Auction Is A Great Method Of Sale To Use In Commercial Property And Investment Sales

Not all commercial investment properties should be auctioned, but the auction method of sale does have real advantages if the property is just right and the market is accepting of that method of sale.

(prHWY.com) March 23, 2013 - Florida, FL -- Florida, Mar 23, 2013 - Not all commercial investment properties should be auctioned, but the auction method of sale does have real advantages if the property is just right and the market is accepting of that method of sale.

The key governing factors to determine if auction is a real chance or choice for the property owner are the current levels of enquiry for that property type, and the prevailing business sentiment. If this is the case then you can look further at auction.

In a quiet market, you would only choose an auction method of sale if the property was so unique that it would still create special interest and pull fresh and new enquiry. In that case all of the above points would also have to be active in the property.
If the market is quiet and slow then the auction method of sale can be a poor choice of marketing strategy. It can waste a lot of time for everyone concerned, vendors marketing money, and produce a stale and difficult listing to sell at a later time. An unsold auction property will immediately come back into the market at a price to be set by the client and that price will have to be realistic given local comparable market evidence. To do otherwise is a recipe for a dead listing.

Commercial Real Estate Auction Companies - Some situations and forced sales dictate the auction method of sale regardless of other sale methods available simply because it proves that the market price obtained is the best in the local area at the time. Receivers and financiers are usually obligated to use this method of sale in the first instance.

Let's however say that the property could and should be marketed by auction because all the checks and balances say that it is the preferred method of sale.
An intensive marketing campaign that moves the buyers to action.

The seller does not have to make a decision on price until close to the day of auction. On that basis the seller can make an informed price decision that reflects the feedback from the market and the inspections that have been undertaken.

Should a person want to buy the property before auction, then offers can be entertained and communicated to the seller as appropriate. The terms and conditions of an auction method of sale are at the seller's discretion and set as part of taking the property to the market. Do not overlook the advantages of auctioning a commercial property. Just make sure all the other existing elements are in support of that method of sale before you start.


About the Author:

Commercial Real Estate Auction Companies - Fortna Auctioneers & Marketing Group is a creative, innovative, people-oriented and technologically-savvy real estate auction firm. Our work consistently delivers personal satisfaction and success, resulting in mutual pride by all parties involved in the sale.
Contact Details:
Fortna Auctioneers & Marketing Group
26 E. Main Street * Annville, PA 17003
Phone: 717.867.4451
E-mail: auctions@fortnaauctioneers.com

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