Selling Real Estate by Auction -
The Auction Method: Is it Suitable for You?
- Do You have a strong Motivation to sell your property?
- Do You want to obtain the Maximum Price and the Best Terms for your property?
- Are you ready for a Non-Contingent Contract? (no conditions)
- Would you like a very good chance of selling and closing your property on
a set date?
- Are you willing to accept what todays market will produce for your property?
A YES answer to any of these questions means:
The Auction Method may be Suitable for You !
TYPES OF REAL ESTATE AUCTIONS
ABSOLUTE AUCTION
In this type of auction, the seller is legally required to sell the property at the auction regardless of the final bid price. The main advantage of an absolute auction is that it generates maximum response from the market. Since a sale is guaranteed, regardless of the price, buyer excitement and participation are heightened. As a result, the price of the real estate can be maximized.
The main disadvantage is the lack of a safety net for the seller. The real estate is sold irrespective of the owners price requirements. If a bidder bids one dollar on a million-dollar shopping centre and no one else bids, the centre sells for one dollar. This is often a soul-searching proposition for even the most adventurous seller.
AUCTION WITH RESERVATION
The seller reserves the right to reject the final bid price. The chief advantage of this type of auction is that the seller is not obligated to accept a price other than the one that is entirely acceptable.
The main drawback of such an auction is obvious. Many prospective buyers don't want to invest the time and expense of investigating a property when they have no certainty that they will get the property even if they are the highest bidder.
There are many different combinations of selling your Real Estate at Auction, we can help you decide which method will work best for you. Please contact us for further information on selling your Real Estate by the worlds fastest growing method - Auction!
