Contrary to the outdated “fire-sale” concept, auction represents a positive and informed business decision, and becomes an exciting event where bidders compete equally and act in their own interest. The seller has the opportunity to obtain not only a willing buyer, but also the best of all willing buyers, one that has been stimulated by a desire for seller’s property and actively competes with other bidders to obtain that property.
Tumminello Auction believes that a properly marketed, professionally conducted, public, open auction will invariably produce a fair market sale price. We believe that the high bid received at the auction, when all bidders are afforded the equal opportunity to make their “last and best bid”, represents the ultimate appraisal of the fair market value of the property. All current and new prospects will be forced to the point of decision and be required to compete openly and aggressively, if they are to win, at a public auction. No other method of sale can produce comparable urgency and competition.
Auction will stimulate and accelerate the sale cycle unlike other sales method that will allow you to reap return on capital investment more quickly.
Recognizing the importance of ongoing costs and/or the loss of return on capital in idle assets, the marketplace increasingly perceives the importance of the time value of money. In response, the volume of sales by auction increases as a percentage of the total U.S. Real Estate sales and is projected to reach a significant percentage of total sales, early in the 21st century, according to the National Association of Realtors (NAR).
Benefits of Selling Property at Auction
- Auction offers the opportunity for local, regional and even national exposure which outperforms ordinary advertising for real estate properties.
- A true competitive bidding environment creates greater potential for higher sales revenue than typical sales methods (which generate little or no buyer competition).
- Auction adds a sense of buyer urgency, motivation to act and (by bringing all buyers together on auction day) to actively compete for your properties.
- Auctions are NOW events – focusing the attention of the market to YOUR property
- Buyer pays the commission, title and closing fees (typically paid for by the seller)
- Cost-effective, accelerated method of sale
- Exposure of the property to a large number of pre-qualified prospects
- You pick day and time of sale and have the freedom to plan your next step
- 30 days or less to close
- Non contingent offers- not contigent on financing, appraisal or inspection.
- Sold on your terms, no negotiating
- Ensures an aggressive marketing program that increases interest and visibility
- Buyers come prepared to buy
- Auction creates competition among buyers
- Auction price can exceed the price of a negotiated sale
- Realizing the true market value for the property
- No price ceiling
- It requires potential buyers to pre-qualify for financing
- It eliminates numerous and unscheduled showings
- Competition between other similar properties in your area eliminated
- Timely sale reduces long-term carrying costs – including taxes and maintenance
Real Estate Auction Results
The auction method will likely procure a higher net return than any other sale method, considering the time value of money, maximization of marketplace interest and buyer competition.