When it comes to selling commercial or residential real estate, the traditional route of listing with a real estate agent may not be the best option. Auctions have been gaining popularity in recent years, and for good reason. Here are five benefits of selling real estate at auction:
1. Competitive bidding: With an auction, multiple buyers are bidding against each other in real time, which can drive up the sale price significantly. Bidders know that their bid is only one increment more than the previous bidder which reinforces demand. It’s not like sending in a blind offer and not knowing if any other bids are submitted.
2. Time-efficient: Auctions typically have a set date and time, so the sale process is faster compared to a traditional listing where the property may sit on the market for months. Our online auctions generally market the asset for about four weeks with the bidding open for 5-7 days. This gives every bidder several chances to bid.
3. Cash sales: Auctions often require a ten percent deposit from the winning bidder, which means the sales are unlikely to fall through due to financing issues. Less than 1% of our real estate auctions fail to close.
4. Marketing: Auction companies often utilize extensive marketing campaigns to promote the auction, which can attract a larger pool of potential buyers. Our marketing budgets may include online advertising, social media promotion, online real estate databases, email blasts, print ads, and direct mail campaigns.
5. Transparency: Auctions are transparent, and all bids are public, which can create a level playing field for all buyers. However, the identity of bidders is not made public.
Selling commercial or residential real estate at auction can be a smart move for property owners who want a quick and efficient sale process, while also attracting serious buyers who are willing to pay top dollar.
Give the SVN Gilmore Auction Team a call at 504-468-6800 or an email to David.gilmore@svn.com to discuss your real estate.
