Auction / Liquidation
Why should I sell at auction?
This is often one of the first questions asked an auctioneer. One response is why are precious art pieces such as Rembrandt or Monet sold at auction? Why are sports collectibles such as Babe Ruth or Lou Gehrig items sold at auction? Answer, AUCTIONS WORK!!!
In private treaty selling who is more or less in control? The buyer, because the seller wants to sell,he doesn’t want to let the buyer “get away”, so the seller usually conforms to demands made by the buyer. “This offer is made subject to financing, inspection, zoning, etc”.
At auction, the terms and conditions of the auction are established by the auctioneer & seller and known to all buyers. If the buyer doesn’t conform to the terms someone else will. The buyer must conform to the terms & conditions of the auction and the seller stays in the drivers seat.
Urgency & Competition To Buy Is Created
Buy this property today, because it won’t be available tomorrow. The auction method of marketing creates competition that is not there with private treaty. In private treaty you have one buyer and one seller, offers, counter-offers, and the slow negotiation process are swiftly turned into an exciting, urgent bidding competition. The auction brings all buyers together competing against each other to be the highest bidder, all being forced to make a decision now, thus increasing the sales price.
High Holding Costs Avoided
Selling by private treaty, how long will it take to sell a piece of property? For real estate it could take 6 months, 1 year, 2 years, maybe longer. How much will you spend in interest, taxes, insurance and maintenance on the property to keep it looking its very best?
Not to mention the “time value of money”, what else could your money be doing for you? The quicker you sell your property, the greater the bottom line. We can usually have your property SOLD in 30-45 days, closing in 60-75 days, less than 2 months.
Auction Marketing Attracts Attention
Consider this, driving along you pass 2 similar pieces of property each with a sign. One sign reads “FOR SALE”, the other reads “PUBLIC AUCTION”. Which one would immediately get your attention? An auction sign draws peoples attention & gets them excited like no private treaty sign can. The National Association of Realtors estimates that 30% of the real estate sold this year will be sold at auction.
Every auction marketing plan is different. By using signs, newspaper, specialty magazines, direct mail brochures and depending on the type of auction we may feel that radio or television is necessary to reach all the prospective buyers.
For real estate, when the auction is over we will provide you with a signed purchase contract with a deposit check. For personal property, we will provide you a computer printout detailing each lot number, description, sales price & buyer number.
The auction method of marketing accelerates the process of selling property by compressing the marketing period. Rather than putting a “FOR SALE” sign on the property waiting for someone to purchase, YOU are stating “Buy now or lose the chance”.