Why Real Estate at Auction?
Contrary to public opinion, real estate auctions offer selling conditions that are sometimes better than traditional real estate sales methods. Real estate auctions, in the United States, are on the rise. Banks, lawyers, and property owners are discovering that real estate auctions are a sound option and an avenue to profitability.
Real estate auctions are effective and have advantages. They are an option that is worthy of your consideration.
The following are some advantages of real estate auctions:
• Quicker sale of real estate
• Eliminates high carrying cost for long periods of time (taxes, insurance, maintenance)
• Attracts the attention of buyers who compete for purchase
• Has pre-qualified buyers as real prospects
• Convenience of a complete package for the real estate and the personal property
Real estate auctions create excitement because they bring together all of the potential buyers of a property, encouraging direct competition among buyers. Carefully planned promotions attract the necessary qualified buyers well in advance of the auction date.
We pride ourselves on professionalism throughout the sale and it shows through our record of successful real estate auctions. If you are interested in this auction service, we would appreciate the chance to talk with you.
Real Estate Auctions Have a High Exposure Sales Approach
• An advertising campaign is conducted for each property
• Quality brochures are distributed to a broad range of real estate purchasers
• Media is used to promote the property - including newspapers, television, radio, magazines, direct mail and video
• Encourages Realtor® participation
Real Estate Auctions Produce Buyers in 30 days or less
• Once the promotion begins, the auction sale takes place in three to four weeks
• Usually auction promotions generate a sale prior to auction day
• Auction avoids drawn-out negotiations and unnecessary contingencies because terms and conditions are preset by the seller
Real Estate Auctions Create Buyer Competition
• The auction process encourages multiple buyers to compete to purchase your property
• Competition generates excitement and motivates buyers
• Competitive bidding often draws prices higher than the seller's expectations
Real Estate Auctions Provide Good Buyer Candidates
• High demand, broad interest properties where competition between buyers would increase price
• Property a seller desires to convert to cash quickly
• Properties owned by seller who has purchased second property using a bridge loan or who has signed a contract for property "subject to the sale of existing property"
• Estate and surplus properties
• Inactive real estate listing needing a fresh marketing approach
What Auction Systems can offer YOU
• Experience in real estate auctions
• Focused marketing campaign
• Direct mail marketing
• Newspaper, magazine and other print advertising
• Internet and e-mail promotion of property
• Information packet on each property for interested buyers
We pride ourselves on professionalism throughout the sale and it shows through our record of successful real estate auctions. If you are interested in real estate auction service, we would appreciate the chance to talk with you.
Here are some frequently asked questions about real estate auctions:
Q. What is a Real Estate Auction?
A. A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property -- most certainly including those that are non-distressed -- through open cry, competitive bidding.
Q. How will auction benefit me?
A. The real estate auction is a win-win proposition for everyone involved.
BENEFITS TO THE REAL ESTATE AUCTION SELLER:
• 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
BENEFITS TO THE REAL ESTATE AUCTION 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
BENEFITS TO THE REAL ESTATE AUCTION REALTOR®:
• Generates a list of ready, qualified buyers
• Offers clients and customers new selling and purchasing options
• Increases revenue and market share
• Develops your own market niche
• Assurance that property will be sold at true market value
• Property is sold within a relatively short period of time
• Exposes the property to many potential purchasers
• Auctions bring people in to look at all your listings, not just the auction listing
• Successful auctions result in referrals and return business
• Agents can earn commissions as referring agent/broker, cooperating agent/broker, or as the listing agent/broker
What Properties are Suited for a Real Estate Auction? Ever wonder how you can tell if a property is well suited to auction? Think of your listing, then take the Two-Thirds Rule test!
Q. What properties are suitable for Real Estate Auction?
A. Most properties are salable by auction. All types of real estate, including residential property (e.g., town homes, condominiums, cooperative apartments and single-family homes), commercial and industrial property, vacant land and even boat slips are sold at auction. Not all property, however, is suited for auction. If a property will only appeal to a narrow market, auction may not be the most effective marketing method.
A Real Estate Auction Self-Test:
One method to determine if auction is the best marketing strategy is the Two-Thirds Rule. This involves analysis of the market, property and seller situation. Generally, if two of the three parts (market, seller, property) lean towards auction, then auction should be offered to the seller as a sales option.
Market Real Estate Auction Self Test for Buyers -- A good auction situation is one where the market is:
• A changing market
• A dull market; too much product but buyer interest is expressed
• Not enough of the property type (unique, lake front, etc.)
• An emerging market -- new developments could kick off a sales program, once some of the properties were auctioned
• A seller's market where there is known high demand and a lot of competition can take place
Real Estate Auction Self Test for Sellers -- A good auction situation is one where the seller:
• Needs immediate cash
• Has a partnership or marriage break-up
• Is moving out of the state
• Wants to liquidate an estate
• Is retiring
• Is an auction-minded seller
• Has a listing that is about to expire
• Has already purchased another house
• Knows the auction will bring a fair market price
• Has financial problems
• Has high carrying costs on the property
Real Estate Auction Self Test for Property -- A good auction property is one that:
• Has a lot of equity (25 percent or more)
• Is unique -- there is enough buyer/market interest to encourage competition (unique properties are difficult to appraise)
• Has a lot of high carrying costs for the owner
• Is vacant -- vacant properties may encourage vandalism
• Is difficult to appraise
For more information about Auction Systems real estate auctions, property auctions, house auctions, and home auctions for realtors, sellers and buyers, please contact us online or call 800-801-8880 today.
Auction Systems Auctioneers & Appraisers, Inc. is licensed by the State of Arizona Department of Real Estate - Teresa Klein, Broker.