North Idaho Realtor, autioneer bid to increase sales

An auctioneer’s chant of “going, going … gone!” could become part of more North Idaho real estate sales.

Currently, a little less than 1 percent of all U.S. home sales are conducted by auction, according to the National Association of Realtors. But the sales are growing quickly enough to intrigue Realtors.

Locally, Coldwell Banker Schneidmiller Realty in Coeur d’Alene has forged what it’s calling a “strategic alliance” with auctioneer Randy Wells of Post Falls. In mid-August, the two parties will stage a multi-property auction of houses, land and even commercial property.

“We see it as another tool in the Realtors’ toolbox,” said Gary Schneidmiller, owner/broker of Coldwell Banker Schneidmiller Realty. “If you can bring more buyers to the table, you have a better shot at a sale and a better chance at a higher price.”

Not all properties are suitable for auction, Wells said. He declines to auction property where the seller has unrealistically high sales price expectations — “we’re not magicians, we’re auctioneers.”

But when someone needs to sell quickly — due to a move, divorce or court judgment — an auction can be the way to go, Wells said. The sales usually close within 30 days after the auction.

Sellers pay him to market the property to prospective bidders, a fee that can range from $1,500 to $50,000. The sellers decide whether to accept the highest bid or whether to set a reserve.

Auctions are also helpful in determining prices for trophy or distressed properties, where it’s difficult to find comparable parcels, according to Wells.

“We can find the current market value in about six minutes,” he said.

Tim and Barb Ward’s 4-bedroom house in Post Falls is scheduled for auction next Friday. The couple plans to build a new house and needs to sell their old one before they can start construction. With a cooling real estate market and a glut of homes for sale, the auction seemed like the logical step, Tim Ward said.

“An auction brings people to a decision,” he said. “…and we can move onto the next step.”

Last year, the Wards tried to sell their house for $749,000 through a Realtor. They also tried an auction last year, but set a minimum bid that wasn’t met. This time around, the couple isn’t setting a minimum sales price, Ward said. The highest bidder will get the house, which overlooks Q’emiln Park.

Prospective purchasers from several states have already contacted him. Last weekend, the Wards held an open house so people could go through the property. Two more open houses are scheduled this weekend.

The Internet allows people to research homes before they ever step foot on the property, Schneidmiller said. As a result, most of bidders at auctions arrive well informed. They’ve researched the market and even checked the crime statistics for the neighborhood, he said.

Schneidmiller and Wells will work together on auctions of multiple properties, which is the type of auction that typically attracts strong investor interest. Wells will continue to work with real estate agents from other firms in auctions of individual properties.

Wells, a long-time auctioneer, sold his Post Falls business in 2001 to concentrate on real estate auctions. He now runs Realty Auction Services.

He recently sold the old Albion State Normal School, 35 acres zoned for development in southern Idaho, for $891,000. The auction attracted a bidder from the Netherlands. It ultimately sold to three Boise men, who were interested in the land’s proximity to the Pomerelle Ski Resort.

“It’s not a fire sale,” Wells said of an auction. “In reality, we’ll get current market value.”