Advantages of an Auction
The auction method continues to be the marketing concept that sells. Our culture is now using auction services daily and with the strong growth of companies such as Ebay, buyers will continue to be attracted to the auction method. Often times with recreational property there are very few “market comparables” making it difficult to price the property. An auction will eliminate the pricing problem. In an auction the price is increased with each increment bidding, getting more for the seller. A traditional list the selling price is generally less than the asking price, which is less dollars for the seller. In a traditional list the property can remain on the market for months and increase the seller’s holding cost of the property.
Below are reasons why more and more sellers are considering the auction method when disposing of their real estate investments, and why auctions are attractive to buyers.
Advantages for Sellers
- Generate more dollars per acre due to the excitement, emotion, and psychological behavior that occurs between two bidders, a competitive spirit
- Create a sense of urgency on auction day
- Allow the seller to control the terms and conditions
- Generally market, sell, and close within 60-90 days
- Pre-qualified buyers prepared to bid on auction day
- Allows the seller to have a pre-determined day for sale of property
- Allows for contingency free contracts and non-refundable earnest money
- There is no ceiling price
Advantages for Buyers
- Visible market is identified by competitive bidding by others attending the auction
- Stress of working out the contingencies is reduced between seller and buyer
- More information is generally available to the buyer concerning the property
- All buyers have equal opportunity to purchase the property, no fear of being squeezed out
As a Participating Broker with Cabela’s Trophy Properties, LLC has allowed Dakota Properties Real Estate to take advantage of the marketing system Cabela’s offers. No other real estate firm can place your recreational property on Cabela’s web site or part of Cabela’s catalog that gets sent out bi-annually to over 85,000 customers.