About Real Estate Auctions
Auction Marketing of Real Estate
The sale at public auction of real estate in the United States has a rich history and has been successfully used for three centuries. Such properties as Thomas Jefferson's home Monticello, the Pan Am Building in New York, 1/3 of an acre parking lot two blocks from the White House, large and small land holdings as well as single-family homes and commercial or residential properties have been sold effectively at auction.
With the recognition of the importance of the ongoing interest costs and/or the loss of return on capital locked up in idle assets, the marketplace has placed increased importance on the time value of money. Consequently, the volume of auction sales has been increasing as a percentage of the total real estate sales in the last decade in the United States and around the world. The success of these auctions in all circumstances has eliminated the negative perception of auctions (that auctions were synonymous with disaster) that dated back to the days of the American Depression.
Today an auction is a community event where bidders and spectators can observe the open competition and act in their interest in the marketplace. Sellers have the opportunity to obtain not only a willing buyer, but the best of all willing buyers. The auction will produce an offer, within 30-45 days from signing the auction listing contract, that will in many cases exceed the seller's expectations.
Sellers and Buyers Both Benefit
Auction results are most often "win-win" for buyers and sellers. The seller sets the date and time for the sale and controls the terms and conditions through closing. The buyers knows that the seller is committed to sell and can quickly assess the property for their own use and valuation. What better way to determine "Fair Market Price"?