Welcome!

News Feed Item

Beacon Economics Report Confirms That Auction.com Market Validation Program(TM) Improves Short Sales Results

Higher Sales Prices Benefit Sellers, Neighborhoods and Noteholders

IRVINE, CA AND SILICON VALLEY, CA--(Marketwired - June 17, 2014) - Auction.com, the world's largest online real estate marketplace, today released a report prepared by Beacon Economics, an independent research and consulting firm, that concludes that the company's Market Validation Program™ (MVP™) delivered significant increases in short sale prices, and reduced short sale discounts for both single family homes and condominiums.

"Our MVP program has delivered tangible benefits to the key constituents in short sales transactions across the country," said Jeff Frieden, CEO and Co-Founder of Auction.com. "By delivering higher short sales prices, we've reduced the deficiency and potential tax burden of distressed borrowers, protected property values for other homeowners in the neighborhood, and enabled lenders and investors to reduce their losses."

The Beacon Economics report, titled "An Analysis of Short-Sale Prices: Traditional Short-Sales vs. an Auction Platform," analyzes short sales data from nine markets on transactions completed between March 2013 and January 2014. Among its findings, the report concluded that:

  • Single family homes sold on Auction.com sold for 10.7 percent more than their original short sale offers
  • Condominiums sold on Auction.com sold for 11.4 percent more than their original short sale offers

"One of the unique aspects of this program is that it is a collaborative effort between real estate professionals, mortgage servicers and Auction.com aimed at delivering the best outcome for all parties," added Charlie Lee, EVP/Short Sales of Auction.com. "By adding the global exposure and transparency of an online auction to the local market expertise of real estate agents and brokers, we can work together to protect the interests of distressed property sellers, neighboring property owners and lenders."

Jessica Collins, a real estate agent with Snow Canyon Marketing in St. George, Utah, shared her experience with the program. "I used Auction.com on a short sale property I had listed. They were able to answer my seller's questions and concerns and I felt that this was the best route to get the short sale done successfully. The online platform gave us great exposure to investors and buyers all over the country, and I think it helped get the home sold faster. I am very pleased with the results and look forward to working with them again in the near future."

The MVP program is the first of its kind in the industry. Once an offer is received by the mortgage servicer or lender, the listing agent and borrower are asked to put the property on Auction.com for an online auction, to see if a higher bid can be attained, or to validate that the offer is the best available price. This helps fulfill the servicer's responsibility to reduce loss severity and deliver the best possible return to the mortgage holder, and improves the likelihood of a short sale offer being approved.

"In an industry that has imperfect information, the auctioning process helps prevent inefficient offers from being accepted by a seller because it raises awareness of a property's assets to more potential buyers," said Christopher Thornberg, one of the study's lead authors and Founding Partner of Beacon Economics. "Not only does Auction.com yield higher prices for short-sales listed through the MVP program than originally offered to the seller, but we found the final prices were significantly greater than the short-sale prices we projected based on similar property characteristics."

On a national basis, over 8,000 short sales have been conducted via the MVP program, which has generated higher offers on 54 percent of the properties marketed. Some regions had even stronger performance: for example, over 67 percent of homes marketed in California generated a higher bid, with sales prices averaging $50,000 more than the original offer. The Beacon Economic report had similar findings when analyzing data from the nine markets included in the study: Chicago, Las Vegas, Los Angeles, Miami, Phoenix, Riverside/San Bernardino, Sacramento, San Diego and Tampa.

The company also offers a direct-to-auction product for borrowers and servicers who prefer to do short sales directly via an online auction rather than waiting to receive an initial offer. For more information on the MVP program, visit http://www.auction.com/lp/market-validation/.

About Auction.com:

Auction.com, LLC, is the nation's leading online real estate marketplace. Founded in 2008, the company has sold nearly $20 billion in assets since 2010. Auction.com has over 900 employees and offices in Irvine and Silicon Valley, California as well as offices in Atlanta, Austin, Denver, Miami, Newport Beach, New York and Plano. Visit Auction.com for more information.

About Beacon Economics
Beacon Economics, LLC is an independent economic research and consulting firm with offices in Los Angeles and the San Francisco Bay Area. The firm delivers economic analysis and data sites that help their clients make informed, strategic decisions about investment, growth, revenue, policy, and other critical economic and financial issues. Their nationally recognized forecasters were among the first to predict the collapse of the housing market and foretell the onset and depth of the economic downturn that followed. Core areas of expertise include economic and revenue forecasting, market and industry analysis, economic impact studies, economic policy analysis, and international trade analysis.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
"There's a growing demand from users for things to be faster. When you think about all the transactions or interactions users will have with your product and everything that is between those transactions and interactions - what drives us at Catchpoint Systems is the idea to measure that and to analyze it," explained Leo Vasiliou, Director of Web Performance Engineering at Catchpoint Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York Ci...
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
In the next five to ten years, millions, if not billions of things will become smarter. This smartness goes beyond connected things in our homes like the fridge, thermostat and fancy lighting, and into heavily regulated industries including aerospace, pharmaceutical/medical devices and energy. “Smartness” will embed itself within individual products that are part of our daily lives. We will engage with smart products - learning from them, informing them, and communicating with them. Smart produc...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
SYS-CON Events announced today that Catchpoint, a leading digital experience intelligence company, has been named “Silver Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Catchpoint Systems is a leading Digital Performance Analytics company that provides unparalleled insight into your customer-critical services to help you consistently deliver an amazing customer experience. Designed for digital business, C...
“DevOps is really about the business. The business is under pressure today, competitively in the marketplace to respond to the expectations of the customer. The business is driving IT and the problem is that IT isn't responding fast enough," explained Mark Levy, Senior Product Marketing Manager at Serena Software, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed ...
WebRTC sits at the intersection between VoIP and the Web. As such, it poses some interesting challenges for those developing services on top of it, but also for those who need to test and monitor these services. In his session at WebRTC Summit, Tsahi Levent-Levi, co-founder of testRTC, reviewed the various challenges posed by WebRTC when it comes to testing and monitoring and on ways to overcome them.