Group raising awareness about real estate auctions

As home auctions gain popularity in Charleston, a handful of local real estate auctioneers are banding together to dispel myths that surround their practice.

"The first (misconception) is that you're going to sell their house for $5," explained Linda Page, a real estate auctioneer and owner of Page's Thieves Market Inc. in Mount Pleasant.

In fact, most homes sell at a price that's between 70 percent and 95 percent of the listing price through the Charleston Trident Association of Realtors Multiple Listing Service. That's according to a detailed analysis of last year's auction sales by auctioneer Mike Harper.

"It's an indicator for sellers for what they can expect to attain," he said.

The point of the new group is to raise awareness of the professionalism behind the trade. A proper real estate auctioneer maintains both a real estate license and an auctioneer's license, Page said.

Auctions have taken the spotlight during the slowed real estate market because they can help move property quickly and efficiently. Though they are receiving a lot of attention these days, real estate auctioneer Scott Hodges is quick to point out that the sales technique has been around a while.

"A lot of people have (the idea) that they are a fad or brand-new, but the auction method has been around for thousands of years," he said.

Hodges, whose company is called Grand South Auctions, recently joined Keller Williams Realty. He said that the merger is a sign of a company that continues to "think outside of the box" when it comes to alternative ways to sell real estate.

Going twice

Speaking of auctions, Trademark Properties' "Liquidation Sensation" campaign comes to a close Friday at the Gaillard Auditorium.

As of late last week, the James Island real estate company had about 410 properties across the state signed up to be auctioned off in front of a select group of potential buyers. The properties' total value tops $150 million.

In Charleston, about 46 properties, mostly single-family homes, are up for grabs. They range from luxurious beachfront properties on Seabrook Island, Edisto Island and the Isle of Palms to more modest homes on Daniel Island and in North Charleston. Many homes are newly built, offered by developers who overshot their inventory.

Broker-in-charge Richard C. Davis, whose firm was profiled in the television show "Flip This House" and later "The Real Deal," said auctions are another "tool in the belt" for real estate agents. They are a good way to link up buyers and investors with property owners who are desperate to sell despite the slower real estate market.

Full disclosure

Leaders at the South Carolina Association of Realtors have decided to continue releasing statewide home sales data on a monthly basis.

Nick Kremydas, the association's chief executive officer, confirmed that the group was deciding whether to release the sales figures on a monthly or a quarterly basis. He argues that quarterly figures would give a broader picture of the state's real estate market.

"The idea was that if you did quarterly releases, you'd have better trend indicators," he said, noting that January sales "don't look so good" compared with January of last year.

But a decision to release information less frequently would have raised eyebrows, given the slowed conditions and the association's bullish stance on the real estate market.

In North Carolina, the statewide professional group for real estate agents releases figures on a monthly basis. Georgia's association isn't releasing sales figures now but plans to start soon — on a quarterly basis.

Reach Katy Stech at 937-5549 or kstech@postandcourier.com.