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AUCTION
MARKETING |
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PRIVATE
TREATY BROKERAGE |
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An Auction
begins by establishing a date, location, and terms of the
sale |
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A
traditional sale which begins by establishing an
"asking price"
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An Auction
employs an intense, accelerated marketing process. The
Marketing period required is accelerated to 60 days or
less. Auction conducted and property is closed in 90 days
or less
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A traditional sale, which has a long marketing process, the property
is likely to remain on the market for several months to years |
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An Auction
brings all the potential buyers to the sale
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A traditional sale, which waits for "an interested buyer" |
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An Auction
eliminates negotiation |
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A traditional
sale which encourages negotiation
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An Auction
encourages price increases through competitive bidding
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A traditional
sale, which most often involves a decrease from the asking
price. |
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An Auction creates non-contingency, quick sale
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A traditional
sale, which often falls through between the contract and
the closing.
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The
advertising is extensive and very visible, exclusively
showcasing your property throughout the market place..
The focus is on your property alone.
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Property
one of many being advertised and shown. Advertising is
minimal, heavy reliance on the MLS and other brokers to
find buyers |
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All
buyers are forced to act on your time schedule
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Lacks
the ability to motivate buyers, forcing you to wait for
them.
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Auction
creates a sense of urgency to promote buyer interest. It
uses the auction concept as the catalyst to provoke buyer
interest and offers
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Price
reduction encouraged to create buyer interest and activity
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Realizes
the property's fair market value. No limit on upside potential.
In weak markets, the auction creates the market and maximizes
prices by creating consumer confidence in the property.
In strong markets, it establishes new highs by capitalizing
on existing demand and extracting every dollar the market
will bear
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Is limited
because the property is unlikely to sell for more than
you ask. |
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Eliminates
guesswork in determining the asking price of the property.
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Seller
risks overpricing, and thus seeing little interest, or
under pricing and selling for less than the property is
worth.
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All
conditions of sale set by seller in advance, thus eliminating
negotiations.
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Seller
must negotiate all aspects of sale. |
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Property
sold without contingencies. Secures a contingent free contract
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Contingencies
are common. |
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Seller approves marketing budget
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The
broker is hesitant to aggressively advertise the property,
due to the uncertainty of its sale
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Disposing
of unwanted real estate quickly means no more interest
payments, property taxes, insurance and maintenance costs
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Carrying
costs, such as interest payments, property taxes, insurance
and maintenance costs are carried until property is sold,
slowly eating equity away
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An Auction
insures that all due diligence, inspections and testing
performed before sale.
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Due
diligence, inspections and testing performed after negotiations
have ended. |
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Personal
Property such as furnishings, equipment, etc can be sold
the same day
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Must
dispose of unwanted personal property after negotiations
have ended |
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Auctions
Expand Market Reach., the marketing programs that support
an auction can expose properties to a regional, national
and international audience.
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Where
efforts to sell similar real estate get the attention of
a limited local audience |
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Auctions
Freeze Conventional Activity, once the auction marketing
program begins, sales on competitive properties in the
area are virtually eliminated. This happens in a particularly
over-built market where everyone waits to see what opportunities
the auction might bring.
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Action
is virtually eliminated as people wait and see what happens
at the auction |
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