28 Feb Auction a profitable move in present times
Today the popularity of auction sales of real estate is rising by leaps and bounds. Although the old traditional way of real estate selling is still prevalent these auctions have made a name for itself in the market. Gone are the days when auctions were considered nothing but dishonour sales done by anxious sellers. This was only the way to liquidate the property. But the viewpoint of people has changed. The number of auctions has increased comparatively. Sellers of both residential and commercial properties are opting for auctions keeping the market price in mind. Hudson & Marshall has played a very important role in this.
Why auctions are chosen as an option?
The option of auction arises when the sellers become auction oriented with a hope that they can fetch a better value. Seller can get a better value only when his equity position is firm. This strong equity position saves his money which he would have end up paying to as sales commission. However auctioning can be successful only when market is rising high.
A profitable auction
An auction is considered profitable when the supply is less in the market for a particular type of property and the demand is relatively high. The other scenario is market is a deteriorating with little limited supply of buyers’ interest.
When a property is offered for auction it is vital that all the interested parties are brought together on the auction day and a competitive bidding is done by the participating parties. In the past the properties to be auctioned were the ones in poor condition or about to close. But now this auction has even reached to the homes of sellers. The prime reason for this is changing in the view that seller will not auction his property at a low price than the actual market price. They are free to set a minimum price for auction which is of course more than market value. Moreover this also reduces the risk that seller will have to buy back the property and save the extra money given as commission.
Why auction is the best way
Auction in every way is the best way to know the correct value of real estate. Auction also helps in marketing of the properties. Owners usually wait to create a demand in the mind of bidders and further grab the attention of budding buyers. These buyers get registered once they are proved to be financially stable. This is done so that the seller will not have to wait for his money. Then a particular amount is remunerated by the buyer as down payment.
Factors to keep in mind
Some of the factors to keep in mind are
- He should seek advice from a professional consultant who is veteran in auction process.
- It should have a good marketing campaign so that a powerful impact is created. Hudson & Marshall is the best example of this.
- Email marketing should be on top priority.
- The marketing of auction should be done both on audio visual media. This will have much more impact.
- Social media marketing should also be done.