I am asked a lot about the differences between auction and traditional brokerage. Below are some of them.
Auction Event |
Traditional Brokerage |
Focus on your property alone |
Property is one of many |
Results in 30-60 days |
Market time may be extensive |
Buyers are on your timeline |
You wait on the buyers |
Auction provides catalyst to promote buyer interest |
Price reductions utilized to create buyer interest |
Realizes property true market value – No limit to upside potential |
Potential is limited due to asking price |
Eliminates guesswork of determining asking price |
Seller risks overpricing and increasing holding time or under pricing and selling short |
All conditions are set in advance – no negotiations |
Seller negotiates all aspects of the sale |
Property is sold with no contingencies |
Contingencies are common |
Pre-qualified buyers |
Buyers qualify after contract |
Multiple offers are presented to seller before and during the auction |
Few offers are received, multiple offers are rare |
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