An auction can be just the kick off you were hoping for to start an outpouring of sales in that new housing addition, or condominium development. There are a number of them going up in my neck of the woods. Unfortunately the slow market has delayed building for some, and they sit empty and half done. Similarly, a neighborhood of condos which had been being rented, each went up for sale. They have been on the market for almost two years yet stand with less than fifty percent sold. This situation has given over to yet another problem for both the buyers and sellers. The first of the condos sold for one price, and the next for thousands less, and the next for thousands less than that. The actual selling price for these properties will speak louder than the asking price, and buyers will expect a deal from now on. This situation costs the initial buyers into the neighborhood thousands of dollars in lost equity, and it costs the sellers, either in by lost revenue in sales, or by maintenance of empty properties.
If these properties had been sold initially by auction each one could have brought a fair price, and fewer could have been left open. It is always difficult to appraise a new development. This includes a standing development that has never gone to sale. An appraiser will always appraise, but can not answer for what the market will actually bear. An auction answers all of these questions and sells much more efficiently. An auction is also an excellent advertisement. Especially when a market is saturated, it helps to add bells and whistles to an event. This is particularly important for real estate which is long standing but only recently for sale.
Talk to those builders and sellers of new neighborhoods and developments about the pros of selling by auction in this market, and move those properties fast!
Comments(0)