The seller gets to determine the date and time at which the property will be sold. Using the auction method, property can typically be marketed and sold within a shorter time frame.
An established sale date creates an urgency to buy. Buyers must arrange financing and be prepared to bid. This in turn equates to reduced holding costs in terms of taxes, insurance, maintenance, and a greater future time value of the seller’s money.
The seller can set the terms of the auction, thereby avoiding lengthy negotiations of price and terms, particularly for a seller wishing to establish a 10-31 exchange.
A time-specific sale creates a sense of urgency on behalf of the buyer to be prepared to bid in a spirited and competitive atmosphere. This format creates confidence among the buyers when they see other parties willing to pay similar amounts for the property.
Generally eliminates prospects who are unable to purchase the property financially. Thus eliminating precious time in marketing the property due to the prospective buyer signing contract contingencies that may not be fulfillable.
There are no established ceiling prices set on a property.
Historically, when the market is in the upswing, public auctions have established the highest prices. In a declining market, an auction will capture the current market value before the property depreciates further.
When a property is marketed and exposed properly, an auction is the only way to determine the true current value of a property. An advertising program is tailored to the sellers’ property which will attract the largest number of potential buyers. This insures a “true market value” for the property.
The auction method has unlimited potential in selling all kinds of property based on realistic seller expectations.
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