Real Estate Auctions
How about a real estate auction to sell your property? Can it really sell it after you've had your condo on the market for the last twenty four months with no action? You darn right it can.
Real estate auctions bring a ton of spectators and buyers to the table. Investors come, end-users come, real estate agents, friends, families and the neighbors. Real estate auctions bring excitement to the selling of real estate. Buyers are looking for a great deal and sellers are hoping that they can get a great price for the property. In the end, the value will be set by the market. When a condo sells in a real estate auction, regardless of the price, as long as it has been marketed correctly, is really the true value of the condo. It is what people were willing to pay at that particular time for that condominium.
When you put a condominium up for sale in an auction, what do you price it at? And what happens when it sells less than what you wanted? There are three different types of auction. Let's talk about the "absolute auction" first. An absolute auction is when you place your property in a real estate auction and let the buyers determine what your price is going to be. This is the most exciting of all auctions because the property has to sell regardless of price. If there are no bidders other than someone that's offered $100, you have to sell the condo for $100. This is not realistic though. Most "absolute" condos that are auctioned off actually sell for more because people are excited to bid on an absolute because they know that if they bid the most, they will win the condo. This type of auction attracts the most attention. The buyers of condos want to know that they will be able to take home their prize if they put all their emotion into winning the auction.
The second style is the "minimum bid" auction. This is where the seller states a price that he or she would be willing to sell if the price was achieved. For instance, let's say a condo was selling for $200,000 and the seller said, if I put the condo up for sale in the auction and I put it under minimum bid, I would want no less than $150,000 or I will not sell it. It would then be advertised at $150,000 minimum bid or it would not be sold. Tomorrow we'll talk about the "reserve auction".
