Open House by Jim Woodard

The auctioning of homes is becoming an increasingly popular marketing technique — particularly for foreclosed properties and unique upper-tier "one of a kind" type homes that are difficult to appraise.

Last year alone, about $58.6 billion in real properties were sold at the clap of an auctioneer's gavel, according to the National Auctioneers Association. Due to this increasing activity, the NAA has launched a website listing real estate auctions in a "multiple listing service" style format.

Rather than fighting the trend, many Realtors are embracing home auctioning as a viable marketing method. In some cases, they contribute listed homes to group auctions. They can also register prospective bidders at an auction and receive a commission on a property they might buy. The National Association of Realtors now has educational programs for its members on auctioning and its benefits.

The auctioning of foreclosed properties is a particularly hot marketing niche. An increasing number of firms have recently entered this field, offering to auction groups of foreclosed homes owned by lenders who are very anxious to reduce their inventory.

One company — Auction.com — has auctioned more than 19,000 foreclosed homes so far this year, according to a company report. One national online auction in August generated $31.7 million in auction sales. It sold 770 foreclosed homes in 45 states, it was reported.

"This was our most aggressive online foray into auctions on a national level," said Auction.com CEO Jeff Frieden. "We now plan to do these auctions every month. Our next national online auction is set for Sept. 21-26 and will offer foreclosed homes in about 40 states."

The auction company receives a 5 percent "buyer's premium" commission for each property sold, according to Rick Weinberg with Auction.com.

Another type of residential property where auctioning is very effective is luxury or "trophy" homes, often selling for multimillion dollar prices. These properties are difficult to accurately appraise, due to lack of comparable property sales data.

Also, the carrying cost of owning such luxury properties is very high, thus raising the "urgency level" of finding a buyer and consummating a sale. An auction can often solve these problems.

Q: Why are so many urban land parcels used for community gardens?

A: Urban farming, or community gardens, is becoming increasingly popular and beneficial to communities.

More local governments are actively supporting this use of selected land parcels within their jurisdictions.

Urban farming is generally practiced for much needed income-earning or food-production activities. It also provides a viable source of recreation and relaxation for participating citizens who want to exercise their "green thumb" capabilities.

The practice dates back to ancient Persia. During the past century, it brings back memories of the Victory Gardens during World War I and World War II. These gardens were developed and maintained by citizens who wanted to produce food, thus relieving supply pressures due to the war effort.

Today, about half of the world's population lives in urban areas. More people than ever before (about 800 million) are involved in urban agriculture. The Food and Agriculture Organization (FAO) describes urban gardens as "an industry that produces, processes and markets food, largely in response to the daily demands of consumers within a town or city. Participants apply intensive production methods, using and reusing natural resources and urban wastes to yield a diversity of crops."

An example of a community that now actively supports urban gardens is Bloomington, Ind. Their city council passed an urban agriculture ordinance. With an unanimous vote, they ruled that urban gardens are permitted activities in all residential zones within the city.

Q: Are homeowners still insisting on unrealistically high prices?

A: Homeowners are now much more realistic about the current value of their home than they were a few months ago. At the same time, they are more optimistic about the future of home values and the housing market in general.

This new trend was revealed in a recent survey conducted by Zillow.com. About 60 percent of homeowners now believe their home lost value during the past year. Actually, 83 percent of homes lost value during the past 12 months, Zillow.com noted. However, 81 percent of homeowners believe their home's value will not decrease over the next six months. The survey responses reflected a strong increase in consumer confidence in the housing market.

The survey also showed that many homeowners are still waiting on the sidelines to sell or buy a home. When asked about future plans to sell, 29 percent of homeowners said they would be "somewhat likely" to put their homes on the market within the next 12 months, particularly if they saw definitive signs of a real estate market turnaround.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.

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