Auction Services

 

Most properties are salable by auction, however not all. If a property will only appeal to a narrow market, auction may not be the most effective marketing method.

 

One method to determine if auction is the best marketing strategy is the Two-Thirds Rule. This involves analysis of the market, property and seller situation. Generally, if two of the three parts (market, seller, property) lean toward auction, then auction should be offered to the seller as a sales option.

 

GOOD AUCTION SITUATIONS INCLUDE:

 

Market (Buyers)

  • A changing market

  • A dull market

  • Not enough of the property type

  • An emerging market

  • A seller's market with known high demand
     

Seller

  • Needs immediate cash

  • Has a partnership or marriage break-up

  • Is moving out of state

  • Wants to liquidate an estate

  • Is retiring

  • Is an auction-minded seller

  • Has a listing that is about to expire

  • Has already purchased another house

  • Knows the auction will bring fair market price

  • Has financial problems

  • Has high carrying costs on the property
     

Property

  • Has a lot of equity (25% or more)

  • Is unique

  • Has a lot of high carrying costs for  the owner

  • Is vacant

  • Is difficult to appraise

 

 

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