how do auctions work?
While conventional methods of selling real estate continue to dominate the national market, auctions are quickly growing in popularity. The stigma that real estate auctions are only for "distressed" property sales is changing as more and more real estate sells at auction, at top market prices!
A good auction opportunity exists when a seller is auction-minded, with the confidence that their property will bring a fair market price. They should have a strong equity position in the property, want to avoid paying sales commissions and be time sensitive...requiring a timely sale that they control, so they don't have high carrying costs associated with the property.
A good auction opportunity also exists when the real estate market and/or buyers are changing, where there is a limited supply of a particular property type with strong buyer demand (i.e. ocean-front property) or there is a flat or declining market with little buyer interest for conventional property sales.
Offering a property at auction creates a sense of urgency, bringing all interested parties together on one specified day. And this process of selling a property establishes its own sales price through competitive bidding.
All property sold at auction is sold as-is, where-is on the sale day, with buyers questions answered from disclosures and reports provided prior to the sale. On the sale day, the property is sold with no contingencies, to a buyer who is pre-registered and pre-qualiified...with certified funds for deposit in hand!
1. Timely
Auctions are NOW events, bringing together serious sellers and buyers.
2. No Contingencies
Inspections/Reports are completed before the auction begins.
3. Quick Close
Typically, escrow closes within 30 days.
4. Market Value
Auctions realize the property's true market value.
5. Easy
The auction process manages both seller and buyer, including purchase and close dates.
6. Fun
Auctions generate heightened excitement, for seller AND buyer.
A good auction opportunity exists when a seller is auction-minded, with the confidence that their property will bring a fair market price. They should have a strong equity position in the property, want to avoid paying sales commissions and be time sensitive...requiring a timely sale that they control, so they don't have high carrying costs associated with the property.
A good auction opportunity also exists when the real estate market and/or buyers are changing, where there is a limited supply of a particular property type with strong buyer demand (i.e. ocean-front property) or there is a flat or declining market with little buyer interest for conventional property sales.
Offering a property at auction creates a sense of urgency, bringing all interested parties together on one specified day. And this process of selling a property establishes its own sales price through competitive bidding.
All property sold at auction is sold as-is, where-is on the sale day, with buyers questions answered from disclosures and reports provided prior to the sale. On the sale day, the property is sold with no contingencies, to a buyer who is pre-registered and pre-qualiified...with certified funds for deposit in hand!
6 Reasons Why a Real Estate Auction Benefits You...as a Seller or a Buyer!
1. Timely
Auctions are NOW events, bringing together serious sellers and buyers.
2. No Contingencies
Inspections/Reports are completed before the auction begins.
3. Quick Close
Typically, escrow closes within 30 days.
4. Market Value
Auctions realize the property's true market value.
5. Easy
The auction process manages both seller and buyer, including purchase and close dates.
6. Fun
Auctions generate heightened excitement, for seller AND buyer.