The Unconventional Solution: Using the 'Auction Alternative' to Selling Real Estate - Sutton — Canadian Real Estate Listings & Agents |

The Unconventional Solution: Using the 'Auction Alternative' to Selling Real Estate

18 October 2017

The Unconventional Solution: Using the 'Auction Alternative' to Selling Real Estate

Conventional Real Estate Problems:

  • You have been showing a project that has been getting tire kicked to death. Prospects come and go but they are only lookers - not buyers
  • Your are handling the sale of property for an estate and the heirs want the fastest, most efficient way of converting that property to cash.
  • You are handling the sale of property that is in bankruptcy, power of sale or being disposed of as a result of a divorce and again your clients want fast action.
  • You have a rare offering, a trophy property or a lake shore estate, but qualified buyers are both scarce and acutely aware of it. You want to bring all the potential buyers together in a single room. Generate a sense of urgency and excitement about the property and create a situation where these prospects must reach a decision.
  • "The solution to each of your problems may depend on your willingness to use a tool that has been around for centuries - but is gaining new ground every minute, "Real Estate Auctions." (Over 1.5 billion dollars in 1999)

What Are The Advantages To You:

  • Commissions: Unsold property generates no revenue for you or the vendor. Generally real estate offered by Auction is sold "as is" and except in a few instances with no financing contingencies. Costs of conducting the auction are paid by the vendor as a listing fee. Real estate commissions are shared by listing offices as well as selling offices - M.L.S. or co-broker. Plus with buyer premium the purchaser pays mostly all cost of the marketing plus commission.
  • Client Satisfaction: An unsold property and a satisfied vendor are a rare combination. The auction provides your vendor with the opportunity to cash out, sometimes to a better price that they may have thought possible under current market conditions. Details, details - at a real estate auction details are handled by professional auctioneers/sales representatives. Make sure you are dealing with a professional real estate auctioneer/sale representative - not someone who "does a little real estate of the side."
  • What Do You Look For: Access to an extensive network of qualified buyers, aggressive marketing and public relation efforts, familiarity with legal requirements, ability to handle countless nagging details while creating a smooth running, reassuring and yet exciting auction environment and a thorough knowledge of the estate business.
  • Time and Money: No more wasted days providing free entertainment for unqualified lookers. No more high cost classified or display ads. No more open houses either. Relief from all the promotion and marketing costs involved in trying to move an unsold property.
  • More Sales: For example a real estate auction of twenty houses was held in a Chicago suburb of Buffalo Grove. Prior to the auction there hadn't been fifteen sales in the previous fifteen months. In addition to selling the twenty completed homes, the auction generated so much traffic and interest that twenty additional homes under construction were sold within the next four months by conventional means - M.L.S.

The trademarks MLS®, Multiple Listing Service® and the associated logos identify professional services rendered by REALTOR® members of CREA to effect the purchase, sale and lease of real estate as part of a cooperative selling system. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.