There are obvious differences between the auction method and the traditional listing real estate method. Many properties are suitable for the auction method of marketing compared to the traditional listing real estate method—sometimes referred to as “private treaty” sales. There are advantages and distinct differences in each method, but there is one common goal shared by both the Auctioneer and Real Estate Professional: to successfully sell the real estate and meet the needs of the seller. By understanding what each method has to offer, Auctioneers and Agents can take the “team approach” to serve the seller’s best interest.
When the seller is in control, they decide when the home sells.
When using the auction method, there is a defined time to sell the property with a determined sale date. By specifying a sale date, a sense of urgency is created with potential buyers and this becomes a catalyst for the entire sales process. The auction method places multiple qualified buyers together in the same competitive marketplace, at an established time of sale. The seller is in control of time, thus controlling the financial impact of carrying costs.
In the auction environment, the price of the property is negotiated through the competitive bidding of interested buyers. The current market value of the real estate is what a buyer is willing to pay at the time of sale. Auctions establish this value and eliminate guesswork in determining the asking price through negotiating multiple offers one at a time, eliminating the hassle of unscheduled showings and long negotiation periods.