Question #4



What advantage does Auction have over Brokered
or Private Treaty Transactions?


 

Regardless whether you are selling an antique, an automoblie or Real Estate,
the elements are the same. Are you committed to selling?

As illustrated above, the advantages are different for different sellers,
but generally think of it this way.

There are 3 elements to any sale.
1. The price you get.
2. The time it takes to sell it.
3. The terms of the sale.

In a traditional listing or private treaty you control NONE of these.

You can't predict how long it will take to sell or what conditions will be in the offer. You feel like you control price, but you really only control the right to say no and then keep the property.

As Brokers as well as Auctioneers, we know from experience that the buyer always decides the price. You merely accept or reject it.

In an auction, you control both the time and terms. Price can be controlled by reserve to the same extent seen in the traditional listing with the seller's ability to say no and refuse to sell. 

The fundamental difference with auction is that you are going to employ an aggressive marketing campaign and defined time table to generate the highest degree of interest and use the competition and the professional skills of the master auctioneer to drive the offer to its highest level.

Will I get a good price?

In our recent economic times, this has become a moving target. I have heard it said that today pricing anything is like trying to catch a falling knife.

The truth is that whether you offer your property at auction or by traditional "price & defend", the buyers are the ones who are spending the money and therefore controls the price. In both cases you have the right to refuse any offer, but you can't spend the buyers' money for them.

In this market, the decision to auction or not to auction should depend on criteria other than price.

In the strongest of markets, auction can be counted upon to produce strong pricing as well as timely transactions.

Afterall, isn't a bidding war what every seller wants?

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