Why has there been a tremendous increase in the use of the auction method of marketing real estate and personal property over the past several years?
Because it provides favorable results in a SHORT PERIOD of time!
- Competitive bidding often brings higher prices.
- Quick sale at current market value.
- Auctions are event oriented and draw attention.
- Sellers select terms and conditions of the sale.
- Sellers select the day and time of the sale.
- Limits high carrying cost.
- Current market value will be established.
- High impact marketing draws attention to your property providing maximum exposure and visibility to the market.
- It creates urgency and motivates buyers off the sidelines and into the game.
THE UNLIMITED MARKETPLACE
Auctions allow the public to experience the same type of excitement that is found on the floor of the commodities exchange. After the fervor of the event, sellers know their merchandise sold at prices truly representative of market value, and buyers walk away knowing they paid an amount only one bid higher than what someone else was willing to pay. Everyone wins at an auction.
The auction is not a new marketing method. The first English reference is found in the 1595 Oxford English Dictionary. Evidence records auction activity as early as 500 B.C. and during the Roman Empire.
Although auctions are fun, the reason they have been successful for thousands of years is that they work. It’s hard to imagine anything today that cannot be sold at auction. The ‘traditional’ auction merchandise that immediately comes to mind is expanding to include new types of commodities. Real estate, automobiles, repossessions and other merchandise previously overlooked as suitable auction material are all a part of today’s auction industry.
THE SELLERS’ MARKETPLACE
Converting property, possessions or inventory to cash quickly is a major benefit of the Auction Method of Marketing, but sellers also want to be assured they will get a fair market value. That’s why an auction is the best tool to meet that goal.
No less important is the flexibility of the auction method. The customer decides when and what to sell. Well-trained auctioneers use established and successful procedures to ensure maximum benefits for the seller. Before the auction takes place, the auctioneer meets with the potential seller to see what is to be auctioned and explain the services available. During this meeting, the auctioneer will ask questions to determine the seller’s expectations.
The auctioneer takes great care to make sure the auction conforms with the Uniform Commercial Code, with any city, county or state license requirements, and to verify title to the property and to notify creditors of the auction.
THE BUYERS’ MARKETPLACE
Auctions are an excellent marketplace. Buyers actually determine the final price and market value of the items purchased.
For first-time buyers, an auction may appear to be a confusion of people and merchandise, but once they become familiar with procedures, they realize it’s more like a well-rehearsed symphony.
Buyers are provided all the information needed to become informed bidders and realize the auction market sets a a fair and reasonable price for property. During the auction, auctioneers stand where they can be easily seen and often use a public address system.
As increasing bids are received, the auctioneer’s rhythmic chant becomes a series of prices. Filler words are used to maintain a pleasant flow to the chant.
Information about auctions can be found in newspapers, sale bills, brochures, etc.