Have you ever wondered why you are seeing more real estateauctions in today’s market? Or perhaps, you’ve even considered selling your own property at auction? Occasionally, real estateauctions are perceived to be for sellers who face challenges selling or bank-owned properties. Real estateauctions can be a smart and efficient option to sell a wide variety of real estate properties. In effort to bring light on this matter we sat down with our own Jake Steven, Auctioneer, to provide you with “6 Benefits to Selling at Auction”.
Buyers attend auctions ready to make a purchase. Any inspections desired by the buyers must be completed prior to the auction date. Properties are auctioned in an “as is, where is” condition without any finance or inspection contingencies.
Creates Competition Between Buyers
Auctions create competition! Buyers are often willing to bid higher in an auction environment. Auction results can exceed the price of a traditional real estate listing.
Save Time and Money
Real estateauctions reduce long-term carrying costs, including taxes and maintenance. A scheduled auction also eliminates numerous and unscheduled showings. The seller is free to set the best auction date and closing date that works for them.
Sold at True Market Value
There is no better appraisal than a public auction. The auction process provides peace of mind for sellers in knowing the property is put on the market to the public with an aggressive marketing plan. The buyers determine the market value.
Removes Sellers From Negotiation
In a traditional listing, the seller would list at a price known to the public and then there is typically a negotiation process. With an auction the seller is taken out of the negotiation process forcing the buyers to outbid each other to determine the true market value. This is an advantage to a seller, because in a negotiation scenario there is potential for a seller to leave money on the table.
Aggressive Marketing Program
The marketing campaign on a real estateauction exposes the property to a large number of pre-qualified prospects. The aggressive marketing program and condensed time frame creates a sense of urgency and excitement forcing the buyer to make a decision.