Auction, a Powerful Way to Sell Your Real Estate
Why should you sell your real estate at auction, rather than use traditional methods?
That’s easy! It takes a little courage and vision, but you will yield more, in less time, and with less hassle.
Regardless of the marketing method you choose to sell real estate, to obtain the best possible price you must accomplish only one thing: maximize the number of competing offers. The only way to do this is to aggressively market the property and price the property appropriately enough to create interest. Without both elements, you will not obtain the best available price.
When you list with a broker or sell your property yourself, you determine an asking price based upon what amounts to an educated guess. Your property is advertised and you hope the phone will ring. If you don’t receive an offer, you lower asking price until perhaps one or two buyers “bite”. You counter offer, and perhaps you arrive at an agreed upon price, never really knowing if you could have gotten more because only one or two offers were received. Worse yet, you waited 6 months! If you had 10 or 20 offers at the same time, you would be confident that you did get the best price, right? When you sell real estate at auction it simply works in reverse and we get those 10 to 20 buyers to compete all on the same day that you choose, right in front of one another. Rather than working backwards from an asking price, we start at a minimum price and spotlight your property with aggressive marketing directly to the buyer, rather than waiting for the buyer to come to you.
Auctions create a haggle and hassle free “buy-now/lose your chance” environment in which many buyers are forced to compete face-to-face. This tends to drive up the price of the property. Buyers also close on the property according to the your timetable and terms. This saves money on carrying a current mortgage, tax payments, utilities and lost interest if you own the property outright.
It is a myth that the only property sold at auction is “distressed” is some way. In fact, the better the property, the better the results. If Oprah Winfrey were selling her house at auction, and you had the buying power, wouldn’t you consider bidding? Because of greater access to information and the end of the stigma attached to auctions because of EBAY, TV exposure, etc., 1/3 of all bidders at real estate auctions today are end users; that is, they are not investors or scavengers looking for a deal-they are looking to move in or use the property themselves.
This “haggle and hassle free environment” has advantages for the buyer as well. The buyer knows that if he or she is the successful bidder, they will own the property and have paid a fair market price. Moreover, the purchase process is quick and the closing date is known before they even bid. Wouldn’t you rather buy this way?