Auctions are especially beneficial in the following situations
If the property is highly desirable. Competition will spur active bidding and maximize the sales price
If it is determined that the reduced holding costs provided by a timely sale at auction will provide the Seller with a larger percentage of retail value than a sale by private treaty
When the Seller needs to liquidate the property quickly
Everyone Benefits from the Auction Method!
- Extensive marketing plan places your property in the spotlight, and exposes your property to a large number of qualified, targeted prospects
- Auctions set no ceiling price, allowing price to be negotiated up not down
- Attracting a large number of interested buyers stimulates competition. Price may exceed the price by private treaty
- Only qualified prospects attend the auction, not just "lookers"
- Seller sets the terms of the sale and approves the type , amount and timing of marketing efforts for the property.
- Seller doesn't have to leave the marketing of his property up to the real estate agent, who often doesn't have a large marketing budget
- The Auction setting allows you to see competitive bids on your property in a few Affiliated Auction minutes
- Auctions bring prospects to a point of decision. They must act or lose the opportunity
- Converts non-performing assets into cash and/or performing assets
- Reduces time, eliminating haggling and sometimes fruitless negotiations.
- Much quicker than other methods of purchasing
Builds confidence.
- People feel better about their bidding and purchase knowing there were contending bids just under their bid helps buyers reach a decision quickly
- Contingencies are eliminated because buyer is already pre-qualified, there's no guess work regarding financing approval.
- The buyer knows when he will buy and when he will close
- Buyer is competing with another buyer, not with the seller
- Auctions bring out the best buyers because the sale prices are publicly known, not negotiated behind closed doors.
