Myth 4 – The only reason people have an auction is because someone died or the seller is in financial distress.
There are a number of reasons why people choose to have a real estate auction. in fact some of the most common reasons have little to do with the sellers financial situation or the settlement of an estate.
Some of the most common benefits include:
1. Negotiations eliminated – Because price is determined with competitive bidding, there is no back and forth negotiating that can sometimes lead to a property not selling after considerable time has been invested.
2. Increased property exposure – Auctions require an aggressive approach to marketing because of a defined time of sale. A professional real estate auction company will be masters of marketing, to ensure a successful event.
3. Accelerated and time defined sale – Sellers love to know when their property will sell. With an auction, the date is set and the marketing begins. Marketing is usually done in 30 days with another 30 days to close. Knowing when your property will sell and close gives you an advantage when making important financial decisions.
4. No contingencies – The auction method of marketing allows to the seller to sell the property in it’s current condition, with full sellers disclosure. This allows for buyers to adjust their price in accordance with any repairs or work that needs to be done, while giving the seller the benefits of a guaranteed sale without contingency upon repairs or financing. All of the due diligence is done prior to auction day.
Time has become a valuable resource in our current society. This has created more demand for sale methods that appreciate the value of time. While real estate auctions have been historically linked to times of depression and used as a last resort, we are seeing more and more sellers choosing the benefits of a time defined auction sale as a FIRST CHOICE!