Selling real estate at auction has advantages

PALM CITY — Selling real estate at auction isn’t the new fad. It isn’t even unique.

However, in current market conditions, many sellers are coming to find that they can fetch as much money in a short period of time selling at auction as they could in six months selling through a traditional real estate transaction. With 84 percent of sales on the Treasure Coast being cash deals, there are plenty of buyers out there waiting to compete for property and yield a greater price.

Many factors come into play when selling a piece of property and most sellers don’t realize that the auction method of marketing may be a great alternative for them. From farmland, to single family homes, to multi-million dollar waterfront estates, selling real estate at auction is proven to guarantee market value due to the following often overlooked benefits.

• The property is guaranteed to sell in 60 days:

As opposed to traditional real estate marketing, auctioning designates a date from the beginning at which the house will be sold. Setting a date forces buyers to act. This helps create a sense of urgency and speeds up the sale process. Having a set timeline also provides maximum advertising exposure. By condensing the marketing into a three-week period, auctioneers are able to make a larger impact on the target audience with a particular advertising campaign.

• There are fewer frivolous charges and overhead costs:

Because your property is guaranteed to sell in 60 days, auctions reduce the carrying costs of your property. Principle and interest, taxes, insurance and up-keep are all costs that continue to add up the longer you own your property. By selling your property at auction, at a date set by the seller, you are able to eliminate those expenses, thereby taking advantage of the time value of your money and real estate investments.

Auctions also follow the 30-day “cash closing” rule. The successful bidder signs a cash contract without the usual contingencies for financing, appraisal and inspection. All auction properties sell “as-is” as all inspections are made prior to bidding. A purchase contract without contingencies insures the property will close on time and without additional incurred expenses.

• It gives control back to the seller:

Auctions provide the seller control over the sales process. The seller sets the date and time of the sale, the terms and conditions such as deposit amounts, closing time frame, and others. By having an auction, a seller is able to demonstrate their commitment to sell and attracts a higher number of willing and able buyers. Multiple buyers competing against each other in an open and public setting for a particular property will ultimately yield a higher price.

Though these are just a few of the benefits provided by selling real estate through auction, each property is different and some are better suited for auction than others. For more information or to find out if your property is suitable for auction, reach out to the Hartman Auction Group at 772-872-6045, email info@hartmanauction.com or visit hartmanauction.com.