Why Sell at Auction

REASON #1:

It’s a Quick Sale. You Pick the Day it Will Sell!

A Real Estate auction affords property owners the opportunity to sell property now at today’s prices, rather than waiting years to sell. Time is money.

REASON #2:

Real Estate Commissions

Seller pays no Real Estate commissions when a buyers premium is used.

REASON #3:

High Carrying Costs are Avoided

Debt service, real estate taxes, insurance payments, maintenance and sometimes security are very costly to the seller! The sooner a property sells, the greater the bottom line will be for the seller.

REASON #4:

Auction Receives Maximum Market Place Exposure

Acerra & Proulx Real Estate Auctioneers company employs public relations and marketing firms to saturate national and local markets during a 4-6 week period prior to the auction event.

REASON #5:

True Property Market Value can be Demonstrated

When you choose the right auction company more competitive bidders will bid on the property, therefore giving the seller an opportunity to receive top dollar for the property. The selling price is truly market driven.

REASON #6:

Auctions Freeze the Market

Every current buyer in the market place will be very motivated to investigate the property being auctioned. The market is then frozen. The opportunity the auction brings forces buyers to at least wait until the auction is held.

Types of Auction

FIRST is the Absolute Auction without Reservation. In this type of auction the seller is legally required to sell the property at the auction regardless of the final high bid price. The main advantage of an absolute auction is that it generates maximum response from the marketplace. Since a sale is guaranteed regardless of the price, buyer excitement and participation are heightened. That’s the paradox with auctions: the lure of low prices, or possible low prices creates more competitive bidding. The main disadvantage is the real estate is sold irrespective of the owner’s price requirements.

SECOND is the Auction with Reservation. The seller reserves the right to reject the final bid price. The chief advantage of this type auction is the seller isn’t obligated to accept a price that’s entirely unacceptable.

THIRD is the Minimum Bid Auction. Here, the owners must sell at or above a stated minimum bid. The chief advantage of this type of auction is that it creates the safety net the sellers lack in the absolute auction. However, it may limit interest in the auction only to those buyers who are willing to pay the minimum bid price making it difficult to generate the proper excitement level for higher bids.

Security of Auctions

Failure to close can happen, however not often. If the failure to close occurs, a seller may be in a better position than someone facing a collapsed close with the private negotiated method. The auction seller can turn to the next highest bidders, who demonstrated their willingness to pay nearly as much as the buyer who failed to close.

Real Estate Auction Marketing Advantages

Seller Benefits

  • Seller pays no Real Estate Commissions when a buyers premium is used.
  • A seller can choose what day and time the property will sell.
  • Creates competition among buyers - auction price can exceed the price of a negotiated sale. An auction generates excitement and heightens buyer interest.
  • Property is sold as is, where is and how is without contingencies or warranties.
  • Exposes the property to a large number of pre-qualified prospects.
  • Accelerates sales - the property can sometimes be sold within three weeks of listing.
  • Eliminates high seller carrying costs - (such as interest, taxes, insurance & maintenance fees).
  • Auction brings interested buyers to a point of decision - they must act now or lose an opportunity to purchase.
  • Auction is a true market forum - the highest buyer pays the lowest price a seller will accept.
  • A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction (depending on auction type), and actively participates in the sale process.
  • Auction reduces the time the property is on the market. Auction eliminates numerous and unscheduled showings.
  • Auction takes the seller out of the negotiation process.
  • Auction is an aggressive, advanced marketing program that increases potential interest in an awareness of a property.
  • Seller is able to obtain liquidity.
  • Seller is able to move on to other investments and free up capital.
  • By far the best way to sell Real Estate today!!