Auctions Can Move Difficult Relocation Inventory
If you are looking for a new way to move corporate owned inventory, why
not give the auction process a try? It is a great tool for difficult
inventory or really any property where the client is looking to quickly
establish a sale. During the auction process, you are appealing to a
broad range of potential buyers and bringing them all together on one
day to essentially “bid” on the home. The high bidder establishes the
market value for the home. This is the quickest way to determine what a
property is really worth in the current market. Auctions are no longer
just generating “firesale” prices, but rather quickly bringing together
the largest group of potential purchases who collectively decide the
fair market value as of that day.
Auctions in today’s marketplace can bring out dozens of buyers all
looking for a bargain. Once the competitive bidding process starts,
emotions kick in and often someone will pay more than they had
anticipated once the threat of someone else buying “their” house
becomes a reality. We have held many successful auctions this year and
for the right corporate seller it is a great way to move inventory. It
is always subject to the corporate client’s confirmation, so if the
high bidder is not at an acceptable price, the offer can be countered
or simply turned down. The only out of pocket expense is the
advertising costs, which generally runs a couple of thousand dollars
depending on the cost of the media in a particular area. Otherwise, the
typical and customary real estate commission would be charged only at
the close of escrow and many auctioneers will allow broker
participation at the sale.
Best of all, you can ask the auctioneer to only entertain offers that
are free of all contingencies, so you won’t have to worry about
mortgage financing, bank appraisals, home inspections etc. Of course,
we recommend disclosing any and all inspections, repair estimates,
seller’s disclosures etc. at the auction prior to bidding so that
everyone knows what they are buying.
Posted on 12/18/2008 in Domestic Relocation | Comments (0)
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