08 Nov Why Auction Real Estate?
Some of the world’s most luxurious assets such as collectible vehicles, jewelry, yachts, and art are sold by auction and real estate is no exception. Since 2008 there have been over $1 billion in luxury real estate auction sales and in 2015 there were a total of 108 real estate auctions announced within North America.
So why auction real estate? It’s a question we get asked a lot. Buying or selling a home is a big life decision and both hot and cold real estate markets across the country can be challenging to maneuver. Although the current, more traditional method can be effective for some listings, CBC Marketplace recently uncovered that this system can also leave Canadian consumers at a disadvantage.
Perhaps we are still riding the high from our fourth successful live auction, or maybe it’s the clarity that comes from five years of diligence and research, but when it comes to real estate auctions, we only see upside. Learn more about the top four benefits that make the auction process so effective.1. Fixed Sale Date
A fixed sale date is one of the most attractive aspects of an auction. Knowing exactly when a property will sell makes planning the future possible and creates a powerful call to action for the buying group.
The Garage Sale has successfully auctioned four properties in an average of 73 days. These homes were previously listed and on the market for an average of 503 days.
2. Increased Marketing Exposure
A strategic, multi-channel marketing initiative coupled with strong Realtor and media relationships helps to ensure that each property we auction gets a maximum amount of exposure. These condensed and highly targeted marketing campaigns seek out qualified buyers from around the world.
The overall transparency of the auction process cannot be denied. The auction process is not only a successful and efficient way of managing multiple offers but a process that allows for buyers to bid to their maximum potential. Through this transparent process, maximum value is achieved and true market value can be determined leaving no questions or unknowns.
4. Maximum Value
Strong marketing, a set sale date, and a transparent process work together to ensure we reach the most qualified bidders and ultimately achieve an unconditional sale. Our most recent real estate auction sold with a hammer price of $5,775,000 million, the highest live auction sale of Canadian recreational real estate and reached 101.3% of the independently appraised value. Our previous auctions tell a similar story with the hammer price averaging 98.7% of the independently appraised value.
Bottom line: for us there is no question that the auction process has continuously proven to be a successful form of real estate sale – for both the seller and the buyer alike.
The Garage Sale has refined the most effective elements of the auction platform to meet the needs of today’s real estate market. Through key partnerships, pre-auction support, a live auction event, and post auction support, we offer one of the most extensive and well-equipped processes to get your asset sold for the absolute highest value.