Major Advantages of Real Estate Auctions over Conventional Listing

Auctions have many advantages for the seller over conventional listing methods.

for saleReal estate auctions offer many advantages in today’s market. Sellers typically prefer not to wait months or even years to receive an acceptable offer on their property. As a seller, you ideally want an offer as quickly as possible to turn a page in life and to move on. The auction method of sale is the only suitable choice for that situation. Selling real estate by auction is perfect for sellers who need to sell quickly but receive market value. The auction method of marketing is extremely important to establish market price on unique or large properties with a very small pool of potential buyers. To put it simply, a real estate auction establishes true market value of a specific property in a specific marketplace on a specific day.

The benefits of real estate auction greatly outweigh the mainstream listing method in many cases.

Put the Markets Focus on YOUR Property – An auction showcases your property to the marketplace, providing maximum visibility to the target market. Potential buyers must decide on your property first as it is date certain and will not be on the market past the auction date. In a conventional sale environment, your property will just be one of many (currently over 20,000 on our local system) that are minimally advertised in the Multiple Listing Service (MLS). At Alliance we belong to four of the major MLS systems in Texas. We place your auction on each system to notify all real estate professionals that your property will be sold at auction and invite them to register their buyers.

Lightening Fast Market Price –  Real estate auctions offer a marketing timeline for a residential property of 30 days, a large ranch takes 60 to 90 days. Mainstream listing methods typically take months for single family homes and years for large ranches. Real estate auctions compress the marketing timeline and notify all potential buyers that auction day is the day to buy.

“Real Estate Auctions take the control away from the buyer and gives it back to the seller”

The Sky is The Limit –  An auction does not have a ceiling when it comes to price. I doubt any auctioneer in World History has ever said “I’m stopping the bidding, it’s too high.” Auctions allow the market to speak for itself, that’s why world record prices are established at auction not by seller pricing. Conventional listing methods allow the highest possible price to be capped by the seller´s asking price.

Contingencies? We Don’t Need No Stinkin’ Contingencies – Properties offered at auction are sold “as-is”. This means the high bidder cannot back-out of the auction purchase contract without risking their escrow money because of inspections or lack of financing. Experts have estimated conventional sales have a fallout rate as high as 50% because of contingencies. This wears on the seller’s emotions and lengthens the time it will take to sell their property even more.

No Negotiation Zone – The auction method of marketing real estate pits buyer against buyer. This allows the seller to sit back and enjoy the escalation of price since the terms and conditions of the sale were established by the seller prior to the auction. Conventional sales processes pit the buyer and seller against each other causing an anxiety-ridden back and forth, sometimes for days or weeks. Many times, this results in strained relations between the buyer and seller even after negotiations have been settled.

True Market Value, NOW –  Markets ebb and flow faster and more often than ever before in World History. Real estate values can drop dramatically over the span of a 6 or 12 month listing agreement. When you are ready to sell, real estate auctions provide the catalyst to determine the true market value of your property within 60-90 days. All too often the conventional listing process starts out with overpricing a property immediately killing the interest of potential and serious buyers. At an auction, the fair market value of a property is established and goes up from there.

Timing, It’s Everything –  Real estate auctions allow the seller to control the marketing process on their chosen timeline. Conventional sales methods guarantee that sellers will play the waiting game. Sellers will wait on buyers to show interest, wait on them to come see your property, wait on them to make an offer, wait on them to accept your counter offer and wait on the option period to expire. But with an auction you have more control. Auctions are the fastest way to seriously move real estate because much of the waiting is simply eliminated.

Offers, Let’s Get a Bushel Basket of ‘em – In a conventional listing you rarely get multiple offers. If you do it is likely a good sign that you are under-priced. Typically, you can expect a painstaking process of waiting for an acceptable offer from a qualified buyer. Industry experts predict the average listing gets nearly three offers before an acceptable offer is made, but those offers are not at the same time. With an auction, you will get many offers presented on auction day until the highest and best offer is determined by the auctioneer. That’s the only one you wanted when you decided to sell.

Don´t waste time on often ineffective conventional listing process. Selling real estate by auction is the new way to get it done.

Alliance Team Comes Through for Erath County Taxpayers

Auctioneers Swap Retired Equipment for Cash. Taxpayers win.

Alliance Auctioneers hosted a heavy equipment and vehicle auction this past Saturday. Erath County Commissioners consigned retired and surplus equipment that was sold to the highest bidder. A few notable items include: a 2000 CAT 345BL Excavator for $49,000, a CAT 953C Track Loader for $39,000, a 2014 CAT 272D Skid Steer for $34,100 and a 1992 HUMVEE brought $16,500. We would like to thank the 311 registered bidders from 12 states and three countries that participated in the auction and Erath County for allowing us to work for them.

The Alliance team builds redundancies and what-ifs into all major components of our auctions. It is never fun to actually have an occasion to engage those plans. While our mobile office trailer generator had recently been serviced and had run like a top Wednesday – Friday it let us know on Saturday morning that it really wanted to stay in bed. Somehow, something had drained the battery overnight. No big deal, a quick boost off with a pick-up and we were off and running – so we thought. The battery was so weak that when certain printers would get ready to print it would kill the generator. Again, no problem we called in a back-up generator and were up and running with full functionality right before auction time.

Once the auction started we realized that our cell service providers signal had gone from four bars all week to one bar and slow if any data service at the location. Once again, we enacted our back-up plan and hard wired into the neighboring business’ internet and relayed the bid information from the computer to the sound truck.

Murphy’s Law…

It seemed everything that could go wrong mechanically did. However, our team functioned with a high degree of professionalism and a “Get it done attitude”. This attitude and teamwork allowed us to achieve much better than average prices for the equipment on hand.

Thanks again for all who participated and thanks to a great Alliance Team effort! On to the next auction…

 

heavy equipment and vehicle auctionThere was some great news. Along with our friends from Lone Star Ag Credit we were able to raise nearly $1,000 for Backpack Buddies. Backpack Buddies sends meals home with school children over the weekend that might not have a meal otherwise. Alliance is proud to support our community and the many deserving charity and benefit events that make our city a great place to live.

Welcome

Alliance Auctioneers teamWelcome to the new and improved Alliance Auctioneers website.

Our team has known for some time that we needed to revamp our site. As with anything in business, it just takes time and money. When we decided to move forward wanted to do three things: 1) provide you with information about upcoming auctions, 2) educate you about the auction process and, 3) show you who we are as auctioneers.

This new site is a success! It provides you a portal to bid on items and learn more about our industry as well us who we are as professional auctioneers. Today’s public is not as versed in auction knowledge as previous generations. Much of that gap comes from more people growing up in urban areas versus farm or rural areas. Farm and rural areas have historically had more auction activity where young people were exposed to live auctions. To help you become comfortable with the auction process we want this page to be an educational resource into the exciting world of buying and selling by auction utilizing professional auctioneers.

Alliance never wants the fear of the unknown to prevent someone from attending any live auction event. Therefore, we are dedicating a large portion of this website to educating the you. As time goes on you will see short educational videos, pictures and blog stories of auction successes and failures from around the auction globe as well as other auction and auctioneer educational content.

No Experience needed…

If you are new to auctions we invite you to learn from our website and visit us at upcoming auctions. Upon arriving at any of our auctions simply inform any uniformed team member that this is your first auction. You will be introduced and paired with one of our bid assistants that will walk you through the process. Our bid assistants will hold your hand during your first few bids until you are ready to fly solo.

We hope you enjoy our new website and we look forward to seeing you at an upcoming auction very soon.

Biddingly yours,
The Alliance Auction Team