Wouldn’t it be comforting to know the exact day your real estate will sell?
When you decide to auction property or your primary residence you are taking control of the time aspect of the real estate transaction.
Think about planning. If you are selling your primary residence, wouldn’t it be great to know when you can close on your new home, when to schedule the movers, how many mortgage payments you need to budget?
What about a piece of commercial real estate or investment property? Wouldn’t it be a good thing to have fixed date for the sale to aid in tax planning, reinvesting or executing a 1031 exchange?
Knowing the exact date that your real estate will sell is a strategy that can be implemented by using an auction or competitive bidding.
Auction Property to Control Time
When you auction property you are controlling the time element sale. The traditional method of real estate sales (MLS listing, sign in the yard, open house) is about putting your real estate in a large sea of similar properties that are presented the same way and asking the marketplace to “Please pick me!”. There is now way of knowing if the property will receive an offer today, next month or next year, The buyers are in control of theme aspect.
Imagine being able to know the exact day your real estate sale will close- even before it sells!
Using the auction method of marketing, there will be no contingencies for financing, inspection periods. The property is sold “as-is” with a 30 day cash close.
In planning the timeline for the marketing and sale of our real property we will schedule the closing for 30 days after the sale date. You will gain the piece of mind of knowing when your property will close before it is even advertised for sale.
In Australia, selling residential properties (single family homes) is the norm because there are limits on how long an agent can hold a listing. Experts predict that this trend will catch on and grow in the United States as outlined by this article in Forbes.
Time Is Money
There is always a point of diminishing returns when a property languishes on the MLS for months and months. Think of the costs that accumulate; loan payments, taxes, maintenance, HOA fees, utilities. We should also not forget about depreciation and the loss of material value that can occur when a property is vacant and not maintained on a regular basis.
The problem is that these carrying costs are “open ended”. In other words, there is no foreseen end to them. If there are no offers on the property that effect a sale, the expenses could accumulate forever! We all know that the longer a property lingers out on the market, he harder it is to sell. I’m sure you have heard the term “stale listing”.
When you are planning for the sale of your real property, wouldn’t it be nice if you were able to budget for the sale? If you know when your property will sell, figuring carrying costs would be simple.
An auction takes the guesswork and the “what ifs” out of the sales process. For those who like to plan and schedule, the auction method of marketing is probably the best process to take the variables out of the future and replace them with hard dates and time periods.
The Need For Speed
We all hear about the property that is listed on Wednesday and sells on Friday. Those situations happen, especially in bubble markets like we had before the crash of 2008. Those “listed today, sold tomorrow” situations are fairly rare in today’s market and are certainly not the norm.
The other issue with the property that sells quickly is the probability that it was priced below what the market was willing to pay. if a property is placed on the MLS or one of the commercial listing sites and is obviously undervalued, it will more than likely receive offers from bargain hunters before other buyers become aware of the property.
Selling a property the is priced too low can help you control time but you are unable to realize the market value. We call that “leaving money on the table. When you auction property or property or utilize “accelerated marketing” to sell real estate, not only can you control time but by creating a competitive bidding environment, you can achieve market value. In an auction, the sale goes to the highest bidder, not the first and lowest offer.
If you need to control time in the sale of your real estate, then an auction may be the option to take. When you auction property, you take the guess work out of planning for the immediate future. Whether your purpose is a family move, estate liquidation, equity realization or any other reason that time is critical, a real estate auction may solve your problem.
Remember, time is the great equalizer, we all have the same 24 hours in a day. Those of us who view time as a precious commodity, more valuable than money, would never want to waste or squander it. Any way to take control of precious time should be utilized.
The auction method or accelerated competitive bidding is a tool to take control of time. This method takes out all of the variables of a real property sale and provides the seller with solid piece of mind an the freedom to make definite plans.