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Calgary homeowners to sell their home by auction
Realtors Corner - Calgary Real Estate News | Vol. 24 No. 12 | March 23, 2006
Calgary homeowners, Shaun and Meg Clark recently bought a home in Crossfield. They told their REALTORs, "We have to sell." The Clarks decided that to insure the sale of their property, they should offer it by auction. They have stipulated that all offers must be unconditional, so buyers must be pre-approved for financing and do their due diligence before bidding.
Lately, buyers have become very frustrated when trying to buy a home. When a well-priced property comes on the market, it may typically bring thousands and often tens of thousand of dollars more than the asking price.
Under the traditional method of selling real estate, multiple offers must be kept confidential. Each buyer cannot be permitted to know the details of any competing offer.
There are many stories from buyers that have been disappointed because they lost out by one or two thousand dollars. They say that had they known they could have bought the property for more money, they certainly would have. Is the seller losing money through this process - and are the buyers losing their opportunity to buy the property?
If the buyers were buying the property by auction, they would have had the opportunity to increase their bid and buy the property. They would have won and the sellers would also have won.
The real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the sale of any property through open competitive bidding. Every bidder knows what the competition is offering and has an opportunity to better that offer if they wish.
The real estate auction is a win-win proposition for everyone involved.
Benefits to the Seller:
Buyers come prepared to buy
Quick disposal reduces long-term carrying costs,
including taxes & maintenance
Assurance that property will be sold at true market
value
Exposes the property to a large number of pre-
qualified prospects
Accelerates the sale
Creates competition among buyers - auction price
can exceed the price of a negotiated sale
Requires potential buyers to pre-qualify for
financing
The seller knows exactly when the property will
sell
Eliminates numerous and unscheduled showings
Takes the seller out of the negotiation process
Ensures an aggressive marketing program that
increases interest and visibility
Benefits to the Buyer:
Smart investments are made as properties are
usually purchased at fair market value
through competitive bidding
The buyer knows the seller is committed to sell
Buyers determine the purchase price
Auctions eliminate long negotiation periods
Auctions reduce time to purchase property
Purchasing and closing dates are known
Buyers know they are competing fairly and on the
same terms as all other buyers
Buyers receive comprehensive information on
property via due diligence package
In multi-property auctions the buyer sees many
offerings in the same place at the same time
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