Hunting for Your Buyer
Myth #2 – Are auctions a last resort and only for distress properties?
Many people feel that auctions are a last resort and are only for distress properties. What is your opinion?
Auctions can be a viable marketing tool for any situation. What I can offer you in an auction is speed, wide spread media advertisement, local knowledge of investors and a unique sales method.
Regarding real estate, I am generally involved in a piece of property for 90 – 120 days. I have to get my team up and running quickly and do not have time to sit around and wait for a buyer to come to me. We go hunt the buyer. Another way to put it is we shop the property not the buyer. I will not show a buyer 100 different properties, I show 100 buyers your property.
Auctions are a tool. They do not fit every seller or every market. However, they can add an option that most sellers are not educated about. Another way to look at it is if you list your real estate you set a price and expect to get 1 or 2 offers. With an auction you set a floor on the price, the reserve amount, but not a cap. The price will go up as the buyers place their bids. The bid price is seen by all bidders giving them time to up their offer if they choose to. The auction does not end until the last person bids.
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