Real Estate Markets – Property, as well as any permanent improvements related to the land, whether natural or man-made is referred to as Real Estate. You can buy a home, a rental property, or another piece of Real Estate directly or indirectly through a Real Estate Investment Trust (REIT)
The overall value of Nigeria’s real estate market is estimated to be N59 trillion, which is theoretically six times larger than the country’s stock market, which is now valued at N12 trillion. The sector cannot be dismissed on this basis.
Therefore, in order to tap into this wealth as a business-oriented individual, it is important to know some of the strategies you can use in the sector.
One of those strategies is auction sales.
What Is Auction Sales
Auction sales is defined as the sale of items through a bidding procedure. The auction procedure entails the sale of any valuable item or property in a public gathering where purchasers place bids for the purchase and the transaction is made to the highest bidder.
The selling process is divided into three stages: before the auction, during the auction, and after the auction. Some of the known advantages of auction include achieving a higher price for owners, reducing the number of days on the market and conduction of business in a transparent and professional manner.
When using auction sales, there are certain rules that must be followed and they include
- Sale of goods in lots
- Sale completion
- The right to bid reserved for the seller
- Reserve price
- No Credit sale
In addition, there are different types of auctions when it comes to real estate and they include
- Bank auction properties for sale
- Railway auctions
- Real estate foreclosure auctions
- Land auction etc
Importance Of Auction Sales in Real Estate
Here are some of the importance of auction sales to seller, buyer and a realtor
To Seller:
- Buyers arrive ready to make a purchase.
- Long-term carrying expenses, such as taxes and maintenance, are reduced when items are quickly disposed of.
- Guarantee that the property will be sold for its fair market value
- Provides a huge number of pre-qualified prospects with information about the property.
- Increases the speed of the sale
- Creates buyer competition—the price of an auction can be higher than the price of a negotiated transaction.
- Pre-qualification for financing is required of potential purchasers.
- The seller is aware of the exact date on which the property will be sold.
- Removes a large number of unscheduled appearances.
- Removes the seller from the negotiating table.
- Ensures a robust marketing campaign that boosts interest and visibility.
To The Buyer
- Property is frequently purchased at fair market value through competitive bidding, resulting in smart investments.
- The buyer is aware that the seller is serious about selling.
- At a multi-property auction, the bidder sees a variety of options in one location at the same time.
- The buying price is set by the buyers.
- Long bargaining times are eliminated with auctions.
- The dates for purchasing and closure are known.
- Buyers are aware that they are competing on the same terms as all other buyers.
- Due diligence packets provide buyers with complete information about the property.
To The Realtor
- Creates a list of qualified buyers who are ready to buy.
- Provides new selling and purchasing possibilities to clients and customers.
- Revenue and market share are increased.
- Creates a market niche for yourself
- Guarantee that the property will be sold for its fair market value
- Property is typically sold in a short period of time.
- Exposes the property to a large number of potential buyers.
- People come in to look at all of your listings, not just the auction listing, when you hold an auction.
- Referrals and repeat business are common outcomes of successful auctions.
- As a referring agent/broker, cooperating agent/broker, or listing agent/broker, agents can earn commissions.
A real estate auction is a creative and efficient way to sell property. It’s a fast-paced real estate marketing method that incorporates the public sale of any property, including non-distressed properties, through an open call, competitive bidding procedure. To know more about real estate, visit Lansar Aghaji & Co today