Real Estate Auctions: A Focus on Benefits to Sellers
Sellers stand to reap several benefits from using real estate auctions to sell their properties. Auctions accelerate the marketing and sale by offering competitive bidding with a condensed timeframe. In modern times, auctions have become the preferred method of sale for many businesses and individuals who want to liquidate unused buildings and land.
How do Real Estate Auctions Benefit Sellers?
Auctions benefit Sellers in many ways. According to the National Association of Realtors, Sellers gain major benefits by using an auction process. Their findings are collaborated by other auction companies. In brief, Sellers come out ahead using the auction method because:
- Buyers come prepared to buy and must pre-qualify for financing.
- Sellers are assured that the property will sell at true market value.
- The property sale is accelerated.
- Long-term carrying costs such as taxes and maintenance are reduced because of the quick sale.
- A larger quantity of pre-qualified prospects can be exposed to the property through aggressive marketing.
- Competition is created among the buyers.
- The auction price may exceed the price of the negotiated sale.
- Seller knows exactly when the property will sell.
- Auctions eliminate numbers of showings and “lookers”.
- The seller is removed from the negotiation process.
- No contingencies are allowed on an auction property.
- A specific property is highlighted, forcing buying decisions.
- The auctioneer works exclusively for the seller.
- Sellers can set a reserved price. If there are no bidders at that level, the Seller can opt out of the sale.
What are the Best Properties to Auction?
Look around at your assets to determine which ones could best sell through an auction. Items normally sold at auction run the gamut from real estate to equipment to the states and chattel. Everything has a price.
Cruikshank Realty specializes in real estate auctions. In our experience, land auctions do very well. This includes farmland, pastureland, and recreational land tracts. Otherwise, any property is suitable for auction when the Sellers need to sell quickly or they are absentee owners. One-of-a-kind properties where there are no comparable properties also lend themselves to real estate auctions.
How to Sell your Property at Auction
Get started by finding a reputable local auctioneer. The auction company will sit down to review your goals for the auction. Why are you converting your assets into cash? Based on the market value, your auctioneer will evaluate your properties and weigh them against your expectation. A good auctioneer will advise you as to the best approach. For example, to achieve a good sale, is it better to sell 200 acres as one parcel or divided into five tracts?
The auctioneer’s sale analysis and appraisal will determine the auction event. In fact, the auctioneer and the Seller partner through a contract to get the best possible outcomes.
Real Estate Agents Specializing in Colorado Land, Farms and Ranches
For more information, please call Gene Cruikshank, Broker/President, Cruikshank Realty at (719) 336-7802. Schedule an appointment or stop by Cruikshank Realty to visit. Cruikshank Realty is located at 20 S. Main Street, Lamar, CO 81052. Specializing in Farm and Ranch Real Estate Sales, Management, Auctions, and Exchanges.