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Top Reasons for Auctions
Let me start by saying that selling items by auction is one of the oldest methods known. It is also one of the best ways to discover the Fair Market Value of an item. The auction method of marketing is a fast paced, energetic and exciting method of selling real or personal property.
Now let's look at some of the top reasons for having an auction.
1) Buyers come PREPARED to buy.
2) Exposes the property to a large number of buyers.
3) Accelerates the sale.
4) Creates competition among buyers.
5) Potentially increases the price over a private transaction.
Lets discuss these in more detail. Buyers do come ready to buy. You come to an auction because you have seen something in the advertising that you want, be it real or personal property.
The sale is accelerated from the standpoint that when you write a contract for a traditional listing you usually ask for the contract period to be 90 days or more. When the property is to be sold at auction it only takes approximately 30 days from signing the contract to the day of auction. This not only leads to happy sellers but more properties sold equals more commissions.
The auction method creates competition among buyers because everyone who is interested in the property is there. It is not like a traditional sale where you may have multiple offers but the sellers usually never meet the buyers until they see each other at the closing table. But, more important buyers meet buyers at the auction and this can lead to some very nice results.
The potential of increased revenue for the sale is very real. When you have 2 or more people all wanting the same item or property the chance for an increased sale price is very real. Which goes back to competition.
Agree or disagree drop me a line and let me know what your thoughts are on this.
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