The auction sale is often the best option when both time and price are of paramount importance. The versatile menu of auction services offered by Inland Real Estate Auctions, Inc. can be applied to every unique market and classification of real estate.
The accelerated marketing process, with an abbreviated time-line of 6 to 8 weeks, establishes a date-specific sale turning real estate into a liquid asset. Cash, non-contingent bids confirm sales and reduce or eliminate carrying costs associated with holding property for extended periods of time. A broad-based and intensive advertising program creates dominant market presence, immediate excitement and high demand. Limited property showings are scheduled well in advance and assemble the market which focuses attention on the asset, often freezing activity on competitive properties in the market.
The open auction creates a competitive bidding environment, momentum is upward as opposed to the downward momentum of a conventional sales approach. Market prices are achieved while meeting specific exit strategies with the use of real risk minimization techniques. No maximum offering price is established which can lead buyers to pay more than a seller may expect from conventional methods.
Other Benefits of an Auction:
- Immediate local, regional and national demand for the asset;
- The auction necessitates immediate action and attracts motivated buyers, thereby speeding up their buying decisions and creating a larger market for your real estate;
- Financial planning and forecasting become reliable;
- Defines the market for unique and difficult to value properties;
- Terms are structured to meet the sales objectives of the seller;
- The accelerated timeline of the auction stops erosion of equity by turning a low or non-earning asset to cash that can be reinvested for greater profitability.
An Open-Outcry Auction is an innovative and effective method of selling real estate. A professional real estate auctioneer, along with a number of bidder assistants, is used to promote active bidding in a ballroom setting. This approach is used when a number of bidders are expected to bid. The open and competitive nature of the bidding process increases the price level as buyers see value placed upon the property in real time. Terms and conditions of sale are pre-established, approved sales contracts are executed without modification, and substantial non-refundable deposits are collected from the high bidders.
A Sealed Bid Auction requires bidders to submit bids and certified funds (earnest money) to the offices of Inland Real Estate Auctions, Inc. prior to a pre-designated bid deadline. All bids are confidentially retained for the seller’s review and are irrevocable for a specific period of time, allowing the seller to review all offers side-by-side prior to making a sales decision.
A Sealed Bid Hybrid Auction is an innovative format which utilizes a conventional Sealed Bid format but also provides for select bidders to be notified by the Auctioneer with an opportunity to place a best and final offer (BAFO) either through a sealed format or an open auction format.
An Absolute Sale is a sale with no reserve or minimum bid and the property will be sold to the highest bidder regardless of price. An absolute auction is a strong calling card as it assures buyers that a sale will be made; therefore, buyers can justify their time and effort to investigate the property. The absolute sale acts as an enticement for bidders to participate. The absolute sale encourages the greatest level of participation and operates on the principle that competitive bidding will push incremental bids to the highest levels that the market will bear.
A Minimum Bid Sale dictates that the property will be sold at a price equal to or greater than the published minimum bid. An auction with a minimum bid is effective if the minimum bid is established significantly below the market’s expected valuation for the property. A seller who establishes a proper minimum bid sends a clear message to the market that this is a serious offering and the auction will result in a final sale of the property.
A With Reserve sale means there is no definite price at which the seller guarantees a sale to the market. Rather, a low ‘suggested opening bid’ is published and the seller reserves the right to accept or reject any and all bids usually within 48 to 72 hours following the auction.