How Auctions Provide Commercial Sale Alternatives

Many people associate auctions with foreclosed property, farm equipment, and vehicles that have been seized by law enforcement. There are also auctions held to sell off expensive jewelry and collectibles, famous pieces of art, and vintage vehicles. Experienced commercial auctioneers and companies provide alternatives for commercial land owners who do not want to sell property via the traditional real estate market. The benefits of selling property through a commercial land auction are contributing to the increase in the practice.

Maximum Value

Companies that specialize in conducting auctions with professionally trained commercial auctioneers have developed strategic and aggressive means of marketing that target serious buyers. This is how sellers can be assured they will receive the maximum value for the property. An auction also provides sellers with more control over the terms of the sale. Auction types are decided prior to the auction by the seller, which is often done with the advice and guidance of the company.

An absolute auction means the seller agrees to sell the property to the highest bidder at any price. If the seller is unwilling to go below a specific price, a minimum bid auction takes place. The highest bidder at or above the published minimum price is sold the property. Another option is called a with reserve auction in which the minimum price is unpublished. In this case, commercial property auctioneers highlight features that will lead to bids that reach the minimum price. If the highest bid does not meet the unpublished price, the seller is not obligated to sell the property.

Speed

Once an auction company agrees to hold an auction for commercial property, the process is completed in six to eight-weeks. The date for the auction is set, marketing efforts begin, and the property is sold on the date of the auction. This benefit appeals to many owners, especially those who are simply investors. When placed on the traditional real estate market, commercial property can linger on the listing unsold for months or even a year or two. The property or building can fall into disrepair, become vandalized, or depreciate at a rapid pace.

Certainty

This benefit assures the seller that the buyer will not back out of the deal. Property is sold as-is and where-is so there no contingencies to block the closing. Buyers are also required to submit ten percent of the buying price that is non-refundable. Closings are typically arranged for ten to forty-five days after the bid is accepted. Sellers who want to move on quickly will want to consider an auction as a feasible alternative to the traditional selling process.