The auction system of selling real estate is a time/value system. Its sales results come from a marketing method, not an advertising effort. The streamlined auction method lets the seller specify the date of the sale.

Buyers receive property information packages in advance for all parcels being offered, so on the day of the auction, buyers are there with money, ready to buy. Buyers sign a “no contingency” contract, so there are no financing negotiations, second mortgages, or balloon payment options, and closings occur within 30 days. The auction process creates excitement and competition among buyers.

Marketing is one aspect of a comprehensive auction system. A descriptive brochure is produced for accepted properties that includes photographs, complete property descriptions, surveys, zoning classifications, plats, and terms and conditions. Descriptive information is provided to help bidders make an informed assessment of the property. Everything an auctioneer knows about the property is disclosed, so the buyer will be in the best and most informed position to bid.

Time is money. Traditional selling takes time for advertising; meanwhile, the seller still pays interest, mortgage, taxes, insurance, maintenance costs, etc. Motivated sellers could reduce the price, sell the property quickly, and still net more in the sale by not paying a year's worth of carrying costs. The auction system reduces long term carrying costs and saves the seller money. Depending on the property and the complexity of the deal, a property information package and marketing plan can be produced allowing the property to get to auction in 30 to 40 days.

The auction method of marketing is changing the face of real estate sales in our area; call your REALTOR® to find out more. The bottom line . . . auction spells action.

Written By: Joe Abal, Abal Auction Real Estate