I had a vendor ask me the other day if I thought an Auction might be the right way to go in selling their property. And it’s a question I get asked a lot. Here is an interesting article that I sent them, where I agree with most of it, particularly the agent’s role.
From my experiences and observations in Omaha however, most buyers have disposable income, don’t need to borrow, and can attend an auction as a cash buyer. The biggie here is that auctions are 100% transparent and if you do not have at least two buyers bidding and the reserve is met with just one buyer participating, you are never quite sure whether they would pay more money, or how much more they have left on the table. If a property doesn’t sell at auction, ie the vendor does not want to meet the market, or worse still there are no bids, there is always a resulting stigma from prospective buyers, that there is something wrong with it, or the vendor wants too much for it. Multi Offers on the other hand in a competitive situation ie Deadline Set Date Sale or Tender processes deliver outstanding results, creating the same emotional fear of loss and a call to action. If a vendor invested as much marketing money as in an Auction Process, the Deadline Set Date or Tender Sale method would reach the same buyer audience pool utilising a vendor controlled process resulting in a higher price for the property within a set time frame, with the vendor knowing that the best price has been negotiated.