- June 10, 2024
- Reading time about 6 minutes
The real estate market is quite competitive and a recent study reveals a growing trend in selling properties through auctions. Whether you want to sell a commercial property, residential property or a plot of vacant land, you have multiple options. Based on your goals and timeline, you can either work with a traditional real estate agent, sell it yourself or auction it off. Real estate agents often struggle in the journey from property listings to sale and may not find success through traditional property selling methods.
Some properties may require a different strategy to unlock their full potential. That is where auctions act as a boon in selling them off. In this blog, we will find out how a reliable real estate auction platform can help drive value from stagnant property listings and benefit both sellers and agents through auctions.
Understanding Basics of Real Estate Auctions
If we talk about selling property through auction, it can be defined as the process of selling the property where you present a commercial building, residential property or a piece of land to a group of interested buyers all at once rather than showing the property to prospective buyers and waiting for them to put in an offer. In the auction process, buyers will bid on the property and a person who puts the highest bid at the end of the auction will win the property as long as they meet the set conditions.
Before selling real estate at auction, it is essential to understand the full process as well as the options during the auction process to get a clear idea of the pros and cons of selling property through auction. One way to find out whether you should sell the property at auction or not is to use the method known as the two-thirds rule. This rule says that if two out of the three components are in favour of auctioning a property then the auction is the best option. These components are-
– Market
Properties do well at auction during a seller’s market when there is high demand but low inventory. The auction can also be effective when the market is sluggish, in transition or the property is unique.
– Seller
For sellers who want to sell off property quickly, are going through a major transition or change in their lives, or want to get the best possible price for their property within a certain time limit, you must consider the auction process.
– Property
The property that needs to be sold can influence whether or not an auction is the best route to go. For properties that are challenging to appraise, are unique, or have sat long in the market, the auction is the best.
What Makes Auction a Great Option for Stagnant Property Sales?
Whether you are selling commercial, residential, or any other type of real estate, the auction offers several benefits for the seller. This is because the auction process gives more control over the sales process compared to the traditional method of listing property for sale and waiting for buyers. This process is usually considered hassle-free for the seller as they don’t need to fix up the property and wait for the results of the inspection before moving forward with the sale.
In many situations where the property sat long empty in the market without any response, an auction method acts as a great way, which help in selling the property at a desired price within a set time limit. Apart from having a well-planned real estate agent website, here are some of the best benefits of auction sales that provide value to agents and sellers.
1. Set the Desired Timeline
Firstly, you must set a desired timeline, which is the key benefit of choosing an auction method for the sale of your property. As compared to traditional sales that come with uncertain selling timelines, auctions enable sellers to set a specific date for the event, creating a sense of urgency among potential buyers.
Auctions provide a more predictable and efficient sales process as there is no need to put effort and time into constantly showcasing the property over an extended period.
2. Buyers’ Competition for Property
Another benefit of auctions is that it fosters competition among buyers, ultimately driving up demand for the property. Potential buyers who are interested in attending an auction are often prepared to make competitive bids, resulting in a more dynamic sales environment, which is not possible in traditional selling methods.
This competitive atmosphere with the auction method can lead to a faster sale of the property at a desirable price for the seller.
3. No Hassle of Property Showcasing
Auctioning a property eliminates the hassle of extensive showcasing and staging of property to attract buyers. Unlike traditional sales, where property preparation and showcasing can be time-consuming and costly, auctions present the property as it is to potential buyers. This saves sellers from the burden of constant property maintenance and showcasing efforts.
4. More Serious Buyers
Real estate auctions often attract more serious and qualified buyers as compared to normal methods of property selling. In Auction, bidders are required to make cash deposits or undergo pre-qualification for financing, which ensures that they are genuinely interested and capable of making a purchase. This pre-screening process eliminates the presence of non-serious buyers, creating a more focused and efficient sales process for the seller.
As we can see, opting for a real estate auction can offer a wide range of benefits and give stagnant property listings a new life to unlock better value and opportunities for sellers as well as agents. Be it a defined timeline, increased buyer competition, reduced property showcasing efforts, and a higher concentration of serious buyers, auctions can streamline the selling process and maximise the potential for a successful sale.
Final Takeaways
In the end, we can say property auctions can act as a great way to deliver a successful outcome not just for the sellers but also for the real estate agents. This works tremendously better when traditional methods are not helping in yielding results and properties are listed in the market for a long time without any response. Embracing strategies like auctions can help agents serve their clients better and maximize the potential of every property.
If you are planning to give stagnant properties a chance to unlock better results for both sellers and agents, consider auctioning with the help of BidHom, a top-notch real estate website builder that specializes in creating bespoke real estate websites for businesses across the globe. Book a demo with BidHom to see how we can help you unlock the power of auctions to faster property sales.
