An auction is a highly efficient and expeditious way to sell any type of real estate. The terms are straightforward and competitive bidding generates market value. Below are some key benefits our sellers enjoy when they choose a land, commercial or home auction process.
Benefits To The Auction Seller:
Speed: The sale cycle is compressed and buyers are motivated to act quickly. No longer does a home linger on the market for months. A typical auction results in a sale in 30 days or less.
Date-specific: Plan your sale when it makes the most sense for you. You set a date for the auction, and you gain a market-value return on your investment on that date.
True Value: There is no risk of overpricing or underpricing the property. In an ordinary listing you’re forced to pick an asking price based on recent sales and gut feeling. But sell too quickly, and your property may have been underpriced. If it lingers on the market, it was probably overvalued. A real estate auction returns your home’s true market value through competitive bidding.
Urgency: Auction heightens buyer interest and attracts attention in a crowded market. Buyers no longer have the luxury of waiting for a price reduction or submitting multiple low offers on a variety of properties. They understand that your property will be sold on the published date and they act accordingly.
Saturation Marketing: All properties benefit from a professional, customized advertising campaign. Because the sale date is pre-determined and the marketing period is compressed, a complete marketing plan can be built with daily and weekly activities. Multiple channels can be hit simultaneously and repetitively.
Attractive Buyers: Buyers come qualified and prepared to buy. An ordinary contract allows buyers multiple “outs” with little or no recourse. Auction buyers come ready to put down a sizable non-refundable deposit. And they are willing to buy the property without the contingencies that so often lead to failed closings and extended listings.
No Extra Work: There is no requirement to do work on the property; it sells as-is. Many real estate agents will recommend a laundry list of improvements before even listing. Traditional buyers often produce numerous demands for work they want done. Auction avoids both situations.
Reduced Carry Costs: Quick disposal reduces long-term carrying costs such as mortgage, taxes, insurance & maintenance. This ultimately saves you money, in addition to the extra value you capture through sale in a competitive auction environment.
Certainty: Protracted and unknown time on the market is not a factor. The seller knows exactly when the property will sell and can plan accordingly.
Maximum Exposure: “Saturation Marketing” generates the greatest possible exposure for the property. The key to maximizing your return is capturing as many prospective buyers as possible.
Reduced Showings Hassle: The headache of ongoing showings is reduced. Since the property only needs to be marketed for a limited time prior to the auction, all showings must take place in that prescribed period.
No Negotiation: The stress of negotiating is eliminated because auction terms are fixed for all bidders. Your buyer has already agreed to purchase the property “as is” and without any contingencies. There’s simply nothing to negotiate.
No Contingencies: Contingencies (for inspections, financing, appraisals, etc.) are not allowed. Additionally, the high bidder pays a non-refundable deposit as commitment to complete the closing process as contracted.
Why To Choose Auction:
Results in a sale in 30 days or less.
Returns your home’s true market value.
Auction buyers come ready to put down a sizable non-refundable deposit.
Reduces long-term carrying costs.
Negotiating is eliminated.