Selling Real Estate through Auctions
Owners sell for different reasons, but one point remains constant: Today’s shrewd investors are very conscious about the time value of money and want quick results. They know that a market can change quickly, and holding properties for sale can erode equity rapidly as values begin to decline. Holding costs for the property can become a primary motivation for some, and others plan their marketing to provide the fastest form of sale for a project.
Auction marketing works well in both weak and strong markets. Attorneys, trustees, and individuals with other types of fiduciary responsibility recognize the value of the auction method of marketing assets for both speed of sale and the fact that the legal system favors open, public bidding.
Financial institutions are becoming more sensitive to properties classified as other real estate owned (OREO) on their books in today’s economic climate. Consequently, they have become more aggressive in their marketing of such properties, usually through the auction method.