Tuesday, August 28, 2012

Why Do Sellers Turn to Auction?

After trying to sell their land traditionally on the Multiple Listing Service without success, owners turn to auction. Auction is a very efficient way to sell a property knowing that the buying public is aware that the owner is committed to a direct and immediate sale. Land owners prefer to sell their property in an auction because of the advantages it presents.

The publicity or marketing advantage that an auction has is one of the biggest attractions. Land owners who want to sell the property quickly can directly meet the eager buyers. They can deliver the property details easily and convince buyers to close the deal. In an auction, the land owner is protected by the reserve price. The owner and the auctioneer set the reserve price after assessing the potential buyers’ bidding strength and the property’s market value. The buying public should bid no less than the reserve price and in accordance with the terms and conditions set by the owner or vendor.

Properties being sold at an auction have an unconditional contract which means the bid winner should proceed with the settlement on the agreed date. The seller does not have to wait for the buyer to obtain financing from the bank. Buyers from an auction are ready and willing to buy. They are also pre-qualified which means before they can participate in an auction they are required to deposit a certain amount or certified cashier’s check according to the NAA (National Auctioneers Association).

The auction process typically takes 4-6 weeks. It involves the property being held by your chosen auctioneer within the given time frame wherein the auctioneer will market the property and find potential buyers. It is clear that placing the property in an auction has its advantages but what if you don’t have 4-6 weeks? What if you need to sell your property as quickly as possible? Fortunately, you have another option. You can sell your land to a private land investor like Lucas Properties LLC. With Lucas Properties, you don’t have to wait.

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