AUCTIONS WORK

Although commonly misunderstood, professionally run auctions have become a substitute to traditional brokerage. WHY? The reason is simple; auctions work. They often bring a higher net sale price and are time-defined. The seller knows when the property will sell.

HIGH EXPOSURE TO PROSPECTS

Auctions incorporate multi-colored brochures, postcards, print ads, detailed web sites, eye-catching signs, and other unique public relations techniques to create a marketing package that normal brokerage cannot rival. This is all done with high intensity with the goal of saturating the market of target prospects.

HIGHER NET SALES PRICE

 When listing a property with a traditional broker, the listing price is set at a price that is more than the owner expects to receive. This generates offers from buyers that are below the listed price, and drives the price down. This results in protracted negotiations, which in the end, drive the price down. OR, the property is listed at a low price and sells quickly, but the seller does not realize the maximum economic benefit from his property.

Auctions create economic benefit by bringing numerous bidders together at the same time to compete against each other for the property. This drives the price up, often over market value.

QUALIFIED BUYERS

Auctions virtually eliminate the non-serious prospect. Buyers of real property must post acashier’s check with the auctioneer, prior to bidding. This deposit becomes non-refundable upon winning the bid, and reassures the seller that the buyer is serious and has the ability to secure financing for the property.

URGENCY CREATED

Buyer prospects can no longer drag their feet on negotiating the price, securing financing, or thinking about the property. Auction is time-defined. With the property set to sell on a specific day, at a specific time, buyers know they must act decisively, or lose the opportunity, to buy the property. This urgency, creates momentum, which can cause buyers to bid above their original self-imposed limitations.