Why Do People Sell at Auction?
There are 2 primary reasons that people choose to sell at auction:
- The seller has an asset or item in high demand
- The seller needs to liquidate assets quickly to free up capital
Auctions are a unique and interesting way to liquidate assets by empowering buyers to fight peacefully for what they want.
Sometimes assets can be burdens. If you're tired of hauling the dead weight, an auction may be a good fit for you.
The benefits include:
Intensive Marketing Strategy
Choice of Sale Date
Control the Terms
Greatly Shortens the Disposition Timeline
Substantial Non-Refundable Earnest Money (Increases Certainty of Closing)
Sells "As-Is" with No Contingencies (Increases Certainty of Closing)
Assures Arms-Length Sale with Competitive Bidding
Whether you have a property in high demand or simply need to free up capital, auctioning your asset could be the best way to maximize value, get a return on your investment, or at least take a load off...
A list of questions to ask yourself before considering the auction process:
- What will I do with the money I free up from the proceeds of a quick auction sale? (Give the money to a charity, family members, do something for myself, or make a better investment?)
- Can I afford to hold on to this property and have ongoing liability, expenses, taxes, assessments etc.?
- How much of my time have I spent dealing with this property? Can I spend it on fun stuff? More productive pursuits?
- Will the property lose value if I continue to hold onto it? Am I better off selling now?
- Will selling the property be a good way to dissolve a partnership? A lingering asset from a previous marriage?
- Am I under pressure from my company to have an exit strategy for underperforming or poorly performing assets?
- Is there a lot of interest in this property? If so, do I dare to set a price and risk selling it for less than it may bring in a truly competitive sale?