Commercial Auctions
Often commercial property, depending on the zoning status and the current demographics of business “friendliness” in a particular city, may sit for longer periods of time. The auction method allows a property owner to liquidate the asset with expediency, reducing debt and/or opening up cash flow. With effective marketing, the auction method of commercial real estate sales achieves market value easily because often the price is based on income and typically closes in the shortest amount of time.
Benefits to the Seller
Reserve Price Protection: If necessary, your commercial property can be protected with a reserve price. This means that your property will not sell unless bidding reaches a pre-agreed level. At the same time, there is limit for bidding and bidders present will determine the true market value of your commercial property.
Potential Bidding Competition: All potential bidders of a commercial property must be pre-registered at the beginning of the auction and provide a cashiers check for a predetermined amount once they arrive. This means bidders are qualified and serious about potentially purchasing the property when they arrive. Numerous bidders on site is our goal!
Effective Marketing: Before there is an auction, there is marketing plan. An effective auction company will provide you with the plans and details of how your commercial property will be marketed and the goal to drive investors or buyers to your property for the auction date. The marketing plan will expose your property to numerous potential bidders. This is the foundation for the auction strategy.
Certainty of Sale Date: There is no “list and wait” with an auction. When an auction contract is signed, the date and time of the auction is set. And that is when your commercial property will be sold. All commercial properties sold at auction are sold “as is and where is” so there will be no contingencies after the auction.