Did you ever fall for one of those ads promoting an online home based business? If you did your not alone. You know, you can’t stop the scams of this world, but you can protect yourself if you get the right information about home based businesses. That’s what will look at in this article.What’s your first though when you think of a home based business? I bet it is extra money, maybe a part time income or even turning a hobby into profit. These are all valid thoughts, but I want you think about one more thing, think about residual income. This is where the online world separates itself from other home based businesses. If your going to spend the time building a business, why not include in your plan an element for recurring income.Online IncomeI don’t know any other type of business where it’s open 24/7, you don’t need inventory and you don’t have to spend a penny in gasoline because you do it all from home. Folks have two misconceptions about the online business. One, it’s to hard and two, they can’t picture making money from the Internet.The truth is, it’s not easy, or I should say it’s not as easy as your led to believe from the TV ads. This is like anything else, when everyone jumps on the bandwagon it gets crowded. The other side of the coin is, there’s a lot of junk on the Internet and if you truly take this seriously, you then can brand yourself over time in a very profitable manner.Where To Start?If you’ve searched the Internet for home based business ideas, you have seen a variety of ways to get started. The problem is you don’t know the steps to the right way to get started. Who can you trust, what is important to know, what will you sell, these are some of the questions that need answers for a successful start.Now, you know what I’m going to say, I can help.Well, I can’t, but I know who can.
Real Estate Auctions – The New Land Rush
On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.
Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.
Real Estate Auctions Work in Up or Down Markets.
Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.
The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.
When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.
Evaluating Your Real Estate for Auction
Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.
Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.
Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.
Locate a Qualified Real Estate Auctioneer
Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.
Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.
You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.
Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.
Types of Real Estate Auctions
Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:
Absolute Auction
The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.
Minimum Bid Auction
Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.
Seller Confirmation or Reserve Auction
With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.
Marketing for Professionals
Several years ago, I was riding the Metro subway in Washington, DC and got off at the end of the line. The location was in a depressed area, and few businesses were there for commuters. As I waited for my ride, I saw these two boys carrying a huge box of M&Ms in hopes of selling to weary commuters. I found it amusing that these young men were hustling in such a manner. Yet, this spoke to the spirit of entrepreneurs. The boys found an unmet need in the market. Yes, with no stores located in the immediate area, these young men sold a lot of M&Ms to hungry commuters.
With increasing competition abroad, today’s professionals cannot afford to be ignorant in understanding business practices such as marketing. The problem is that marketing is not second nature for all business professionals. Sadly, most business owners do not have the time to take a long, drawn-out college course, while others want a simple process for understanding the basic concepts until they can take more formalized courses. In fact, when you do not have a lot of money to spend on advertising your product, you have to be smarter and more creative in order to stay ahead of the competition.
Marketing is the cornerstone of understanding today’s economic changes. Philip Kotler and Kevin Keller, authors of Marketing Management, argue the important of understanding marketing concepts for today’s professionals: “The first decade of the 21st century challenged firms to prosper financially and even survive in the face of an unforgiving economic environment. Marketing is playing a key role in addressing those challenges… Thus financial success often depends on marketing abilities.”
Consequently, marketing gives individuals the ability to understand how to locate these opportunities and what to do with them when you find them. According to the American Marketing Association, marketing can be defined as an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers. However, the simplest definition is that marketing is about understanding and satisfying customer wants or needs.
In fact, there are times when customers do not know what they want or desire. Marketing then becomes that linchpin in the process of finding a solution for the consumer. Traditionally, marketing has been defined in terms of four variables described as the marketing mix, or the 4Ps: product/service, price, placement, and promotion.
Furthermore, the marketing mix is the controllable set of activities that entrepreneurs use to attract or respond to the needs of their target market. In essence, entrepreneurs attempt to create value for their customers. Value relates to the customer viewpoint, not that of the business. Value relates to the benefits the customer perceives they are getting in exchange for their purchase of the product or service.
Business experts Donald Lehmann and Russell Winer point out that inaccurate information or incorrect analysis often leads to poor decisions about marketing a business product. This flaw can hurt a business attempting to make a profit. In fact, understanding competition is a point most executives miss. Some of the questions executives should ponder include:
Who are my competitors?
What are the competing product features?
What is their positioning strategy?
What markets do they currently own and what is their future outlook?
How do you distinguish your products from those of your competition?
How do consumers make this distinction in products?
In today’s global markets, organizations cannot operate with a ‘trial and error’ mentality. In fact, what worked yesterday is no guarantee that it will be successful in the future. Business professionals who are less knowledgeable about marketing and marketing forces are a liability to organizations that aim for sustainable success.
Successful entrepreneurs understand how to tap into their target market instead of random selling. Why should the expectations be any lower for today’s professionals? Therefore, savvy professionals seek to understand and implement effective marketing strategies.