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Auction Benefits: Everyone Wins!
Benefits to the Seller
- Seller pays no commission
- An auction generates excitement and heightens buyer interest
- Property is sold "as is, where is" without contingencies
- Brings interested buyers to a point of decision - they must act now or lose an opportunity to purchase
- Buyers are prepared to Buy
- Assurance that property will be sold for true market value
- Shorter marketing time which reduces carrying costs, taxes and maintenance
- Exposes the property to a large number of pre-qualified prospects
- The seller knows exactly when the property will sell
- Eliminates numerous and unscheduled showings
- Ensures an aggressive marketing program that increases interest and visibility
- Once the auction-marketing program begins, sales on competitive properties that are for sale in the area are virtually eliminated until the auction sale is completed.
- The seller actively participates in the sale process
- The Auction takes the seller out of the negotiation process
Benefits to the Buyer
- Buyers know they are competing fairly and on the same terms as all other buyers
- Smart investments are made as properties are usually purchased at fair market value through competitive bidding
- The buyer knows the seller is committed to sell
- Purchasing and closing dates are known
- Buyers determine the purchase price
- Long negotiation periods are eliminated
- Buyers receive a comprehensive information package on the property in order to do due diligence
- Broker, Realtor and Salesperson participation are encouraged
Properties Suitable for Auction
Most properties are saleable by auction. All types of residential, commercial and industrial properties, as well as vacant land are good candidates for sale through this method. There are some instances where the auction may not be a suitable marketing technique and those are situations when the property will only appeal to a narrow market and in those instances we provide a customized marketing plan for a conventional sale.
A good auction property is one that may:
- Have a high percentage of equity
- Be unique, but there are still enough potential buyers to market it
- Be vacant - the auction process is fast and reduces the risk of liability and or vandalism
- Be difficult to appraise - the auction provides the atmosphere where fair market value is achieved by exposing it to the greatest number of potential buyers.
- Be located in an area where there is an over supply of homes in relation to the number of buyers.
- Be sensitive to timing in its sale.
Learn more about the auction process ...
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