subject: Should You Participate In Online Commercial Property Auctions? [print this page] If you are on the fence about participating in online commercial property auctions, you should know that there are several benefits that property owners are privy to when they conduct business this way. A few of these many benefits include a faster sales cycle, lower overall costs and the ability to fetch the highest sale price possible for their properties. Although many people may have heard of these auctions for properties, many may not be aware of how they work online; it is the online commercial real estate auctions that prove to be most beneficial.
Keeping in mind that each online auction company has their own particular methods, systems and procedures, a broker will start by gathering up all kinds of information about the property that is being sold. He or she will also collect the due diligence materials that may be needed, such as photographs of the property and other information. Together the broker and the seller will then set an aggressive minimum bid so that large pools of potential buyers will start to form.
A broker who uses the Internet to assist with the auction of the property will create a custom website for the property so that interested buyers can gather all kinds of available information on it. Having this website is extremely beneficial because the property owner does not have to compete for a buyers attention as they would with conventional real estate listings. The single property has its very own unique Web address dedicated to it instead of their being hundreds or thousands of properties listed on a single website.
In the next step, which is the marketing step, the broker will market the property and the auction, and it is during this time that the large pool of potential buyers is created and buzz about the property peaks. The buyers are motivated to make a move on the property because there is a deadline. When there is a concrete deadline that people have to act on they tend to be more aggressive in their actions. It is the definitive deadline that keeps potential buyers motivated.
On auction day, the bidders compete for the property this results in the highest possible price for the owner/seller. A purchase agreement is then signed between the acting parties. If you as a seller are concerned with a lack of serious buyers, keep in mind that buyers should be required to submit a winners deposit to discourage casual bidding. The best online companies will serve as an excellent platform for commercial property auctions that allows brokers to sell a clients real estate quickly and for the best price possible.
by: Phoenix Delray
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