To start, when using an auction to sell real estate you get to select the day that you would like your property to sell. Instead of waiting months, or even years, you know that on the day selected your property will be sold. This means that any capital that is tied up with your property will become available almost immediately because at a real estate auction the seller typically sets the terms of sale, you get to control when your real estate is closing as well.
Because the auction company you choose is seasoned in selling assets, they know how to best market your property and who to market that property to. There will be a webpage specifically devoted to your property, e-mail blasts to potential buyers, social media advertising, signs, flyers/brochures, print and media advertising… You are able to sit back and allow someone else to do the job of creating interest.
One of the biggest advantages to an auction sale is the atmosphere created by the auction house. Buyers have a sense of urgency that is not felt during a regular sale. There is an end date. This property is going to sell on a specific date so it is “now or never” for interested buyers. The emotional and competitive nature of most buyers will usually secure the highest sale price. Often times the selling price exceeds the expected value of the property.
As the seller it is crucial to understand that you ARE protected. The seller has the right to place a “reserve” on their property to ensure that they will receive a minimum. This means that your property will not sell for less than you and the auctioneer have agreed that it is worth. If you elect to sell your property at an “absolute auction”, you have told the buyer that you are willing to accept whatever price the auction produces. Whether you use a reserve auction or an absolute auction, there is no maximum that your property will sell for either. The sky is the limit!