|What are the advantages of selling real estate at auction?
|When you sell real estate at auction, you, the seller, dictate the terms of the sale. This is contrasted by traditional brokerage where the buyer dictates the terms. Here are some advantages:
|You sell your property on your time schedule, not the buyer’s. Previewing times are scheduled by you at your convenience, thus eliminating numerous and unscheduled showings. Auction marketing of real estate in our present real estate market requires only 1 to 2 weeks. So 1 to 2 weeks after you sign your Listing Agreement, you will have your auction. Closing is then within 15 to 45 days of the auction. What this means to you is that you can plan your future more effectively and confidently and the relatively quick process will reduce your holding costs including taxes and maintenance.
|Real estate auction sales can be “as-is, where-is”. What this means to you is no more delays because an inspector found something wrong with the house – no more disputes over condition of systems or other issues. The buyer purchases the property as they see it and as it is or if you choose, you can purchase a warranty for your property (usually about $300 – $400) transferable to the buyer. This eliminates the need for buyers to have property inspections done and makes your property more attractive to buyers.
|Real estate auction contracts generally have no financing contingencies. What this means to you is you have far greater certainty of closing on an auction purchase contract than a conventional contract. The Buyers come prepared to buy.
|At auction, you sell your property at the highest bid acceptable to you. You do not have to evaluate whether you left money on the table. The auction creates a competitive bidding environment. What this means to you is that you’ll have knowledge of what the market is willing to pay for your property, enabling you to make your decision to sell with certainty and confidence. The process of gathering all interested parties in one place at the same time gives you the best opportunity to obtain the highest possible price.
|How will my property be marketed?
|A key advantage of auctioning real estate is the benefits of customized advertising and marketing programs. Auction marketing typically consists of print advertisements, targeted direct mail, fax marketing, e-mail marketing, property signs, and web listings on www.RealtyAuction.ca and of course www.realtor.ca, the most successful real estate website in the world. We have marketing professionals producing all advertisements and marketing material, with an eye toward highlighting your property’s strongest features. What this means to you is that your property is exposed to the largest number of pre-qualified prospects, thereby increasing your possibilities of a successful sale at the highest possible price. In an auction marketing campaign, your property will generally be the ONLY choice in a given category or neighborhood… not one of many listings from which a buyer may choose. In an area where multiple homes or other properties have for sale signs in the yards, the property with the AUCTION sign will garner most of the attention.
|How often is an Auction successful in selling property?
|Auctions historically sell approximately 85% of property listed. And for institutional sellers, estates and trustees, this percentage is historically above 90%. Rarely does an auction purchase contract fail to proceed to closing. This contrasts with traditional real estate listing contracts, which historically have far lower success rates. And because of the absence of contingencies in a typical real estate auction contract, auction sales are more likely to close than traditional real estate contracts. What this means to you is a greater certainty of selling your property via a real estate auction listing than via a traditional real estate listing. We will only take on your real estate auction if we feel you will have a successful sale, because of this, we are proud that we have achieved a 99% success rate.
|What makes a good auction seller?
|A good auction seller is a seller who is motivated to sell his or her property and is ready, willing and able to accept the highest bid for his or her property. Remember, the goal of a well-executed auction is to provide the highest possible sale price for your property in the shortest possible time period.