What is a Real Estate Auction?
The auction method of sale provides sellers with the greatest opportunity to obtain 'fair market value' or a premium price for their property. An auction campaign adds structure to the property listing and sales process and is regarded as the most effective way of marketing a property for sale. Should an auction listing not sell during the auction program, the chances to sell the property soon after are dramatically increased due to the increased amount of buyer enquiry that is generated through marketing for sale by auction.
How will auction benefit me?
The real estate auction is a win-win proposition for everyone involved.
In addition to the benefits of being an 'exclusive agency', auctions have many other advantages.
Tips to buying at auction:
- Do your homework
- Know the terms
- Understand the process
- Ask your agent for a list of comparable sales
- Have a fighting fund
- Have a buyer strategy meeting with the Agent/Auctioneer
BENEFITS TO THE SELLER:
- Buyers come prepared to buy
- 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
- 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