Auction
An auction is a process of selling a home by taking bids on the home on a designated day and time, and selling to the highest bidder. The misconception of an auction is that the home is in foreclosure, it is an estate, or something is wrong with the home. This in many cases isn't true. Some sellers choose to auction off their home so that they can sale it quicker than placing it on the market in the "traditional" way.
BENEFITS TO THE SELLER:
- Buyers come prepared to buy
- Home is sold "AS-IS" "WHERE-IS" with no repairs
- Auction can be a "Reserve" Auction or as an "Absolute" Auction
- Quick disposal reduces long-term carrying costs, including taxes & maintenance
- Assurance that property will be sold at true market value
- Exposes the property to a large number of pre-qualified prospects
- Accelerates the sale
- Creates competition among buyers—auction price can exceed the price of a negotiated sale
- Requires potential buyers to pre-qualify for financing
- The seller knows exactly when the property will sell
- Eliminates numerous and unscheduled showings
- Takes the seller out of the negotiation process
- Ensures an aggressive marketing program that increases interest and visibility
BENEFITS TO THE BUYER:
- Smart investments are made as properties are usually purchased at fair market value through competitive bidding
- The buyer knows the seller is committed to sell
- In multi-property auctions the buyer sees many offerings in the same place at the same time
- Buyers determine the purchase price
- Auctions eliminate long negotiation periods
- Auctions reduce time to purchase property
- Purchasing and closing dates are known
- Buyers know they are competing fairly and on the same terms as all other buyers
- Buyers receive comprehensive information on property via due diligence packet
