PSA: Not All Auctions are Fire Sales!
Often, when people think of auctions, they immediately think 'fire sale'. While auctioning is a great way to unload assets or even property quickly, not every estate auction is done so because of the need for a fire sale. In fact, auctioning offers many benefits to sellers that often aren't known. This week, we're sharing with you information on what a fire sale is, and the difference between a fire sale and an auction, plus some of the pros of auctioning!
What Is a Fire Sale?
A fire sale consists of selling property at heavily discounted prices. The term 'fire sale' originally referred to the discount sale of goods that were damaged by fire. Now, it more commonly refers to any sale where the seller is in financial distress and must move assets or property quickly to cover their debt. In the context of the financial markets, a fire sale refers to a situation where securities are trading well below their intrinsic value. Unfortunately, this term is often correlated with auctioning, which truly isn't always the case.
Selling through Auction
Very rarely are the sellers that choose to auction assets and real estate in a predicament that requires a fire sale as their only option. Auctioning content and property offers several great benefits to sellers that traditional real estate may not. It’s a fast and hassle-free alternative to attempting to sell your assets or home by yourself. In its most basic form, a real estate auction occurs when qualified buyers submit competing offers on site or online, resulting in the sale of the asset to the highest bidder. A house sold at auction can be offered “with reserve,” or “absolute” (no reserve). A reserve is the lowest bid that a seller is willing to accept for the property and is established with the auction company in advance.
Before the auction, professional real estate auction companies, such as Don Rose Auction and Realty, work to aggressively market the assets or property in a variety of ways to generate maximum interest. Extensive signage, direct mail, print, online advertising, social media, telemarketing and other channels are all used to promote the property and notify potential buyers of the upcoming auction.
The pros of selling a home through auction include:
One Call Does It All!
Don Rose Auction and Realty is a one-stop shop for all your downsizing, move management and transition needs. We help get the right price for your property, while handling every detail of your new transition. We understand the important details for a stress-free move management solution. If you're still not sold on the idea of auctioning, don't forget we also provide full-service real estate services as well. One call really does do it all at Don Rose Auction & Realty!
What Is a Fire Sale?
A fire sale consists of selling property at heavily discounted prices. The term 'fire sale' originally referred to the discount sale of goods that were damaged by fire. Now, it more commonly refers to any sale where the seller is in financial distress and must move assets or property quickly to cover their debt. In the context of the financial markets, a fire sale refers to a situation where securities are trading well below their intrinsic value. Unfortunately, this term is often correlated with auctioning, which truly isn't always the case.
Selling through Auction
Very rarely are the sellers that choose to auction assets and real estate in a predicament that requires a fire sale as their only option. Auctioning content and property offers several great benefits to sellers that traditional real estate may not. It’s a fast and hassle-free alternative to attempting to sell your assets or home by yourself. In its most basic form, a real estate auction occurs when qualified buyers submit competing offers on site or online, resulting in the sale of the asset to the highest bidder. A house sold at auction can be offered “with reserve,” or “absolute” (no reserve). A reserve is the lowest bid that a seller is willing to accept for the property and is established with the auction company in advance.
Before the auction, professional real estate auction companies, such as Don Rose Auction and Realty, work to aggressively market the assets or property in a variety of ways to generate maximum interest. Extensive signage, direct mail, print, online advertising, social media, telemarketing and other channels are all used to promote the property and notify potential buyers of the upcoming auction.
The pros of selling a home through auction include:
- You enjoy simple sales process that requires no negotiating on your end.
- The buyer pays all the real estate commissions (and a non-refundable deposit!).
- The auction deadline creates buyer urgency.
- The typical timeline is 30 days or less which eliminates carrying costs faster.
- You set the terms and day of your auction so that you can plan your life accordingly.
- The sale isn’t contingent on inspections and appraisals.
- Buyers can’t ask you to do additional work or pay additional expenses since properties sell as-is.
- The competitive bidding process helps you receive the true market value for your house.
- Experienced professionals handle all the marketing, promotion, paperwork and the auction event.
Don Rose Auction and Realty is a one-stop shop for all your downsizing, move management and transition needs. We help get the right price for your property, while handling every detail of your new transition. We understand the important details for a stress-free move management solution. If you're still not sold on the idea of auctioning, don't forget we also provide full-service real estate services as well. One call really does do it all at Don Rose Auction & Realty!
Phone: 419-481-6333
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