Is your property a good fit for an auction? Call today for a confidential auction analysis – 919-601-7339.
Most of the world’s finest assets are sold through auction — art, jewelry, classic cars, etc. Why not homes? Real estate sold at public auction in the United States has a rich history and has been successfully used for three centuries. Today, auctions are a part of the American way of life and create an exciting event where bidders compete on a fair and even playing field. Real estate sold at auction amounts to billions of dollars annually and includes every conceivable type of property including land, farms, residences, commercial buildings and luxury homes.
The majority of auctions are not about distressed or discounted properties – that’s a major misconception about auctions. The fact is that auctions are the primary sales method when selling any valuable asset that needs to have a spotlight shone on it such as vintage cars, priceless pieces of art and multi-million dollar homes. Auctions can be a perfect solution for selling when the market is slow because they throw a spotlight on a property and help differentiate it in the marketplace. And auctions are especially effective when the market is red hot because they create competition and multiple offers are handled with ease and complete transparency.
Auctions are ideal for selling one-of-a-kind, incomparable properties. Every market has a threshold above which homes are more difficult to monetize, and the typical tools of price reductions and prolonged advertising are ineffective and have no bearing on interest level. Is your property a good fit for an auction? Let’s find out! Call 919-601-7339 for a confidential auction analysis.
Are auctions only for a distressed or discounted property?
This is a major misconception about auctions. The fact is auctions are the primary sales method when selling valuable assets such as vintage vehicles, multi-million dollar homes and priceless pieces of art. The competitive bidding of an auction and the bidding of prospective bidders sets the price and market value of an asset. The item will not sell for more than the highest bid and will not sell for less than the high bid. Bidders determine the market value of an item when you buy at auction just as buyers do for traditional real estate. The main difference is that accelerated auction marketing reaches a larger audience of buyers in a much shorter time-frame.
What does “As Is, Where Is” mean?
One of the most common statements made at auction, “as is, where is,” simply means the property is being sold without warranty and that there are no contingencies based on the status of the asset being sold. It is important that you inspect all auction properties before you bid, both real estate and personal property. Photos may not show all the details or potential faults with the asset and it is your job as a well informed bidder to thoroughly inspect and know what you are bidding on BEFORE the start of the auction. Once you bid and buy an asset at auction, you are the new owner.
What are the differences between an absolute and reserve auction?
Absolute Auction: An “absolute auction” is an auction where the property is sold to the highest bidder. There is not a minimum or reserve price that must be met to complete the auction sale.
Reserve Auction: A “reserve” auction means that a price has been set between the seller and the auctioneer that must be met to complete the sale. Reserves are often used to provide the seller with security that they receive at certain amount of money to meet their sale goal.