Benefits of Auction to the Buyer
- Properties are usually purchased at fair market value through competitive bidding
- The Buyer knows that the Seller is committed to sale and is not testing the market
- Buyers know that they are competing fairly, on the same terms and conditions as all other Buyers
- Buyers determine the purchase price
- The Sale is open and transparent
- Auction eliminates long negotiation periods
- Auction reduces the purchase time period
- The Purchase closing date is known
- Buyers receive comprehensive information on property via a due diligence pack
Benefits of Auction to the Seller
- Buyers come prepared to buy
- Quick disposal reduces long-term carrying costs, including taxes and maintenance
- Assurance that the property will be sold at true market value
- Exposes the property to a large number of prospects
- Accelerates the sale
- Creates competition among Buyers
- Requires potential buyers to pre-qualify for financing
- A firm deposit is paid on the fall of the hammer
- The seller knows exactly when the property will sell
- Eliminates numerous and unscheduled showings
- Takes the Seller out of the negotiation process
- Ensures an aggressive marketing program that increases interest and visibility
- Commission is paid by the Buyer
