Using the Auction Method:
Using the Auction Method of selling Real Estate creates a level of interest and sense of immediacy that is unparalleled by other methods. Auctions present a decision-making deadline to the buyer as opposed to the open-ended process of the conventional listing. Additionally, the compressed time frame of an Auction, results in a reduction of the Owner’s carrying costs.
With the knowledge of the changing Economic Market, Walker assists clients in selecting the most effective method to sell their property that will best meet their needs and expectations. Our Professional Commercial Sales force is highly experienced and capable of successfully promoting and locating commercial sales and purchasers.
Over recent years, Walker’s Auction Division has traveled the Mid-Atlantic for clients including shopping centers, mini-warehouses, raw land, residential property and business liquidations. Our dedicated Auction Firm’s main objectives are to reach all possible buyers for the property through a custom tailored promotional program and to turn heightened interest into attendance and ultimately a sale. Our customer satisfaction has been built upon well-informed Market information resulting in successful transactions for both sellers and buyers. Please contact us for any information you may need.
Benefits of Auction Method:
An auction can bring all potential buyers together quickly in a competitive situation which can often result in a higher price than through a traditional negotiated sale. The Auctioning of special purpose properties can carefully target all of the limited number of potential buyers in a short period of time. An Auction can provide relief from holding costs such as interest on loans, or convert equity to provide a return of investment.
Absolute Auction - Absolute is the best type of Auction to energize the marketplace and attract the largest number of qualified investors and purchasers. There are no minimum bids or reserve prices at an Absolute Auction. The highest price induced by the Auctioneer through the course of competitive bidding will be the final absolute selling price.
A prime advantage in this method is the maximization of buyer motivation. Purchasers must recognize the value of the property. This figure will reflect a discount of true market value, as all potential purchasers will be present at a given time. The key to obtaining the maximum price is the quality of the marketing process in attracting the largest number of qualified but educated prospects that understand the value and generating the excitement and competitive bidding.
Auction With Reserve - This method offers an alternative to the Seller who is unwilling or unable to offer property at Absolute Auction. One is able to utilize the motivational impact of an Auction, yet maintain security requirements by establishing a minimum required sales price for the property being sold.
The Auction procedure works the same, and the concept of competitive bidding is the same. However, some marketing excitement and buyer participation is lost. Some investors are unwilling to expend the time and effort to travel long distances and apply for preliminary financing without knowing the minimum price, or that the property will definitely be sold. This is the major negative aspect of this type of auction.
Absolute Trustee's Foreclosure - This particular type of Auction is the best of both Absolute and Reserve Auctions. The Auction Company is allowed to advertise the sale as an Absolute Auction because the title will change hands even if the Bank buys the property. The Bank is able to protect its interest because it does not have title to the property. Oftentimes, however, the Bank will set its amount that they will protect the property, based upon a discounted price of the actual value of the property, instead of the amount owed against the property.