Real estate auctions are essential to the real estate market. This is because they fill a particular niche and serve to fill in the gaps left by more traditional sale methods.
As reported by real estate auction companies themselves, a great portion of the auctioned real estate is sold by property developers, who are able to sell 70 to 80 percent of the developed property. However, developers are often left in a conundrum about what to do with the remaining 20 to 30 percent of properties; of which, in left unsold, they would accrue interest costs without bringing in new revenue. Auctioneers fill the 20 to 30 remaining percent of property sales, and real estate auctions typically bring in 75 to 100 percent of the original asking price of the remaining unsold properties. These properties are often sold very quickly, and the speed at which they can sell the properties is only limited by “the seller’s reluctance to sell for low prices” or reluctance to pull the trigger on a sale for whatever reason (Oliver and Murphy 1986:110).
As discussed previously, online real estate auctions are a great tool to get full, and even above, market value on properties, and because they combine the benefits of more traditional auction methods they are great for both buyers and sellers. The following are just a few of the benefits of online real estate auctions for buyers, sellers, and auctioneers.
- No long, burdensome, time-consuming negotiations.
- Buyers have complete control over the sales price.
- Buyers know exact opening and closing date.
- Buyers compete on same terms as all other potential buyers.
- Property is sold quickly and eliminates the long-terms costs, including maintenance, debt service, and taxes of an unsold property.
- It’s a “true market forum,” where property only sold at highest bidding price.
- Sellers know the exact timeframe of the sale. The sale occurs when bidding closes. Sellers are then able to move onto their other investments without worrying about when the property will be taken off the market.
- Auctioneers have no cost for marketing, as the seller incurs marketing costs.
- Auctioneers typically close more sales than traditional real estate agents.
There are many more benefits to buyers, sellers, and auctioneers than we have space to list. What’s important to remember is that real estate auctions ensure fast sales of properties at market value, where all parties involved negotiate on fair terms, allowing for a great degree of autonomy and freedom in the sales process. Auctions are a great option for buying and selling real estate and the online auction is the ideal method, combining the benefits of traditional methods in the vast, free marketplace that is the World Wide Web.
Here at Beloit Auction & Realty we strive to provide you with the best property listings for investors and potential homeowners in Illinois and Wisconsin. We believe in the benefits of online real estate auctions to all parties involved, and will keep working to provide the best possible online experience for potential customers looking to buy or sell in the states of Illinois and Wisconsin. Thank you for your time and we really appreciate your business!
See you at the auction!