Real Estate Auctions: The Basics & Benefits
Looking for information about real estate auctions?1. What is a Real Estate Auction?
How will auction benefit me?Benefits to the Seller, Buyer, and Real Estate Agent/Broker
2. Types of Auctions
Absolute AuctionAn auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve. Typically, no-reserve or absolute auctions receive higher final bids. This is partly due to the larger total number of bidders the property attracts. For a buyer, a high number of bidders makes a property seem more desirable.
Reserve Auction
An auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer.
Q. What is a Real Estate Auction?
A. A real estate auction is an innovative and effective method of selling real estate. It is an intense. accelerated real estate marketing process that involves the public sale of any property – most certainly including those that are nondistressed – through open cry, competitive bidding.Q. How will auction benefit me?
A. The real estate auction is a win-win proposition for everyone involved.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
• In multi-property auctions the buyer sees many offerings in the same place at the same time
• 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
• Buyers receive comprehensive information on property a due diligence packet