In selling real estate over a prolonged period of time, with the costs of maintaining a sales office and staff, interest expense, maintenance and other related costs -- all of these expenses are reflected into the price and passed on to the buyer. With the speed of the auction process, the seller can save on many of these costs and pass them on to the successful bidders. It is a sound business procedure and offers an outstanding opportunity to a perceptive buyer.
Auctioning provides another dimension to marketing real estate that gives the seller an important and viable alternative to private sale.
A large audience of qualified buyers awaits the start of a Mel Giller auction at a recent event in Thailand.
Auction is the only marketing technique that can guarantee a seller a specific date and time when serious interested buyers will compete to purchase the seller's property. Buyers feel extremely comfortable in purchasing at an auction sale, since it is the only marketing technique that permits buyers to openly compete and negotiate amongst their own kind. This is one of the principal reasons why the auction has proven to be successful, even during apathetic market periods.
The massive scope of a professionally planned marketing campaign, compressed over a short period of time, will bring together the marketplace for a specific property. The urgency that is implied in setting a definite time and date for the sale will guarantee this attendance.
Buyers are always the determining factor in establishing market value. This is precisely why an auction sale clearly reflects true market conditions. Whether the auction marketing is used in a "strong" market or a "soft" market, the results become equally successful, since the final bid price is determined by the marketplace, when they gather together at the sale.
In Europe, the auction method of marketing real estate has been recognized for centuries, as the most efficient criteria for establishing value. In Australia, the auction is the predominant marketing technique for the sale of real property. The popularity of the auction and its many advantages is becoming widespread in the United States. Buyers have always responded enthusiastically to auctions. The real estate community is finally beginning to recognize this fact and are offering this alternative method of marketing, to better service their clients, where the auction might very well be the only manner in which to accomplish a sale.