Auctions are an excellent way to Sell and to Buy real estate. Auctions tend to create a sense of urgency (because the opportunity time is limited) for potential buyers and a definite sale date for sellers. Many times auctions are more successful in selling property because of the excitement they create and the assurance of a set closing date. The auction process is thousands of years old. The oldest form of property acquisition is the barter system. After the advent of currency, came the auction.
In a typical real estate process, a Broker (by signing a listing agreement with the seller) will list a property, place a sign on it, market it on the internet and in various publications, at a published price and wait for a buyer to appear. The property may sell in a day, month or a year. Furthermore, the buyer will negotiate the price down from the published listed price. When a property is listed in the typical real estate method the published listed price creates a price ceiling. For properties that qualify, the auction process removes this ceiling.
Consider the auction: You hire a Real Estate* Auctioneer, the auction date is set (usually 30-60 days out). The Auctioneer handles the target marketing, auction set-up, performing the auction, handling the documents and closing. Many times an auction sign brings the neighbors calling, offering to buy it before an auction occurs, fearful that the price will go up and they will face competition! The advantage of not having a price advertised, as in a typical real estate listing, is that a purchase price ceiling is not created. The auction date arrives and the auction begins. When the auctioneer’s gavel comes down, the property is sold to the highest bidder and a definite closing date is set. The buyer knows exactly what they have bought and for how much and the seller knows exactly when the closing date will be and how much the property brought.
The auction process will determine the real value for a property on a given day, which is what a buyer is willing to pay…on auction day. Although not all property is an auction candidate, those that are allow both buyers and sellers to accomplish their goals. Both the buyer and the seller recognize the importance of the present value of money.
Land Tycoons has Auctioneers that are recognized and belong to different Auctioneer Associations. They are qualified & licensed Real Estate Brokers and Auctioneers. Contact them today!
*In order to sell real estate, the Auctioneer must either be a licensed Real Estate Broker or hire someone with a real estate license to participate in the sale.