Auction Listings
WHAT IS A REAL ESTATE AUCTION?
A real estate auction is an innovative and effective method of selling real estate. It is an intense and accelerated real estate marketing process that involves the public sale of property through open and competitive bidding.
A real estate auction is an effective way to achieve a sale in a specified time frame.
Although real estate auctions were typically regarded as a sales method of last resort for residential properties in distress, auctions can be beneficial for many types of real estate, including:
- New-home construction
- Luxury and vacation homes
- Agricultural land (farms, ranches, and orchards)
- Commercial real estate (shopping centers, apartment buildings, nursing homes)
Auctions can be an effective marketing tool in both strong and soft real estate markets.
Benefits of Real Estate Auctions
As a marketing strategy, the real estate auction provides a distinct array of benefits and advantages.
Required Listing Form for Auction LIstings:
Benefits to the Seller
- High seller holding costs are eliminated.
- The seller sets the terms and conditions.
- The seller can be assured that the property will be sold at true market value.
- The seller knows when the property is expected to sell.
- The time to market is reduced.
- The requirement to have numerous open houses and property showings is reduced.
- The property is exposed to a large number of pre-qualified buyers.
- An auction creates competition among buyers.
- Buyers make a firm decision about the property.
Benefits to the Buyer
- The seller is motivated to sell.
- An auction reduces the time to purchase property, including negotiations.
- There are no contingencies because the terms are known.
- The buyer may receive favorable financing.
- Buying real estate at auction is an exciting method of purchase for many.
- Buyers compete fairly and on the same terms as other buyers.
- Buyers—not sellers, agents, or appraisers—determine the property’s true market value.
Benefits to the Real Estate Agent
- Real estate agents can earn commissions by working with auction firms.
- Real estate agents can expand the services they offer to sellers and buyers.
- Real estate agents can supplement their current business by representing clients at real estate auctions; real estate agents also can develop a new market niche.
- A real estate auction can expose a property to many qualified buyers.
- Properties advertised through auction are sold within a relatively short period of time.
- Successful auctions can generate referrals and repeat business.
Comparing MLS Approved Auctions
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Minimum Bid (AuctionMIN) |
Non-Disclosed Reserve (AuctionNDR) |
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