Real Estate Auctions

Real estate auctions have recently gained popularity in Canada, although they are common in the United States and especially in Australia. As auctions gain popularity, more and more people are realizing that they can be a viable alternative: often superior to regionally used negotiated sales methods. Keeping idle property costs you money. Interest-carrying charges, taxes, and other expenses increase as you keep a property longer before you sell it.

The Basics & Benefits

What is a Real Estate Auction?

Selling real estate through an auction is an innovative and effective method. Through open-cry, competitive bidding, it involves the public sale of any property – including those that are not distressed – in a highly intense, accelerated real estate marketing process.

ADVANTAGES FOR THE SELLER, BUYER, AND REALTOR

Real estate auctions are a win-win-win situation.

ADVANTAGES FOR THE SELLER:

  • When buyers arrive, they are eager to buy
  • Taxes, maintenance, and taxes are reduced by quick disposal
  • Assurance that the property will be sold for its true market value
  • Provides a wide range of pre-qualified prospects with access to the property
  • Increases the speed of the sale
  • Auctions create competition among buyers – auction prices can be higher than negotiated prices
  • Ensures that prospective buyers are pre-qualified for financing
  • There is no doubt in the seller’s mind when the property will sell
  • Ensures that there are no unscheduled showings
  • Removes the seller from the negotiation process
  • Increases interest and visibility through an aggressive marketing program

ADVANTAGES FOR THE BUYER:

  • Competitive bidding allows investors to make smart investments because properties are usually purchased for fair market value
  • Buyers know the seller is committed to selling
  • A multi-property auction allows the buyer to see many properties at the same time
  • Purchase prices are determined by buyers
  • Long negotiation periods are eliminated with auctions
  • Real estate auctions reduce the time it takes to purchase a property
  • Dates for closing and purchasing are known
  • All buyers know they are competing fairly and on the same terms

ADVANTAGES FOR THE REALTOR:

  • Creates a list of qualified buyers who are ready to buy
  • Provides new options for selling and purchasing to clients and customers
  • Increases market share and revenue
  • Creates a niche market for yourself
  • A guarantee that the property will be sold at its true market value
  • In most cases, the property is sold within a short period of time
  • Promotes the property to a large number of potential buyers
  • When you hold an auction, people look at all your listings, not just the auction listing alone
  • Referrals and return business results from successful auctions
  • As a referring agent/broker, cooperating agent/broker, or listing agent/broker, agents can earn commissions

Ron is available for real estate consultations by clicking through to our Contact page.

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