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AUCTIONS
Work Best When There's:
- A changing market
- A dull market; too much product but buyer interest is expressed
- Not enough of the property type (unique, lake front, etc.)
- An emerging market - new developments could kick off a sales program, once some of the properties were auctioned
- A seller's market where there is known high demand and a lot of competition can take place
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Seller - A good auction situation is one where the seller:
- Needs immediate cash
- Has a partnership or marriage break-up
- Is moving out of the state
- Wants to liquidate an estate
- Is retiring
- Is an auction-minded seller
- Has a listing that is about to expire
- Has already purchased another house
- Knows the auction will bring fair market price
- Han financial problems
- Has high carrying costs on the property
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Property - A good auction property is one that:
- Has a lot of equity (25% or more)
- Is unique - there is enough buyer / market interest to encourage competition (unique properties are difficult to appraise)
- Has a lot of high carrying costs for the owner
- Is vacant - vacant properties may encourage vandalism
- Is difficult to appraise
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