Sellers Guide to Auctions
Selling Real Estate through Auctions
Owners sell for different reasons, but one point remains constant: Today’s shrewd investors are very conscious about the time value of money and want quick results. They know that a market can change quickly, and holding properties for sale can erode equity rapidly as values begin to decline. Holding costs for the property can become a primary motivation for some, and others plan their marketing to provide the fastest form of sale for a project.
Auction marketing works well in both weak and strong markets. Attorneys, trustees, and individuals with other types of fiduciary responsibility recognize the value of the auction method of marketing assets for both speed of sale and the fact that the legal system favors open, public bidding.
Financial institutions are becoming more sensitive to properties classified as other real estate owned (OREO) on their books in today’s economic climate. Consequently, they have become more aggressive in their marketing of such properties, usually through the auction method.
Advantages of selling at an auction:
Speed – Auctions are the fastest way to sell residential property, commercial property, or land. From start to finish, the auction can be completed in as little as eight weeks.
Success – By going to auction, you already have a higher chance of a sale. These success rates on auctions are rising every year!
All Sales are Final! – SOLD! Once the auction is over the buyer is legally committed to the purchase. Around 30% of traditional real estate sales fall through. Auctions are a fast and secure way to ensure a deal is made.
Marketing – By going to auction, we will show your property to our database of over 3,000 contacts in South Florida. Associate Auctions will also feature your property on our website and social media accounts. This reach is the fastest and easiest way to get the word out about your auction.
Competitive Bidding – It’s just like the movies. Buyers go head to head against other bidders, having full transparency of where they stand in the bid. Sellers get the maximum value for the property, and the deal and price are final once the auction ends.
Best Price – In most cases, the final sale price exceeds the original guide price set.
Many of America’s largest corporations also seek to reallocate real property assets through the auction method.
The reallocation of such assets becomes essential to the success of merger and acquisition activities and overall corporate restructuring dictated by market-driven changes in strategic plans. Institutional investors in real estate frequently keep a mix of properties in their portfolios. When the decision is made to divest of specific properties or a forecasted change in market conditions necessitates a reevaluation of assets held, many turn to auction marketing firms for assistance.
Interested in selling your property? Reach out at (772) 219-8108!
Learn more about the buying process. Visit our Buyers Guide here.
