Some in our industry are under the impression that they must have the property auctioned when they need to sell a property quickly.
This is never the case.
Before I explain why let me provide you with a quick background. At Geffen Real Estate, we have experience conducting real estate auctions. And so, if you wish to auction your property and have not done so with us before, you are welcome to give us a try.
However, if your goal is a quick sale, all you need to do is work with your real estate broker to price the property well below the comparables, and list it on the MLS with a relatively short deadline for offer submission, require that offers are cash only and are non-contingent. You can also request a larger EMD, such as 10%, to weed out the weaker buyers.
The results are superior to those of an auction! How so?
Either way, the property is listed on the MLS well below the comparables.
Either way, you can choose to accept cash offers only. Just state so in the MLS!
Either way, you can define when a property will go under contract. How? Specify in the MLS a deadline for offers.
Either way, you can require a quick closing. How? Specify a 10-day closing in the seller’s counter.
So, what’s the advantage of not selling at auction if everything is the same?
Some people may not be able to attend the auction on auction day, but they all can submit their offers at their convenience by a specified date in the MLS! And so, the pool of potential buyers is increased, as is the competition.
And if you think there is more pressure placed on buyers at an auction, remember that buyers are typically investors, and they have their limits calculated before arriving at the auction. They can be pushed to the same limits via a set of counters if your agent is experienced and knows what they are doing.
Orit Gadish is a member of the National Auctioneers Association.