SPEED OF THE PROCESS - Once a seller has agreed to auction a property, a date is set for the auction from 3 to 6 weeks out. Sellers may avoid long listing periods and abate the holding costs that may accrue during the time a property is on the market.
PROPERTY IS SOLD WITH NO CONTINGENCIES - Most properties sold at auction are sold in “as is, where is” condition. Potential buyers are given ample time to inspect properties prior to the auction. Seller does not have to worry about contingencies holding up the closing process, including financing contingencies. Home or builder warranties may or may not apply as per Sellers instructions.
SELLERS KNOW EXACTLY WHEN THEIR PROPERTY WILL SELL - As mentioned, sellers may avoid the long listing periods that may occur with other methods of real estate sales, especially when the real estate market is slow. Additionally, they avoid unscheduled and interruptive showings. The Auction Company will schedule one to three property previews prior to the auction.
COMPREHENSIVE MARKETING - With auctions, the average real estate sales process is compressed into 3-4 weeks. This allows us to put together a blitz marketing campaign that can save money for sellers, because each marketing dollar has a greater impact. We not only compress the marketing process, we implement a far more aggressive marketing campaign than most other sales methods.
LOWER HOLDING COST - The timely sale of properties at auction reduces long-term carrying cost, including taxes, insurance, maintenance and liabilities that can accrue with other real estate sales methods.
UNLIMITED PRICE CEILING - Competition among bidders is what sets auctions apart from other sales methods. Auctions are one of the only sales methods where buyers keep raising the bid, contrasted with other sales methods where buyers try to negotiate the asking price down.
LIMITED NEGOTIATIONS - Competitive bidding takes the seller out of the negotiation process. The bidders negotiate with each other until the high bidder is revealed. At that point, the real estate purchase and sale agreement is signed and the closing date is set with the title company.