With today’s real estate market, it is not uncommon for a property to stay on the market for 90 to 120 days. If the seller’s financial circumstances are not an issue, this can be a patient waiting period. For a person with stressed finances, this waiting period becomes a very stressful ordeal. While the first situation is ideal, many persons are in a situation where they need to sell their property because they have been transferred and have to relocate quickly. Others may need to reduce their financial burden or settle an estate. In this situation, every day presents additional holding costs due to not selling the property.
As a hypothetical example, Sam has received a promotion at work, but he also has to relocate to another city. He has already placed an offer on a home in the new location and could keep both homes for a couple of months if he needed to. Sam’s mortgage payment is $1,600 a month and his taxes are about $300 a month. His monthly upkeep expenses (utilities, association fees, etc) are about $600 a month. His mortgage and utilities come up to around $2,500 a month. On top of that, he would like to pay off one of his credit cards from the proceeds of the home sale because the current payment is $500 a month. With this, the mortgage and utilities, the monthly holding cost is $3,000 per month. For a traditional real estate listing, this is $9,000 - $12,000 in holding costs waiting for a sale that might close if a buyer is found. Needless to say Sam would be very anxious over the situation.
Now, let’s consider the option of a real estate auction. Typically, a real estate auction will result in an accepted bid and the property should close within 30 days after the auction. Because of the additional exposure that a well-planned auction advertising campaign can bring to the property, it is likely that several qualified bidders will register and show up to bid on the day of the auction…bringing a competitive bid for the property. These are but a few of the advantages of a real estate auction (See our articles on the Benefits of Selling Real Estate at Auction and Reasons to Auction Your Real Estate). The bottom line is that Sam can enlist the services of a licensed auctioneer and have an auction which should sell his house at the fair market value…all in less time than a traditional real estate sale.
Located in Indianapolis, Indiana, the Broker Auction Team is a dedicated group of professionals with a keen interest in the accelerated marketing process of Real Estate Auction. We believe that the use of a highly educated Auction Staff utilizing state-of-the-art marketing techniques is the wave of the future.
Although sale by auction has been widely used in this country for hundreds of years, today’s successful auction company is a quite different breed. Because today’s real estate investor is more savvy than ever, so too must be our entire team. This is not your father’s auction company. Gone are the days of a cowboy hat, an ad in the Sunday paper, and a big sign to bring in bidders. Today’s auction company brings experts to your closing table, experts in the realm of internet strategies, specific target marketing, financing consultation, creative property information packets, and 1031 Tax Exchanges. We have cultivated a group of advisors that include MBA’s, experienced business owners, and marketing professionals.