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