A
AUCTION VS TRADITIONAL
AUCTION EVENT |
TRADITIONAL SALE |
| Focuses attention on your property alone. | One of many properties being offered for sale. |
| Seller sets the day of the Auction. You know when the property will be Sold! | Property may remain on market for months or years. |
| Aggressive, targeted marketing utilizing signs, brochures, newspapers, Email, internet, direct mail, telephone, MLS & more. | Heavy reliance on Multiple Listing Service, nominal advertising. |
| Seller sets the terms of the Auction. | Seller must negotiate all aspects of the sale. |
| Auction creates a sense of urgency. | Price reduction commonly used to create buyer interest and activity. |
| No limit on upside potential. Realizes the property's true market value. | Upside potential limited by asking price. |
| Eliminates guesswork in determining the asking price of the property. | Seller risks overpricing and thus, property sitting on the market; or under pricing and selling too cheap. |
| Eliminates prolonged negotiations. | Negotiations can draw out over a long period. |
| Buyers compete to own and all offers are presented at the auction. | Multiple offers at one time are rare. |
| Property sold in 30 days thus eliminating expensive carrying costs. | Mortgage payments, taxes, insurance, etc. continue until property is sold. Length of time to sell is unknown. |
| Property sells contingency free. | Normally contingent upon buyer’s financing, inspections, appraisal, etc. |
| Non-refundable earnest money. | Refundable earnest money, buyer can back out easily. |
