Differences Between Brokerage & Auction

By
Commercial Real Estate Agent

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

Posted by

Richard Kruse, Managing Director

Gryphon Parker, LLC

Sperry Van Ness Ohio / Gryphon Parker

Parker Kruse Asset Management

Gryphon Auction Group

90 Northwoods Blvd., Columbus, OH 43235

Phone 614.774.4118

 

rfk@svn.com I www.svngp.com I www.svn.com I www.svnauctions.com

 

About Richard Kruse

 

Mr. Kruse began his real estate career full time in Virginia in 1997.  Over the past 17 years, he has conducted real estate and equipment sales across the country.  In August of 2003, Mr. Kruse, in partnership with his wife Melissa, opened Gryphon Asset Advisors, the predecessor to Gryphon USA., Ltd.  In June of 2014, Kruse and Shawn Parker formed Sperry Van Ness Gryphon Parker Commercial Realty and Parker Kruse Asset Management.  Prior to July, Kruse and Parker were each others largest competitor.

 

In addition to sitting on the Ohio Auctioneers Commission, Mr. Kruse leads Sperry Van Ness Auction Services efforts in the State of Ohio, teaches at the Ohio Auction School and is regularly consulted as an expert in auctions and distressed assets by Columbus Business First and the Columbus Dispatch.  He is an active member CenterPoint Church and lives with his wife, Melissa, and daughter, Savannah, in North Columbus. 

 

About Gryphon Parker, LLC

 

 

Gryphon Parker, LLC is a multi-faceted group of companies operating under the names Parker Kruse Asset Management, Sperry Van Ness Gryphon Parker, Gryphon Auction Group & Parker Realty. The entities providing distressed asset management, real estate brokerage, management, leasing and auction services throughout the State of Ohio. The SVN Gryphon Parker Special Assets Group, working closely with Parker Kruse Asset Management, advises financial institutions, borrowers and the Courts on troubled asset administration throughout the United States.

Comments (2)

Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Rich....this is well done. The side by side just makes it a reading breeze...Thank U

Jan 28, 2015 10:58 PM
Raymond E. Camp
Ontario, NY
Licensed Real Estate Salesperson Greater Rochester

Good morning Richard,

If you are talking a true action house than the days on market is correct.

Some of the new internet auction sites are generally longer to get the price they are looking for.

Make yourself agreat day.

Jan 28, 2015 11:06 PM