The events held by RealEstateAuctions.com are typically called “multi-seller auctions,” meaning that properties owned by many sellers are offered through a common promotional campaign and auctioned in a single event.
This type of real estate auction is somewhat different to the type of auction events familiar to many people, in which one piece of property, such as a farm, or multiple items from one estate, are sold.
But multi-seller auctions are becoming an increasingly common way to sell condos, single-family homes, and just about any kind of real estate, mainly because the sale process is so much more fast-paced than the traditional method of selling real estate. For instance, our auction events typically feature scores of properties going up for sale, including individual condos, single-family homes as well as multi-unit apartment and condo complexes. Numerous developers, banks and individuals are entering properties in the auction, because they see the benefits of maximizing the selling price while completing the sales in an accelerated fashion. The total amount of property going up for sale could be worth tens of millions of dollars. To sell each of those properties individually could take would take many months or even one or more years, especially in the current economic climate, but by marketing them all at the same time, most, if not all may be sold on the very same day.
Furthermore, sellers pay for the marketing, which the brokerage firm running the auction handles. Several open houses are held prior to the auction, giving prospective buyers plenty of time to inspect the properties on which they are considering putting bids. Prospective bidders are responsible for doing their due diligence prior to the auction, and show proof that they are qualified buyers before offering a bid.
Following all these steps ensures that no one’s efforts are wasted and winning bidders can close their deals as soon as possible after the auction. In fact, the rules of the auctions usually mandate that to avoid a penalty, the sales must close no more than 30 to 45 days after a bid is accepted. This system minimizes the frustrations for both buyer and seller that often occur when trying to close a traditional sale.
Multi-seller auctions benefit people buying real estate too, because as long as they are qualified, they can get some great deals since sellers can afford to accept a lower price at auction due to the minimal overhead costs.