There is no better time for a Seller to auction real estate than in a “HOT’ Seller’s market… none!!!
A Sellers Market is all about supply and demand….the less supply, the more demand, and the higher the sale price, it’s that simple. We have all heard someone say that they sold their home in 1 or 2 days. Well, that tells some people that it was sold to cheap. If a buyer snapped up the property that fast, you can bet dollars to donuts that there were other buyers that would have paid more.
There’s an old saying, “when you’re in the driver seat, drive baby drive”. In a Hot Sellers Market, the Seller is in the driver’s seat and has the ability to maximize the sale price with an auction.
Why limit your sales price with the asking price typically set in a traditional sale?? There is no better time to auction a property than in a Hot Sellers Market! Open and competitive bidding drives the sale price up, never down. With an auction, the property is also sold with no contingencies and settles quickly.
There are bidding wars that occur with a traditional listing, but they are not transparent whatsoever to a buyer and many buyers refuse to participate for fear of being used as a wedge simply to get another buyer to raise their price. Buyers also do not know if there actually is another buyer making an offer and they will drop out for fear of being manipulated by the seller’s agent to raise the price.
Even if a contract ratified, the seller is still dealing with the contract contingencies which drag out the process, and upwards of 30% of all traditional sale contracts are terminated because of contingencies. Than what?? A seller has to start all over and what if the Hot Sellers Markert turns cold and becomes a Buyers Market? The Seller has lost the window of opportunity!
Properties offered at auction are sold “as-is” with no contingencies. This means the high bidder cannot back out of the auction purchase contract without risking their escrow money because of inspections or lack of financing. Experts have estimated traditional sales have a fallout rate as high as 30% because of contingencies. This lengthens the time it will take to sell their property and increases the overall cost a Seller incurs which ultimately reduces the net proceeds at the closing. Real Estate auctions have less than a 3% fallout rate.
The Sky Is The Limit
No limit to the sale price! Traditional listing methods allow the highest sale possible price to be capped by the Seller´s asking price. Even when the traditional listing turns into a “Bidding War”, the results are never as good as an auction with real-time competitive bidding. In a “Hot” Sellers” market the Love Auction method is the only way to go! A Love Auction does not have a ceiling when it comes to price like the traditional sales method and auctions allow the market to speak for itself. That is why world record prices are established at auction, not by Seller pricing. Real-time competitive bidding creates the urgency for Buyers to make decisions on the spot which drives the price up and often exceeds a Sellers expatiations.
No Negotiation Zone
The Love Auction method of marketing real estate pits Buyer against Buyer. This allows the Seller to sit back and enjoy the escalation of price since the terms and conditions of the sale were established by the Seller prior to the auction. Traditional sales processes pit the Buyer and Seller against each other causing an anxiety-ridden back and forth, sometimes for days or weeks. Many times, this results in strained relations between the Buyer and Seller even after negotiations have been settled.
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The real estate market is ever-changing. A Buyers’ market can become a Sellers’ market overnight. Real estate values are often determined by the season, the economy, and major events taking place locally, throughout the region and around the world. We’re here to guide you though the process and figure out which method is best for you.