Jeff has now won 21 awards over past three years. That is more than any other auction marketing professional in this area and in the state of Florida.

Jeff Jourdan is now president of Coastal Auction Group, a Florida based full service real estate auction marketing firm. For more information, contact Jeff at 850-502-9210 or e-mail jeff@coastalauctiongroup.com.