Auction Method vs. Ordinary Sale
Is an Auction the Right Choice for You?
AUCTION METHOD |
ORDINARY SALE |
| Focus is on your Property alone | Property is one of many being advertised and shown |
Buyers act on your schedule |
Little motivation for buyers – you wait for them |
Auction conducted in 45 to 60 days or less – Holding costs are contained |
May remain on the market for months or even years – Holding costs are ongoing |
| Auction creates a sense of urgency to promote buyer interest | Price reduction encouraged to create buyer interest and activity |
No limit on upside potential – price is bid upwards to realize maximum market value |
Upside potential limited by asking price – Price is usually negotiated down |
| Exclusively showcases your property throughout the market place | Minimal advertising - Heavy reliance on multiple listing type of service |
All conditions of the sale are set by the seller in advance, thus eliminating negotiations |
Seller must negotiate all aspects of the sale |
| Property sold without contingencies | Contingencies are common and can eliminate a sale at any time |
| Auction contract calls for a cash sale – Buyers are ready, willing and able to close | Contract is almost always contingent upon financing |
