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A stagnant real estate market is only one reason to consider an auction. Even during the hey days of the 2004-2005
market, many property owners chose to move their properties through the auction process. Here’s why:
PHOTO BY HOWARD STICKLER
Ron Rennick’s gallery offers a collection of fine art from estates or local sources.
RENNICK from 6
garner the most activity and usually higher
prices. “Absolute auctions are better for
sellers because buyers know they want to
sell.” That attracts more buyers and creates
excitement. Recent Rennick auctions on
the Treasure Coast have attracted up to 100
people, some lookers, but many buyers.
And it’s not unusual for a property to sell
from pre-auction advertising. According to
the NAA, 20 percent of all properties sell
prior to the auction, 60 percent sell during
the auction, and five percent sell within 24
hours of an auction. Only 15 percent don’t
sell, usually because of a reserve price.
Banks with foreclosures on their books
often list with real estate brokers or national
auction firms. Rennick believes that banks
would do better using local auctioneers
that can auction homes on-site and take
the property to auction a lot faster. “Most
buyers come from within a five-mile radius
of the property. If banks would work with
local auctioneers, they would be more liquid a lot faster. It would be better for the
banks and better for the neighborhoods
to get (the homes) back in private hands,”
he said.
Rennick’s real estate expertise harkens
back to when he first arrived in Vero Beach
in the early ’70s and began acquiring older
properties and fixing them up for resale.
He caught the auction fever attending an
auction by Vero Beach auctioneer Jim Graham. “I like the way he did it,” he said. “I
read that he had a school so I went to auction school.” Rennick received his auctioneer’s license in 1980.
Rennick is also a real estate broker for
those who wish to list their homes and for
those who don’t have enough equity for
an auction. The company also appraises
real estate and inventory for insurance purposes. A few times a year, Rennick holds
auctions for the highly collectible Highwaymen paintings, usually holding them
outside of the Rennick Gallery along the
water in Royal Palm Pointe. The last auction in March of 63 Highwaymen paintings, from several private owners, brought
$50,000. In the Rennick Gallery, there are
always a few Highwaymen paintings available for sale. The firm also auctions private
collections of all sorts of merchandise.
The firm’s 10,000-square-foot gallery
is a treasure trove of old world paintings,
antique furniture, silver, estate pieces and
unusual sculptures, some placed on commission, but most of the gallery’s inventory is acquired from Rennick through an
extensive network of antique dealers and
from estate sales.
But it’s real estate that has Rennick
Realtors and Auctioneers working almost
‘round the clock these days.
“Buyers are coming back to the market
but interest rates are starting to creep up.
Every point in the interest rate is like a 20
percent increase in the price,” Rennick
said. “There’s pressure on the interest rates
because of the pressure from the stimulus
plan.”
Asked if we’ve hit bottom yet, Rennick
replied, “I think the term ‘bouncing around
the bottom’ is accurate. I’ve never seen a
correction of this magnitude.”
The Rennick family of businesses,
including the fine art and antique gallery,
is located at 15 Royal Palm Court in Vero
Beach. For more information, call (772)
562-5015 or visit rennickauctions.com,
rennickrealtors.com or rennickgalleries.
com.
▶Liquidity – Especially in a slow market it can be months
before you walk away with cash. With an auction, you can
liquefy your real estate assets very quickly.
▶ Fair Market Price – The buyers set the price for what a
property is worth on that particular day. (Rennick claims
the range he gives sellers up-front is almost always on target
the day of the sale)
▶“As Is” – Real estate is auctioned “as is” the day of the
sale. No inspections. No hold-ups.
▶Prompt Closing- Closings take place within 30 days of
the auction.
▶Seller Flexibility – Sellers have a great deal of flexibility
when setting terms for auctioning their property. If you need
to stay in the property for several weeks following the closing, that can be written into the terms. Buyers bid according
to the seller’s terms.
▶Convenience – The auction company takes care of all of
the details, and if it’s an absolute auction, the seller incurs no
costs.
PHOTO BY HOWARD STICKLER
The economy has increased the number of collectibles available in Rennick’s gallery on
Royal Palm Pointe in Vero Beach.
TREASURE COAST BUSINESS JOURNAL • AUGUST 2009
Why an auction?