Top Reasons to Sell a Property Using the Auction Method

Why the Auction Method is Something to Consider

If you’re interested in selling a property “as is, where is,” the auction method is typically the way to go. Instead of marketing a property with a set listing price in a negotiated sale, some sellers opt for the time-sensitive format for a variety of reasons.

Auction sales can work in the seller’s favor by giving him or her more control over the process. After all, the seller gets to set the terms and conditions of an auction sale. Selling a property at a true market value is arguably most feasible using the auction method, and a property can sometimes end up selling at a higher price in an auction than in a negotiated sale. Three of the biggest auction format upsides have to do with timing, exposure, and financing.

Top 3 Reasons to Try the Auction Format Instead of a Negotiated Sale

  1. The auction method speeds up the process. Because an auction is a time-sensitive sale with a set date, this format creates a sense of urgency among potential buyers. Compared to negotiated sales, auctions stimulate a need for informed buyers to act fast, encouraging competition. It may be assuring to the seller, who knows exactly when the property will sell. In negotiated sales, the seller has no idea when the sale date will arrive – it could be any number of weeks or months after the property is listed. The accelerated timeframe in the auction method means the seller enjoys a 30-45 day unconditional all cash closing. To top it off, all due diligence, inspections, and testing is performed prior to the sale.
  2. The auction method increases exposure. Using the auction format ensures an aggressive marketing program, which is accelerated due to the limited timeline leading up to an auction. This accelerated marketing strategy can leverage the seller’s advertising investment 10-20 times in a multi-property event. Since auctions involve a large number of pre-qualified prospects, this aggressive exposure in an auction marketing campaign means the property is advertised to people who are truly serious potential buyers.
  3. The auction method cuts costs and may increase value. The speedy process involved in the auction method reduces carrying costs, which include taxes and maintenance. Auctions also require potential buyers to pre-qualify for financing, meaning the sell-side agent does not have to waste time (and money) dealing with those who are not “true” potential buyers. Compared to negotiated sales where the asking price is essentially the highest amount the seller will be able to get for the property, the sky’s the limit for properties sold through the auction method.

Over all, auctions are worth considering, especially if the seller wants an accelerated timeframe, increased exposure to qualified prospects, and certain financial upsides that the auction method can provide.

SVN Auction Services is a provider of date-specific sales and special asset solutions. It encompasses an elite group of local and regional auction Advisors throughout the United States who specialize in areas such as foreclosures, tax sales, multi-properties, receiverships and bankruptcies. SVN Auction Services offers the industry’s most comprehensive spectrum of auction solutions—from rapid asset resolution and 30-day countdown asset sales to wide area and high impact/high promotion events. As part of one of the most recognized and reputable commercial real estate firms in the industry, SVN Auction Services is supported by SVN International, which features more than 190 locations serving more than 500 markets. For more information, visit SVN Auction Services.

This blog post was adapted from the SVN | Menish Auctions website

[bctt tweet=”If you’re interested in selling a property as is, where is, auction is typically the way to go. #CRE” username=”svnic”]


Leave the Marketing to Us

The SVN Platform Simplifies Marketing

Earlier this week, I got a copy of an interesting post from the CRE Outsider blog on whether or not Advisors should do their own marketing (see the article here).

The short of it is that you should and shouldn’t do your own marketing. Yes, you should set the direction and have the knowledge to ensure that you’re going in the right direction. But, no, you shouldn’t be doing the actual work to execute on the marketing campaign. Like I’ve told many of you in person, your clients care that you show up with a perfectly prepared proposal book, but they don’t care who filled in the fields or who stood at the machine and bound the book.

And that’s one of the many reasons that, after almost 18 months, I’m still obsessively jazzed about being here at SVN. If you really think about our platform, what it does is give you the tools to get your activity and your brand out there without a lot of effort on your part. You set the direction (and we even help you do that!) and our tools and other features help you make the marketing happen. Here are just a few examples…

  • You can get your listings in front of buyers and brokers on a call, YouTube and SlideShare through our National Sales Call on Monday mornings
  • Qualifying deals can be shared with Advisors across SVN through the SVN National Blast system
  • The SVN 5 Minute Marketer will print – and mail – “Just Listed” postcards for you
  • Real Capital Analytics helps you generate buyer lists
  • BuildOut syndicates deals to multiple websites, getting your listing exposed to thousands or millions of users

Sure, you might have to click a few buttons, but the system is doing the heavy lifting of the marketing work for you. You get deals, and leave the driving – or is that marketing – to us!

To learn more about how you can spend more time making deals and less time making flyers, check out our Careers page here.

[bctt tweet=”Like I’ve told many of you in person, your clients care that you show up with a perfectly prepared proposal book, but they don’t care who filled in the fields or who stood at the machine and bound the book.”]

How to Effectively Market Properties

The Two Things You Must Do to Effectively Market Properties

2015 is well underway. You clients should be back in the swing of things, which means that you are doing more proposals and taking more exclusive listings. Great!

Now, it’s time to get those listings sold, and to turn them into paychecks. In order to get them closed, you need to market. Here’s the two things you have to do in order to effectively market your properties:

  1. Call every buyer you should know.
  2. Work the entire brokerage community to get them to do #1.

Let’s get down to the details because it’s important to completely do both steps if you want to increase your closing rate.

Call Every Buyer You Should Know

There’s an extra word in this heading – should – but it’s there for a good reason. Right now, most Brokers (and possibly a few SVN® Advisors), get a listing and immediately call their top buyers. Some even call a few more. What most brokers don’t do is to call every possible buyer that they can reasonably find.

I’m not talking about finding every possible buyer in the country – we’ll cover that in the next paragraph. I’m talking about calling the person two blocks down the street that no one else calls, but that buys a building once every 25 years. If you cover them, you’ll get access to qualified buyers that no one else will touch. And, really, isn’t that what your client is paying you to do?

Work the Entire Brokerage Community

In addition to doing your best to find buyers that no one else can find, it’s also your job to make sure that every Broker in the country finds the buyers that you can’t find. That way, your best pool competes with everyone else’s likely pools to find the best possible offer for your seller.

Syndication through our online marketing tools and through electronic mail blasts are also a part of the process, but they’re only a small part.

If you want to know what you can do to energize both the SVN community and the rest of the industry, take a look at the attached infographic. It’s a how-to of everything you need to do to get your deals sold. In fact, don’t just look at it. Print it out, tape it to your wall, and keep it handy to remind you how to get ALL of your listings sold.

To learn more about the Sperry Van Ness® marketing systems and tools, click here.

SVN Value Prop