3 Points to Keep in Mind about Real Estate Auction

[Mike Lyon]

While most people may think of an auction as a last resort to sell real estate, this mode of selling is becoming vastly popular all over the world. Regardless of whether you have to sell distressed property or a perfectly healthy property with an income, a real estate auction can speed up the process for you, without creating any of the barriers that conventional methods of real estate have.

Let’s take a look at some of the most important reasons to consider an auction for your real estate, whether it be commercial, residential, vacant land, industrial, apartment, hotel, or office.

• 1.Only Qualified Buyers Make it to the Bidding Room

Before conducting an auction, a professional real estate auction company will require bidders to complete their due diligence and have proof of funds. What this does is allow only the most qualified and serious buyers into the bidding arena. While some may think that this limits the number of potential buyers, qualifying buyers only increases the chances of a successful closing at the end of auction.

• 2.Auctions Help Owners Realize True Market Value

It is not a new concept for property owners to think that their asset is worth much more than it really is. Whereas, some may think that it is worth far less than it’s true worth. The beauty of auction allows owners to realize the true market value of their asset. Since auctions can be conducted with a reserve price, which is the minimum amount at which the seller will release the property, the risk factor involved in selling real estate via auction is minimized.

• 3.Auctions work as well for healthy properties as they do for distressed ones

Properties at auction may often be sold for more than what they are worth in the conventional market. The competitive nature of auction pushes bidders to fight for an asset, often resulting in spending more than what they initially had in mind. However, the transaction is still worth it for both buyer and seller because closing usually occurs within 45-60 days from the day of sale, which means that both parties don’t have to waste months even after the transaction has occurred.

So the next time you’re considering selling your property, give real estate auction a thought to see how it can help you achieve your goals within the least possible time.