SUCCESS OF REAL ESTATE AUCTIONS in MARYLAND, BALTIMORE, HARFORD COUNTY, CITY

Auctions Are Often Thought of as "Fire Sales" For Properties in Distress. Is this True?

Until recently, real estate auctions, unlike art and antique auctions, have experienced unfounded negative images in the marketplace. The majority of auctions today don't result from foreclosure of distress situations, but rather are the result of a seller choosing a cost-effective, accelerate method to sell a property. Builders or financial institutions, for example, prefer auction rather than laboring for months or years to sell units of a development one by one. Auction allows the seller to eliminate virtually all long-term carrying costs, passing the savings directly to the purchaser in the form of a reduced price. Auction is truly a win-win situation: sellers obtain immediate cash and buyers purchase properties at fair market value, the price determined by open, competitive bidding. Maryland residents enjoy the advantages of theAuction Method.

What Factors Impact the Success of an Auction?

1. The seller must have realistic expectations, including a fair sales price, terms and timing.
2. The desirability of the property. This includes location, conditions, plus the value of surrounding properties.
3. Since a variety of auction methods are available, carefully choose the auction type that best suits the property and the seller's needs. Maryland has seen a great success in the Auction Method of Marketing Properties.
   
4. A well planned, aggressive marketing/advertising campaign targeted to prospective purchasers is critical to an auction's success.
   
5. Using a recognized real estate auction company or a REALTOR® auctioneer to ensure the auction is conducted in a professional manner and followed-up through closing. We serve Harford,Baltimore, Cecil and Surrounding Areas.
   
6. Making sure that due diligence information is provided to prospective buyers AHEAD OF TIME.
7. Preparing the property for sale so it is presented to prospects in its best condition. (i.e.., title insurance, clean-up, financing, etc...)

Most properties are salable by auction. All types of real estate, including residential property (e.g., town homes, condominiums, cooperative apartments and single-family homes), commercial and industrial property, vacant land and even boat slips are sold at auction. Not all property, however, is suited for auction. If a property will only appeal to a narrow market, auction may not be the most effective marketing method.
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Author

Robert B. McArtor, REALTOR, AUCTIONEER, BALTIMORE, HARFORD, CECIL MARYLAND
Long and Foster Real Estate, Inc.
Bel Air, MD

Office Phone: (410) 879-8080
Cell Phone: (443) 392-4833
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Contact Robert B. McArtor, REALTOR, AUCTIONEER, BALTIMORE, HARFORD, CECIL MARYLAND