BENEFITS TO THE SELLER: from Realtor.org
- Buyers come prepared to buy
- 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
1. Expediency: Most auctions will only be a 60-90 day process. That quick clearance includes time from listing to closing. As a seller you will not have to spend a long term carrying costs for their property while waiting for someone to make an offer.
2. Sellers: As a seller you will have multiple buyers/offers on hand at the same time! You will be in control of the selling process.
3. Acceleration: As a seller you will not have to wait on the potential buyer to procure a loan or appraisal. Buyers know “at auction” that their bids are not contingent upon financing, so they are prepared and pre-qualified.
4. Fair market value: Auctions are recognized as the most efficient method to establish the fair market value in a capitalist economy today.
5. Marketing: Auctions can aggressively market to a specific target audience, that increases interest and is not endless, continuing on for eternity, but for a specific time period.
6. Under pricing: Auctions are the best way to avoid under pricing. The price is always negotiated upwards, not down!
7. Condition: Properties are sold “as-is”.
8. Mediation: Auctions are the best way to mediate a sale with multiple sellers.
9. Seller perks:
The seller can witness the sale of his property, either in
person or by online viewing.
The seller can pick the sale date and closing date.
Seller is not subject to multiple “showings” if the subject property is their home. Generally, one open house is held for potential buyers to view the property.
Seller has the assurance that their property will be sold!
Seller is not involved in a long negotiation process.
10. Competition: Auctions force competition between buyers providing the impetus to get them “off the fence”. An auction price may exceed the price of a negotiated sale.