Sold …to the highest bidder! If you’re in the market for purchasing real estate, you may want to consider the benefits of an auction. Real estate auctions are an accelerated process for buying properties through public sale, with many potential benefits to the buyer. Here are some of the points to consider if you want to buy land at auction:
Commitment to Sale
Real estate auctions take the stop, start, false-start out of the land buying process because sellers are committed to the sale. Purchasing property is an important investment, and buyers often invest a lot of time and resources into researching and conducting due diligence. So when sellers delay or even back out of the sale during the process (sometimes to sell to a higher offer), it not only can be frustrating, but financially costly. Auctions take this uncertainty out of the buying process, with sellers who are motivated to sell a property on a specific date. Buyers have the ability to conduct due diligence ahead of the sale, and have the confidence that the sale will move forward in an expedited manner. Whether you’re purchasing a lot for your personal home, or are a developer or builder looking for land for your next project, knowing that the seller is committed to the sale can be invaluable.
Sold, to the highest bidder! If you have clients who are anxiously awaiting the sale of their property, these words might be music to your ears. Most agents are familiar with auctions as an accelerated process for selling properties through public sale, but some are not aware of the many potential benefits to the seller…and to you, the agent. In fact, there are many reasons why real estate agents and brokers sell land at auctions.
According to the National Association of Realtors, real estate auctions can provide many benefits to agents and brokers, including:
- Generating a list of ready, qualified buyers for your sellers
- Offering current and prospective clients and customers new selling and buying options
- Increasing revenue and market share
- Enhancing your image as a full-service firm or professional
- Developing your own market niche and expertise that helps distinguish your services
- Removing pricing uncertainty by assuring that the property will be sold at its true market value
- Setting a specific date for sale and selling in a relatively short timeframe
- Exposing the property to a larger pool of potential buyers
- Attracting buyers to look at all of your listings, not just the auction listing
Going…going…gone. If you’re selling real estate, these words might be music to your ears. Real estate auctions are an accelerated process for selling properties through public sale, with many potential benefits to the seller. While auctions are often used to sell distressed properties, they can also be a fruitful way to sell non-distressed lot and land properties. Here are some of the points to consider about selling land at an auction:
Real estate auctions solidify the timeframe for the sales process. You set the date for the auction and terms for closing (often 30 days), and the timeline for your sale becomes much clearer, and typically, much faster. Whether you’ve been trying to sell your property for a long time and are tired of carrying the costs, or you’ve just put the land on the market but need a quick sale, an auction may provide the certain timing that you want. Since the sale of lots and land often takes much longer than the sale of a home, for example, a shorter, definitive timeline and process may be very appealing to you. Uncertainty is one of the most frustrating aspects of selling real estate and the auction sale eliminates much of that ambiguity – and contract extensions!
And what it all means for Home Sales, New Home Construction, Land Sales and Development
What is the 2015 real estate market going to look like? Will home sales finally soar, or are we instead going to see the market drop? Is 2015 finally the year when construction and development hit full recovery? The Great Recession has left so many professionals in the real estate industry anxious for things to be like they were before the housing markets crashed, but hiccups in 2014 unfortunately showed that the road to recovery could be slower and longer than many hoped. What do the experts think is going to happen in 2015?
The good news is that many of the housing predictions for 2015 take a positive tone, and a lot of the good feeling is being driven by the health of the overall U.S. economy. It helps that 2014 ended fairly solid, with the year being the strongest for the nation’s economic recovery since the recession. There is a general expectation for 2015 to continue this trend. A growing job market and lower fuel prices could help ignite consumer spending and the overall economy, with the nation’s GDP projected to expand by 3.1% — the highest level since 2005. Read more…
Why Every Season is Selling Season for Lots & Land
The Fall and Winter seasons can be the ideal time for you to find buyers when you are selling vacant land or residential lots. Some landowners who wish to sell land – and even well-meaning real estate pros – mistakenly take their vacant land listings off the market for a few months during this time of the year because of outdated or inapplicable beliefs about “Selling Seasons” for real estate. Read on for 5 reasons why the Fall and Winter seasons can be a great time of the year to sell residential lots and land, and learn why it may be time for you to reevaluate your strategy when it comes to the colder months…so you are not left out in the cold.
1. Buyers Search Online for Lots & Land Year Round
Today’s real estate buyers are shopping year round on the Internet, so the idea that buyers don’t shop for homes and land in the winter is antiquated.
Times have changed, and the belief that people don’t buy real estate in the Fall and Winter is partly derived from how the real estate business worked before the Internet age. In the past, searching for real estate (and vacant land in particular) involved selecting a number of potential properties (probably found by word of mouth or newspaper classified ads), then driving to all the different locations and inspecting the properties in person. Buyers just did not have the same visual resources and search tools that they have 24 hours a day via the Internet, so the process required more legwork, site visits and wasted time back then. And when winter arrived in colder climates, many landowners would take their property listing off the market because they felt like there wasn’t any use…surely buyers would not want to drive and walk through cold weather or snow to look at their property. Read more…