Auctions

Understanding the Auction Method

Accelerated Realty, Inc. and AuctionForce’s joint venture allow us to combine the core competencies of Commercial Real Estate Specialization and Professional Auctioneering. In a free-market economy the value of a property is determined by what the purchaser is willing to pay for it. The Law of Supply and Demand drives markets toward perfect efficiency. The Auction Method establishes an environment in which a property is sold at the current and fair market price. Simply the word auction implies finality and indicates that the seller is serious. This message, coupled with a broad-based yet targeted marketing campaign drives more potential bidders to the Auction. As a result, Absolute Auctions are an excellent way of monetizing extremely difficult properties or loans that have little value and have been “written off.” Other benefits of the Auction Method Include:

• Seller chooses date of sale: This eliminates the pressure caused by time sensitive issues.
• Transparency – Live Auction is conducted “On Site” and videotaped.
• A Live On-Site Auction is the best way to create spirited bidding atmosphere and yield a higher sales price.
• Live-bid via internet or telephone expands the reach and attracts bidders that are unable to attend the day of the Auction. See Case study: Hancock Mountain
• Bidder’s Package with all relevant information and reports are available 30 days prior to the auction date. This allows the Bidders to perform due diligence before the date of the Auction.
• The Final Bid is the Market Price for the property on the day of the Auction. Any theoretical appraisal can never be as precise as the actual sale value. Even the best opinion of value is still just an opinion.
• Auctions “Subject to Lender Approval” allows the Lender the benefits of an auction and still have control of the final sales price.
• Buyer’s Premium covers the cost of Real Estate Commission.
• Buyer pays all closing costs
• Property Sold “As-is”, no contingencies
• Significant non-refundable deposit means escrow is far more likely to close.

For more information on the Auction Method please contact Ray Princiotta at 305.494.4101