There are many circumstances that are tailor-made for a real estate sale, but most, if not all, would fall under the “time is of the essence” category. Get more info on The Realty Medics.
Property A is sold, and the buyer purchases Property B on the basis of this deal. Now selling A creates issues in escrow and the transaction can not close. The client is now in a state of hysteria, since his only hope of closing in 60 days on Property B is by closing on Property A. What are you doing? Auction Property A and set a selling date well in advance of the closing date on Property B, stipulating that part of the real estate auction terms and conditions is a swift closing. This can only be done through an auction on immovable land.
One type of situation that dictates a real estate auction ‘s advantage is the high rate of divorce and the need to dispose of the real estate quickly. Often, as a husband and wife, neither party can afford to hold a property they previously owned.
When a partnership dissolves, the situation often demands that the assets, including the real estate, be sold immediately. Private negotiated marketing can not guarantee a sale within a given, short period of time. An auction on real estate may.
In general, heirs to a property involving real estate are highly motivated for a fast sale. Most states promote an auction of real estate as a means of obtaining the highest price in the shortest time span. Another reason you would consider a real estate auction is sickness, or the need for an urgent cash, or the owner’s inability to keep and maintain the house. Costs on keeping can be debilitating. All too often the transporting or retaining expenses will not be recovered at a higher sales price during a private negotiated marketing campaign. Instead the price is reduced. Consequently, the faster a property sells, the greater the seller’s bottom line dollars in wallet.
An exchange being put up on one of the legs waiting for a buyer – auction it. In a “Bull Market” the real estate auction can also work particularly well The supply and demand rule, where demand exceeds supply, is an perfect environment for opening the real estate to competitive bidding in order to obtain full profit. In overbuilt or stagnant markets, where there is no read on how low prices will fall or how long the market will remain overbuilt, the real estate auction is highly desirable.
The method of privately negotiated marketing and auctioning is different. More commonly, a real estate auction can guarantee a sale within a limited period of time, and focus is directed to the property being aucted. This can’t be achieved by private negotiated marketing.
Clearly, real estate auctions offer property owners of all types of advantages that are not available with private negotiated real estate companies.
In the real estate sector all of us are first and foremost salespeople. For a moment, let’s forget about the fancy titles and diplomas we earned in the company during our years. Our capacity as salespeople still determines the bottom line of success in our profession. We’re constantly looking for sellers so we’re getting more listings. Our next move is locating the purchasers.
A professionally managed real estate auction is a method of marketing that will find the buyers crawling out of the woodwork, and it is this benefit that will enable you to gain additional sales by offering your clients the real estate auction marketing option.