The Many Benefits of Real Estate Auctions

Residential home auctions, Commercial property auctions, Performing and Non-Performing Note auctions, new home and new construction auctions and land auctions offer many advantages to both buyer and seller.

Some advantages such auctions offer the seller are:

• Property sells quickly
• Bidders can be pre-qualified for financing
• Property is presented to many prospective buyers at once
• Expenses stop accruing
• Bids are competitive
• A starting bid versus a minimum bid can be set to drive a selling price
• here are no aadvertising costs—which makes it easy to list all property types including residential, commercial, multi-family property auctions and more.
• Foreclosed homes can be put back in the hands of buyers and investors where they belong.
  foreclosure property auction, which benefits the bank but harms the mortgage holder's credit.)

Some of the advantages the buyer will see from auctions such as home and condo auctions, retail property auctions, and office building auctions, are:

• No closing delays for property inspection and appraisals, which are required to have been done prior to the auction
• No lengthy negotiation process
• Wide variety of properties from which to choose
• Considerable seller motivation
• Ample opportunity to inspect property prior to auction time
• With some auction types, open bidding in a live setting, which helps the buyer bid more strategically
• Even with online bidding, terms for all bidders, are clearly stated in the auction materials and here on Auction.com
• A low starting bid allows bidding by all interested buyers
• Bidders can set their own price and bid to that limit.

In general, real property auctions, including land auctions, greatly simplify and speed up the buying and selling process. Paperwork for acreage auctions, city lot auctions, new construction home auctions, home site auctions, and other auction types are handled right at the live auction event or online through digital documentation, and the sale typically closes in 30-45 days for homes and even less for notes or cash only deals.

Bank-owned property auctions offer particularly good bargains for buyers. Often referred to as REO property auctions because they auction off what are known as real-estate owned properties, these auctions offer homes, land, and other types of real property that have reverted to bank ownership due to the original owners' inability to continue meeting the monthly mortgage obligation. This can be a particularly lucrative area for real estate investors, as well as individuals seeking to buy a residence.

In addition to home auctions individuals and families can benefit greatly from condo auctions. Often, the combination of the lower price of condominiums to homes and the savings realized by virtue of the auction process may make it possible for buyers to own their own residence, when single family home prices are still out of reach.

Likewise, investors will benefit from the bargains they'll find at townhouse auctions and other types of apartment auctions, which enable them to buy rental properties at competitive prices.

Real estate investors can also benefit from purchasing promissory notes or loans. At commercial note auctions, investors can purchase notes on commercial properties including apartment complexes, shopping centers, office buildings, mobile home parks, and individual businesses. Generally, these types of auctions require the broker to assemble as much background information on the commercial property as possible to allow the investor-bidder to adequately determine the viability of the investment.

Industrial notes auctions and hospitality notes auctions can likewise offer the prudent investor an attractive purchasing opportunity. Because the sale of a performing note or non-performing note can be at a significant discount to the unpaid balance, these are very attractive to buyers. Sellers look to sell performing loans to focus on other opportunities and non-performing loans are sold for a variety of discounts. These note and loan sales are to the benefit of both buyer and seller.

Somewhat less complex—and therefore somewhat more attractive to inexperienced investors—are promissory notes purchased at residential notes auctions. Because residential notes don't need the plethora of documentation required by commercial notes, they can be easier to understand and evaluate.

Real estate auctions offer an exciting way for buyers and sellers to do business in a format that offers many mutual benefits.