The Benefits of Selling at Auction

The auction method for marketing and selling property is a time-proven method for maximizing the value of your property and converting it to cash.

There are many reasons that make auctions an effective selling tool:

• Auctions get immediate action for the seller.
• Auctions create competition among buyers by instilling a sense of urgency and excitement, therefore heightening bidder-interest.
• Auction prices can exceed those found in closed negotiations by using an open, rapid bidding environment to achieve the highest price.
• The auction method exposes property to a larger number of potential buyers.
• Marketing at auction is an accelerated sales technique, with property being sold just weeks, even days, after a seller signs a contract.
• Liquidity — auctions convert property into cash very quickly.
• Selling at auction achieves the true market value for a piece of property at any given time.
• Auctions bring interested buyers to a point of decision – act now or lose the chance to purchase.

REAL ESTATE AT AUCTION:

Selling real estate at auction is a growing trend. In a slow real estate market, it avoids a “wait-and-see” mentality from buyers. In a fast market, it maximizes a multiple offer situation by using an open, competitive bidding situation!

Real Estate at auction is offered in a “As-is, Where-is” condition. This prevents buyers from negotiating complicated and costly contingencies into contracts. Every pre-qualified and motivated bidder competes with other prospective buyers to reach the highest price possible for a piece of real estate. Our auctioneers are present at every showing of your real estate, and handle every bidder inquiry. 

Selling real estate at auction means your property will be listed, marketed, sold, and reach closing in a set period of time. Often this entire process only takes about two months. Our accelerated marketing technique makes this possible. Your property can be advertised through direct mailers, brochures, print publications, multiple listing services, internet real estate websites, and highly-visible signage. 

Just having the word “AUCTION” tied to a real estate sale makes it stand out over other listed properties!

Property can be sold absolute, or with a reserve. An absolute auction is when property is sold to the highest bidder, regardless of the price. Typically an absolute auction is the best way to sell real estate at auction and usually draws more bidders on the day of the sale. At a reserve auction, the seller pre-confirms a price that, if reached, the property may sell. If bidding does not reach the reserve price, the seller may chose to sell by confirming the high bid at the end of the auction.

Unless an auction is advertised as “absolute”, it is considered to be a “reserve” auction.

Here are some other important factors to consider about real estate auctions:

• Listing a property with a set price prior to selecting the auction method may establish a ceiling for bidders. A property is likely to sell more at auction if bidders don’t know how much a seller expects for his or her real estate.
• When selling at auction, the price always is negotiated upward. With a traditional listing, real estate is almost always negotiated down, first.
• Auctions eliminate high seller carrying costs such as mortgage interest, taxes, maintenance, insurance, utilities, up keep and deferred depreciation.
• Auctions reduce the time property sits on the market.
• The seller can free up capital and move to another investment.

If you want to schedule a consultation Damewood Auctioneers to discuss selling your real estate at auction, please contact us.