The Auction Method
Auctions are an increasingly popular method to buy and sell real estate. It can be extremely effective in the right situation; auctions can help sellers maximize their proceeds in a finite time period and can provide buyers an effective way of acquiring properties.
An auction may bring to mind images of a fast-talking auctioneer standing in front of a crowd of people calling out numbers - but auctions can be much more than this.
Think of an auction as an accelerated marketing campaign, completed in a short and intense period of time. In addition to listing the property on the MLS like a traditional listing, an auction campaign also can include additional marketing such as custom signage, direct mail, targeted email blasts, submission to paid auction and real estate websites, and social media promotion. A substantial amount of time and effort is expended by the auctioneer during an auction marketing campaign to reach a wide network of prospective buyers.
Benefits of Auctions for Sellers
There are many potential benefits for a seller in using an auction to sell their property.
- Creates competition among buyers
- Accelerated marketing program increases buyer interest and awareness of the property
- Exposes the property to a large number of pre-qualified prospects
- Requires that potential buyers pre-qualify for loans
- Property sold “as is” without contingencies
- Eliminates high seller carrying costs (utilities, maintenance, etc.)
- Accelerates the sale; the property can be sold within 15-45 days of listing
- Can elicit pre-auction offers on the property
- Reduces the time property is on the market
- Seller knows exactly when the property will sell
- Brings interested buyers to a point of decision where they must act now or lose the opportunity to purchase
- Seller sets the terms and conditions of the sale and maintains control of the property
An effective auction will bring multiple interested buyers together at one time and force them to compete against each other. Because of the competitive nature of an auction, the price achieved may exceed what a seller may have received for their property with a traditional listing.
The auction itself may be a traditional live auction or it may be an online-only auction -- or it could be a combination of both (i.e., simulcast). As your agent and auctioneer working exclusively for you, they will help you evaluate your property and situation and determine the best strategy for your property.
An auction is a faster and simplified way to sell real estate compared to a traditional listing. A typical auction campaign lasts from 4-6 weeks, at the end of the auction you should have a buyer, a signed contract, and a target closing date.
Also unlike a traditional listing where you receive offers with contingencies such as financing, inspections, etc., the contract the buyer signs after the auction is generally a non-contingent offer. There are usually no financing or inspection contingencies for the buyer after an auction and no endless negotiations.
An auction is an excellent choice if you wish to sell your property quickly or you wish to simplify the selling process.
Contact us at info@OneDayReo.com to discuss selling your property at one of our upcoming auctions.
Or call us at:
- New Jersey Auctions – 732-630-6630
- New York Auctions – 646-663-6630
- Pennsylvania Auctions – 215-999-6630