Reason #1: It’s a Quick sale

An auction affords property owners the opportunity to dispose of property now at today’s prices, rather than tomorrow’s prices. Time is money. Depending on reinvestment rates, $95,000 or even $90,000 today is likely more valuable that $100,000 next year.

Reason #2: High Carrying Cost are Avoided

All property incurs costs during its private negotiating marketing period - debt service, real estate taxes, insurance payments, maintenance and sometimes security. All too often, the carrying or holding cost of real estate during a private negotiated marketing program won’t be recovered in a higher selling price. In effect, the sooner a property sells, the greater the bottom line dollars in pocket for the sell and/or great the savings that may be passed on to the buyer.

 

Reason #3: Property Market Value can be Demonstrated

Instead of relaying on the appraiser to assigning an asking price, the auction process demonstrates the value of the property to sellers and potential buyers. Selling property be the private negotiated method, you may wonder whether you couldn’t have bargained higher. But if the property is sold at auction, the proof of the market value is in the process itself. Moments before the final bid, another serious buyer bid just a few dollars less. The selling price is truly market driven.

 

Reason #4: Auctions Receive Maximum Market Place Exposure

Auction companies employ saturation marketing techniques during the four-to-six-weeks prior to the event itself. The marketing time frame is more condensed than in traditional methods and therefore less expensive.