The new way to take part in commercial real estate auctions these days is to participate online. It is expected that the popularity of these types of auctions will continue to increase, with buyers and sellers benefitting from the efficiency and unlimited reach of the Internet. There are websites available that create auctions for commercial real estate, and brokers and owners take advantage of the opportunity to market their properties to qualified buyers in ways that are convenient and effective.
One of the most frequently asked questions about commercial online real estate auctions is what the best way is to introduce owners to the idea of selling at auction instead of by more traditional means. For owners to become interested enough to seriously consider an auction, he or she needs to know that this way of selling a property has a track record of faster sales cycles and deals that close at the highest prices for the sellers.
Anyone with assets in the real estate market is well suited for these real estate auctions. Sellers who are motivated and need closing to happen quickly will find these auctions to their benefit. For instance, those who are facing loan maturity or owners who want to convert property into cash would prosper. If you think you may be interested in buying or selling online in this way, there are some things you need to know about what happens.
In a stagnant market, buyers are still very much active in real estate auctions because there are deadlines. Motivating these buyers is key, and what better way to motivate than to instill deadlines? It is important that the starting bid be set fairly low for a couple of reasons.
Auctions are most profitable and successful when a large number of peoplee bid on the properties. With a lower minimum bid, more buyers will be apt to get in on the bidding, potentially driving up the price a bit. Usually, brokers will recommend that the minimum starting bid be set at least at one half of the original asking price.
Sometimes an owner will consider selling using more traditional methods as opposed to holding an auction for commercial real estate. However, it should be stressed that for todays market, the online auction format will yield optimal results. To reassure sellers that only serious buyers will take part in the real estate auctions, they will be required to submit a Winners Deposit, which is non refundable for the winning bidder in order to discourage any casual bidding that may otherwise take place.