From FDIC to private sales: The evolution of real estate auctions - by Justin Manning

I recently found myself in a conversation with some seasoned real estate investors who have been immersed in the world of property auctions for over three decades. As we reminisced, the conversation naturally drifted back to the late 1980s and early 1990s – a turbulent period for the banking and real estate industries. During that time, the newspapers were full of foreclosure auction listings, many conducted by auctioneers like Manning and Saperstein. But these weren’t just ordinary auctions. They were often commissioned by failing banks and, more notably, by the Federal Deposit Insurance Corp. (FDIC).

As we exchanged stories, a young real estate agent nearby overheard us and asked a simple but telling question: “What’s an FDIC auction?” I chuckled and said, “You’re too young to know!” But I couldn’t resist explaining the scale of the financial crisis back then and how the FDIC played a crucial role in trying to remedy the situation. The collapse of numerous financial institutions had left the FDIC with an enormous portfolio of foreclosed real estate assets that needed to be liquidated quickly and efficiently. This task was so massive that the government had to create additional agencies just to help manage the overflow.

Veterans of that era will remember entities like the Resolution Trust Corp. (RTC) and Recoll Management. These agencies were formed to deal with the unprecedented volume of distressed assets resulting from the savings and loan crisis. Unlike today, there was no internet to streamline processes. Instead, information was physically transported in banker boxes, shuffled back and forth between law firms, banks, and auction companies using overnight couriers. It was a labor-intensive, paperwork-heavy era.

I vividly remember when my father, Jerome Manning, founder of our company, JJManning Auctioneers, was contacted by FDIC headquarters in Dallas. They asked him to come down as a paid consultant and help train their new staff on how to conduct successful foreclosure auctions. That moment was both a sign of the times and a testament to his reputation in the auction world. The expertise he shared during those critical years not only helped stabilize part of the real estate market but also shaped how our business would evolve in the decades to come.

Fast forward to today, and fortunately, the economy – and the real estate market – has come a long way since those dark days. In my own 32 years with JJManning, I’ve watched the nature of our business change significantly. Where once we were primarily focused on foreclosure and distressed sales, we’ve seen a steady and consistent rise in private, voluntary auctions as a share of our operations.

We took the same procedures and best practices we developed during those high-pressure FDIC auctions and applied them to a new category of clients – people who were choosing to sell, not forced to. These voluntary sellers include estates, divorcing couples, dissolving business partnerships, families relocating, and others looking for a streamlined, effective way to liquidate their real estate assets.

To this day, I still hear the same question almost daily: “Why would someone choose to auction their property? Why not just list it for sale?” It’s a fair question and one that used to frustrate my father. He felt, understandably, that auctions were often misunderstood and unfairly stigmatized – associated only with distress or financial desperation. Over time, I’ve learned to embrace that question as a teaching opportunity, a chance to reframe the conversation and broaden people’s understanding of what auctions can offer.

At JJManning, we educate clients that the auction process isn’t about desperation – it’s about control and transparency. Sellers choose auction because it gives them the power to determine how their property is marketed, when it will sell, and when it will close. Unlike traditional listings, where properties can sit stagnant on the market for months with multiple contingencies and uncertainties, an auction is a no-contingency, time-defined sale. That’s powerful. It allows our clients to plan with confidence, knowing there’s a committed buyer and a set closing date. Recent rules requiring home inspections and/or home inspection waivers have created more hurdles for motivated sellers. Luckily, real estate auctions fall into one of the few exclusions to this new inspection requirement process and red tape.

In many ways, the public perception of auctions has finally started to shift. While we still work to dispel the outdated notion that auctions are only for troubled properties, more and more sellers are recognizing the strategic benefits. A properly marketed auction can generate strong interest, foster competitive bidding, and ultimately deliver true market value – sometimes even above expectations.

The real estate auction industry has come a long way since the FDIC days. But what hasn’t changed is the value of experience, adaptability, and integrity. We’ve taken lessons learned from decades of navigating the toughest markets and applied them to help people solve real-world problems – whether they’re under pressure or simply looking for a smarter way to sell.

And so, what began as a reactive service in times of crisis has evolved into a proactive strategy for sellers who want certainty, speed, and control in today’s dynamic market.

Justin Manning is president/owner of JJManning Auctioneers, Yarmouth Port, Mass.