CHAPTER 21 Additional options – Auctions
Auctions are an ideal way of selling one of a kind properties. Every market has a threshold above which homes are more difficult to monetize, and the typical tools of price reductions and prolonged advertising and PR exposure can hurt more than help the outcome of the sale. Especially on high priced properties, price often has no bearing on interest level, and price reductions are ineffective.
WHY CHOOSE “AUCTION” INSTEAD OF “SELL TRADITIONALLY”
The question is not whether to auction instead of selling traditionally, but choose to auction as an added tool rather than an alternative. Auctions are always done with a listing agent involved on the seller side.
The Auction can be done in two distinct ways:
• With a reserve – the property will sell at or above a pre- determined price threshold on auction day. • Without a reserve – the property will sell to the highest bidder on the auction day. There is no minimum bid that must be exceeded to • purchase the property. The seller reserves the right to accept or decline any offers.
HOW DOES THE AUCTION PROCESS WORK 113
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