Benefit to the Seller
“SOLD!” The sound of the word is music to a seller’s ears. To a property owner going through traditional real estate closing “SOLD” usually means the culmination of months or years of going over contingencies, open houses, payment of the holding costs of owning the property, inspection schedules, and much more. For a seller in a real estate auction, “Sold!” usually comes within 30-60 days.
Auction marketing campaigns also typically cast a wide net. Real estate auctions bring all the bidders together in one place at the same time, creating a face-to-face competitive atmosphere rarely seen in traditional real estate sales. Through an efficient and innovative marketing program custom-designed to the seller’s property, as well as a predetermined auction sale date, the highest benefit of the auction process is realized. It puts the seller in control of when and how the property will be sold. This helps the seller avoid lengthy price and term negotiations.
Clearly, real estate auctions offer owners of all types of real estate properties advantages that are not available with privately negotiated real estate transactions. Here are just a few of them:
Buyers pays the commission*.
The buyer pays the real estate auction company. The last number called at the auction is what is received.
Buyers come prepared to buy and are pre-qualified.
All bidders are pre-registered and often pre-qualify themselves through a lending institution. Bidders are also required to have a deposit in the form of a bank cashier’s check or a certified check. A bidder’s package containing all pertinent information on the property and all the disclosures allow buyers to make informed decisions on whether to bid or not.
Sold as “as-is” and “where-is”.
An auction eliminates disputes over inspection reports. The property condition is contained in the bidder’s package and is provided to a registered bidder for inspection.
Contingency-free sale.
This eases the closing process. The compressed selling time and the intrinsic characteristics of an auction bring all buyers who are willing, able and ready to buy the property on the day of the auction. The seller is then spared the hassles of showings, negotiations, and contingencies.
Generates an arena for competitive bidding.
The seller immediately knows what the market is willing to pay for the property. Bidders openly compete on auction day ensuring that the property is sold at its true market value.
