Auctions are for distressed or foreclosed properties only
All types of real estate are being auctioned today. At contemporary real estate auctions, you will typically find single family homes, townhomes, condominiums, multi-family properties, commercial buildings, retail properties, vacant land and more, all being offered by lenders, developers and private individuals who simply want a faster and more efficient way to bring their real estate to market and sell it at real market value. Foreclosed properties are often part of real estate auctions but by no means are the only asets to be found there.
Auctions are a sales method of last resort
Quite the contrary. Auctions have evolved into a preferred delivery method of product to the consumer and are growing in popularity. Real estate investors and end users are fueling the growing popularity of auctions because they want more choice, more speed and less reliance on ordinary real estate sales methods. In other words, they want a more efficient marketplace with abundant transparency for everyone involved in the transaction.
Auctions don’t result in the best prices
Actually, they always produce results far greater than what can be obtained via the ordinarily brokered sale for properties for which there is market depth. Auctions create competition among buyers and immediate price confirmation. Auctions bring multiple qualified buyers to the point of decision, in which they must act at that moment or lose the opportunity. The expert auctioneers and staff of RealEstateAuctions.com use the best and proven procedures to ensure maximum benefits to the seller.
Auctions attract unqualified buyers
Auction buyers are extremely well qualified. Auction buyers realize that they will be signing a contract at the auction that has no financing, due diligence nor attorney approval contingencies included or permitted. Buyers must have financial pre-approval before the auction event, or they must be able to purchase with cash. (Comprehensive property information provided by RealEstateAuctions.com before the auction will allow buyers to conduct their due diligence in advance and bid more freely and with greater confidence at the auction).
Auctions require buyers to pay cash
Most buyers of property obtain mortgages for their purchases and do not pay all cash.
Auctions require too much lead time
Speed and efficiency are what makes auctions so attractive to buyers and sellers. The preparation time for properties to be part of an auction is a matter of weeks and usually no longer than 45 to 60 days. Most traditional sellers experience a much longer time frame where properties often languish for many months, sometimes even a year or more, while potential buyers trickle in, each doing expensive and time-consuming inspections, negotiations and contingencies. The real estate auction method employs a huge amount of marketing to draw people to the event, where multiple individuals are typically interested in the same properties.