The Facts and the Stats of an auction.
1. Auctions establish value: In strong markets new highs are established by capitalizing on demand. In weak markets the auction creates the market by creating consumer confidence. Savvy sellers who choose our auctions enjoy an outcome that will be more successful in any market.
2. Auctions convey a sense of urgency: Emotions are one of the most frequently cited purchase motivators. “If you would move man to action, you would first move his emotions”. Aristotle.
3. Auctions facilitate quick sales: A typical auction marketing period is 45 days or less which brings your property to the attention of prospective buyers by specifying the exact day of the sale. Exclusively Auctions™ capitalizes on this momentum.
4. Auctions freeze competitive activity: People wait to see what opportunities an auction will bring and therefore sales on competitive properties are virtually frozen once the Exclusively Auctions’™ marketing campaign commences on your property.
5. Auctions expand market reach: Exclusively Auctions’™ properties are exposed to a regional, national and international proprietary database, whereas traditional efforts to sell similar real estate place a heavy reliance on a local Multiple Listing Service. In today’s world you need to think globally.
Who buys at auctions?
The MORPACE* Study conducted on behalf of the National Auctioneers Association (NAA) indicates that the auction real estate industry is projected to grow to $67 Billion within the next twelve months. Real estate auctions have become a nationally recognized outlet for buyers, and are no longer considered a last resort or “fire sale” for sellers.
A prospective auction buyer may be someone looking to relocate his company or family to your area; may be an overseas investor; or may be your neighbor looking to upgrade. We will use the Exclusively Auctions’™ intensive marketing campaign to locate and motivate buyers to purchase. Consider these NAA statistics:
· 20% of all properties sell prior to the auction
· 60% of all properties sell the day of the auction
· 5% of all properties sell within 24 hours following the auction
· 15% of all properties offered do not sell, due to reserve pricing
The auction event itself.
Almost without exception the amount of funds expended on an auction marketing campaign will far exceed that allocated to a traditional negotiated sale. This focus allows for greater exposure to take place because marketing funds are expended in a condensed period of time. This helps to eliminate prospective buyers from procrastination. It is a call to action for any interested bidder.
Harris studies* have shown that buyers feel more comfortable in competitive bidding situations and will participate in the auction process with confidence. Their judgment as to the value of the property is validated by other bidders.
The preferred and most effective location for an auction is the property itself. Excitement is enhanced by putting the “goods” in front of the bidder. It is much easier for a buyer to purchase something that can be seen, touched and felt. Psychology comes into play as bidders begin to take ownership, viewing the property as “theirs” and the bidding escalates accordingly.
A simple registration process together with the availability of detailed information on the property ensures prospective buyers are fully informed and ready to bid. Realtors are encouraged to accompany and represent their customers and are compensated at the time of closing. A registration deposit is required of all bidders and the successful high bidder will sign a purchase agreement and deliver a non-refundable deposit as a percentage of the sales price immediately following the auction. Closing is normally within 30 days of the auction date.
Exclusively Auctions’™ absolute auctions are well orchestrated to attract the largest number of bidders who appreciate our reputation and acumen. And, because they have to make their decision on a given day, they will attend and bid on your property
Is your property suitable for an auction?
Numerous factors determine the suitability of a particular property and a member of our executive team will provide a complete evaluation of your property to ensure a successful outcome. Reserve auctions are not always within the realm of Exclusively Auctions’™ portfolio and we are unable to accommodate every request to take a property to auction.
Savvy investors know about the time-value of money and want quick results, especially in changing markets. Compare the holding period of an Exclusively Auctions’™ auction vs. the uncertainty of the time required via traditional marketing. Estimate the net proceeds from each alternative.The value determined at a well promoted auction will be the value of your particular property on that given day.
Of course, we would welcome hearing from you, so please don’t hesitate to pick up the phone and call us now. Relax and let us take care of ensuring your successful outcome.