How Sellers Benefit From Real Estate Auctions?

Posted by jason michalak on October 21st, 2016

Selling a property by private sale or auction (Physical, online) has been a topic of high significance in thereal estate industry. There are some who prefer a private sale, but a lot of others consider auctions as the way to sell a property at the highest possible price. We would direct our focus on real estate auctions and will be discussing their benefits along with tips for successful auctions.

The first step of the process is selecting an auctioneer. If we speak about online auctions, in particular, it would be hard to undermine the role of auctioneers in the success of a property sale. It is the reputation of an auctioneer that makes bidders show up and register their bids for acquiring a property. You need to have a few options in hand, so that you can do your research and choose an auctioneer based on the findings. The best auctioneer will have strategies to help you maximize the price of your property. It is best to choose people who have a proven track record and have been involved in global real estate auctions.

An important factor for success in a real estate auction is to have a refined and accelerated marketingplan. This marketing plan is customized to fit the seller's needs and focuses on an audience best suited for the property in question. And as there is short lead-time in auctions, the plan has to be highly targeted, comprehensive, and intense.

Unlike a private sale, auction brings a sense of urgency to the entire property selling process; as a result, buyers have to make immediate calls. The setting of an "end date" takes the delays out of the process and makes potential buyers make quick and informed decisions. With competition amongst buyers, the selling price of a property often goes beyond its market value. It all adds up and plays into the hands of sellers.

As a price is reserved for the sale of a property, the seller can rest assured that his/her asset will not be sold for anything less than that. Unless the bidding reaches the pre-set level, the property will remain in the hands of the seller.

There are set terms at auctions, which everyone involved in the sale of a property has to abide by. Both the sellers and buyers are bound by certain terms, which are brought into the mix to make the process beneficial to both the parties.​​​​​​​