The popularity of auction sales of real estates is increasing day by day despite the dominance of the traditional process of real estate selling. Before these auctions were classed as dishonour sales done by the distressed retailers when there was no other way to annihilate, exterminate a property. But this view has changed as the number of real estate auctions are increasing day by day because sellers of residential as well as commercial properties are opting to sell their property directly or turning to real real estate broker houses to get top price as every market rates from the auctions. advogado advocacia imoveis em leilao de imoveis rio de janeiro
Auction opportunity occurs if a seller’s mind is auction oriented with a hope that the property will fetch a reasonable market price. To get a fair price, his equity position in the auctioned property should be strong. Having a strong value position in the property, he will save the expense of paying a sales commission payment. The time of auctioning should be perfect, when industry is soaring high. The auctioneer should also try to avoid bearing high carrying costs associated with the exact property.
A profitable public sale opportunity is created when there is limited resource of a particular type of property whose demand in real estate market is relatively high and also the market is declining with limited buyer’s interest in this traditional sales process.
When a property is offered for auctioned, a feeling of urgency comes up to take the interested functions together over a particular day and the sales process creates a sales price through competitive bidding among the participating parties.
By the begining of times of real estate sale only the properties in bad conditions or put through to foreclosure were auctioned. But now sellers are shifting to real real estate auctions to sell their homes. This transformation has occurred because the early believe a seller will not take the chance of auctioning his property at a lesser price than its market value has changed. Real property auctioneers are at a liberty to put a minimum amount price which is somewhat more than its market value that he will receive in any case. Moreover by setting a minimum price, he will no much longer have to deal with the risk of buying back the exact property if it does not reach that price and will also save the price tag on paying the required sales commission to the auction house.
Various real estate owners opt to go for an immediate auction rather than going to an auction houses to avoid payment of sales commission to real house agents which is about 8-10 percent of the property’s value. Also the property owners have complete control on the public auction sales process. This can be essential when a real real estate takes lot of time to market and the owner is represented by a real estate agent or broker. Many times, it is wise for a real estate owner to auction a property not in use to minimize down maintenance expenses. True estate auction is an exciting event both for the auctioneer and the bidding parties therefore they are always well joined.
Since auction is the best way to get true their market value for the real estate, the magic of your exciting real property auction works for the marketing of these properties for sale. Onus beds down on the auctioneer to produce demand or an desire to make a put money in the buyers/bidders head also to attract the attention of the potential buyers/bidders. The potential buyers of the house are then registered after it is ensured that they will be financially qualified. It is to be ensured that a considerable sum is paid by the purchaser as a down payment which is non refundable and both parties are inclined to close the offer as soon as possible. It is necessary to make certain prior to auction that the buyer is financially secure so that the retailer will not have to wait for obtaining the complete payment. Many times it is found that real real estate auctions remain incomplete because the buyer or successful bidder is turned down for mortgages.
The subsequent factors should be stored in mind before a real estate is auctioned by the property owner-
. He should talk to experienced and professional auction advisor who have specialized in real estate auctioning.
. That should be ensured that the marketing campaign of the auction event concentrated properly to have a high impact.
. Importance should be given on immediate mail marketing to targeted bidders/buyers.
. The auction event should be advertised in print and music aesthetic media to have a greater impact. If possible the consignment should be assigned to a most respected advertising agency to make the ad campaign more attractive.