Real Estate Auctions
Need to sell property fast? Settle an estate?
A real estate auction may be the right choice.
Auctioning real estate has advantages for both the property owner and buyer. The auction reduces the
sales time by taking the negotiation of sales price and contingencies between the property owner and
buyer out of the process. Also the property is sold “As Is” so a home inspection does not slow down the
sales process. The property owner sets his/her conditions up front. Both the property owner and buyer
know the sale date and closing date. The auction also provides the property owner and buyer with the
true market value of the property through competitive bidding.
Additional benefits to the property owner:
Additional benefits to the buyer:
A property owner has different types of auctions to choose from.
A real estate auction may be the right choice.
Auctioning real estate has advantages for both the property owner and buyer. The auction reduces the
sales time by taking the negotiation of sales price and contingencies between the property owner and
buyer out of the process. Also the property is sold “As Is” so a home inspection does not slow down the
sales process. The property owner sets his/her conditions up front. Both the property owner and buyer
know the sale date and closing date. The auction also provides the property owner and buyer with the
true market value of the property through competitive bidding.
Additional benefits to the property owner:
- An auction eliminates showing the house numerous times. Buyers view the property at the
same time. - A faster sale reduces long-term carrying costs, including home maintenance & real estate taxes.
- An auction exposes the property to a large number of potential buyers.
- Buyers come prepared to buy - potential buyers are required to pre-qualify for financing.
- An auction creates competition among buyers and the auction price can exceed the price of a
negotiated sale.
Additional benefits to the buyer:
- The property owner is motivated and committed to sell.
- The buyer sets his/her own purchase price.
- Buyers know they are competing fairly and on the same terms as all other buyers.
A property owner has different types of auctions to choose from.
- Absolute Auction (or an auction without a reserve). The property will be sold to the highest
bidder regardless of the sale price. This type of auction usually draws a larger number of
potential buyers because they know the property will sell that day.
- Minimum Bid Auction. The property owner determines a minimum bid that he/she will accept
and this amount is published in advertisements and announced at the auction. The auctioneer
only accepts bids at or above this minimum price. If no bids are at or above this minimum price
then the property does not sell. This guarantees the property owner will get at least a known
price but it could deter some potential buyers who may not want to start bidding at that amount.
- Reserve Auction. The property owner reserves the right to accept or reject any bid for the
property. The disadvantage here is that more potential buyers will not spend the time and
expense to check out the property and attend the auction when they know they may not be able to
buy the property even if they are the highest bidder.
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www.greaterpeoriahomes.com
AUCTIONS
Sponsored by Dave McMillin, Jim Maloof/Realtor®, East Peoria, IL
Copyright© 2007-2008 Greater Peoria Homes
Copyright© 2007-2008 Greater Peoria Homes
Peoria Area Real Estate Auctions: