Auction Q&A

Why should I SELL my real estate at auction?

  • There is an individual advertisement campaign on each individual auction. Makes your property stand alone and therefore stand out in brochures, newspapers, mailing lists, internet, roadside banners, pointers, etc.
  • Reduces market time.
  • Creates competition among buyers.
  • Exposes property to a larger number of potential buyers.
  • Accelerates closing time usually within 30 days.
  • Seller knows exactly when the property will sell.
  • Eliminates unwanted showings.
  • Takes seller out of the negotiating process.
  • Seller sells to their terms and conditions.
  • Competitive bidding brings true market value.
  • Usually draws prices higher than seller’s expectations.

Why should I BUY real estate at auction?

  • Buyers can set their own purchase price.
  • Purchase property at fair market value.
  • Eliminates potential of long negotiation time.
  • Reduces purchase time.
  • No worries about contingencies because purchasing and closing dates are known.
  • Prospective buyers know owners are motivated to sell.

Why have an absolute auction?

  • Property sells on a specific date to the highest bidder, regardless of price.
  • Since sale is guaranteed, buyer excitement and participation are heightened.
  • Generates maximum response from the market place, thereby being the only auction process to ensure attaining true market value.
  • Many sellers, including financial institutions and other agencies have started to use this method more often since an absolute auction offers the best performance of all other auctions.

Why should I NOT have a minimum bid auction?

  • Auctioneer accepts only bids at or above minimum price.
  • Buyers know that they can only buy at or above a minimum price. For the seller this may limit his or her interest in the auction to only those buyers who are willing to pay the minimum bid price. Therefore the minimum bid price must be low enough to act as an enticement rather than a hindrance. It is not only difficult to set this lower price, but there is a great risk of price setting your auction.

Why should I NOT have a reserve auction?

  • With a reserve auction, the high bid is reduced from a sale to just an offer.
  • At a reserve auction the minimum bid is not published, and the seller reserves the right to accept or reject the highest bid within a specific time.
  • Sellers predetermine the sales price at which the property will be sold and are not obligated to confirm a sale other than a price that is acceptable to them.
  • The biggest disadvantage of a reserve auction is the prospective byres usually will no invest the time and money of their due diligence when there is no certainty that they will be able to buy the property, even if they are the highest bidder.
  • The level of excitement of this type of auction is usually much lower, and this process affects the attaining true market value SIGNIFICANTLY.

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