Over the past few weeks, we met with a few potential property sellers. As we discussed what they hoped to achieve by selling their property using an accelerated marketing method, it became clear to us that they would be better served by pursuing a different option.
In one case, the seller hoped to obtain much more for the property than its value. As a result, we advised them to consider talking to abutting property owners who might not realize they were ready to sell and might be interested in increasing the size of their lot. In another case, we talked for a few hours about the best ways to downsize a parent’s property and help best preserve both memories and equity for the family.
In each case, it made sense to take a bit of time and reach out to others before putting the property up for sale. Helping people find the best solution for themselves and their families is what we do … and sometimes that means walking away from selling the property via accelerated marketing techniques and by auction.
Today, we would like to talk about some of the considerations that go into selling your property by auction so that you end up doing what is best for you. Things to think about include: are you helping yourself and/or your family achieve both the financial goals and emotional goals you’ve set; reaching your goals within a specified time; working to realize top price for your property in a competitive market; working to save time and money in a slow market; and attracting serious buyers.
In our opinion, the top consideration in accelerating the marketing of your home and selling by auction is making certain that doing so aligns with both your and your family’s financial and emotional goals. For most people, handling the equity that has been built in a property and the contents of a home is not simply a matter of practical business. Memories are in that home. Traditions are associated with that property. Heritage is a huge piece of its emotional value.
As a result, families are often willing to receive a lesser value for it such that some of those memories, traditions, and heritage are part of the sale. Or, families might place conditions on the sale that assure their emotional investment in its heritage are met. For example, those looking at selling a family farm might consider putting the farm into an agricultural conservancy before actually selling the property. A conservancy prohibits future development of the property and limits all future owners to using the land as either farmland or open space. In some communities, taking this step might limit the value of resale because the property cannot be used for housing or commercial development. Setting up the conservancy takes time and would extend the timeline the family sets as a goal for divesting themselves of the property. But, in establishing the conservancy, the emotional goals of the family will be met, be they the desire to preserve the history of the land, open spaces, or the memory of a loved one.
Another consideration to accelerated marketing is timelines. If you know that you want to divest yourself of responsibility for the property by a certain date, an auction is the best way to go. You set the date it will sell. As long as you have set a realistic minimum bid for the property, it will sell on that date and you will be ready to move on.
In a competitive market (a condition that many areas across the country are experiencing right now), accelerated marketing is likely to help you realize top dollar for the property. Because bidding happens in real time with no back and forth between realtors and is not delayed by discussion regarding conditions to the sale, a desirable property can easily be bid up well past the minimum bid you established for the sale.
In a slow market, on the other hand, accelerated marketing can help to reduce carrying costs -- for example, the costs associated with continued maintenance or mortgage payments will be reduced. You set the date of sale based on the costs you are willing to absorb and based on the timelines you need to adhere to for moving forward.
Finally, when you work with a good auctioneer, a home or property sold using accelerated marketing techniques are most likely to attract serious buyers. There won't be a parade of people visiting an open house “just to see.” Instead, because buyers must pre-qualify for the sale and because the property is sold “as is,” bidders show up the day of the sale to buy.
We hope that this information has helped you to begin to plan what the next steps regarding your property or home will be. We would love to visit with you in person to discuss the opportunities. And, we pledge that we will help you to determine what the best options are for you and your family as you work on moving forward.
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