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 SELLER:
• Buyers come prepared to buy• Quick sale reduces long-term carrying costs. including taxes & maintenance
• Assurance that property will be sold at true market value
• Exposes the property to a large number of pre-qualified prospects
• Accelerates the sale
• Creates competition among buyers
• Requires potential buyers to pre-qualify for financing
• The seller knows exactly when the property will sell
• Eliminates numerous and unscheduled showings
• Takes the seller out of the negotiation process
• Ensures an aggressive marketing program that increases interest and visibility
• Properties are sold free and clear of liens. Seller pays for title insurance