Question #3



Why would I sell my Real Estate at Auction?


 

The answer is easier than you may think.

Only via auction can the seller control the time, place and most importantly the terms under which the property is sold.

Only at auction can a sale price actually exceed expectation.

  • First, there is Time. Very often it is the money you fail to lose that is the difference. The longer a property sits on market, the more it has cost to carry and the more is lost in value perception. Meanwhile, that capital tied up in the asset is not at work for you elsewhere.
  • Secondly, there are no contingencies. An auction contract is a non-contingent sale and therefore has a greater certainty of closing. As property is sold as is, where is, with all faults, there is often less pressure to invest in a property to make it marketable and there are no surprises or demands at settlement.
  • Only via open competitive bidding can True Price Discovery take place.

In any real estate transaction, Time is of the Essence.
In a falling market, time on the market can be a serious value issue.
In a rising market, it can equate to money left on the table.
Auction will leave nothing on the table.

If your neigbors Real Estate sold in a week, its price was probably too low, and they will never know what it actually could have brought.

Of course, getting the most money is important to both you & your auctioneer.
But you can't sell a property through a traditional listing and the auction process at the same time, so you need to look at other information to help make the choice.

Information such as "is the property currently being gainfully used by you at this time"? Are you committed to selling or just testing the market?

As Auctioneers, we are committed to selling, not just trying to sell.

Another reason that you may choose auction is that you are acting as a fiduciary, selling the property for an estate, a family member or a friend and/or you do not live close to the property. You are concerned about having the property on the market for an indefinite period of time while it sits vacant. In many like situations, the risk of list & wait is greater than any risk inherent to auction.

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