Whether you are a buyer or seller of a property in an auction, there are many potential benefits to be had. Commercial plots can often be sold at a higher price through an auction than if they were to be sold privately, and buyers may be able to get a bargain by purchasing at auction.
Benefits of Auctions For Sellers of Commercial Plots
For sellers of commercial plots, auctions can be a great way to generate interest in their property and ensure they get the best possible price. Here are 5 other benefits of how an auction can be advantageous:
1. Auctions Create Urgency
When a property is put up for auction, there is a sense of urgency created as buyers know they need to act fast if they want to purchase the property. This can often result in a higher price being achieved as buyers are keen to avoid missing out.
2. Auctions Attract More Buyers
Auctions are often a more public way of selling a property than through a private treaty, meaning more buyers are likely to be aware of the sale. This can lead to more competition and a higher final price. Auctions are often advertised in local newspapers and online, giving your property greater exposure.
3. Auctions Are Less Time-Consuming
The process of selling a property at auction is often quicker than through a private treaty sale. This is because there is no need to wait for buyers to organise finance or carry out building and pest inspections, as these are generally done prior to the auction.
4. Auctions Reduce the Risk of Contracts Falling Through
There is always a risk that a contract may fall through when selling privately, often due to buyers being unable to obtain finance. This risk is greatly reduced when selling at auction as buyers are required to have their finance organised prior to bidding.
5. Auctions Provide Certainty of Sale
When a property is sold at auction, the contract is legally binding and the sale is finalised on the day of the auction. This provides certainty for both the buyer and seller, as opposed to a private treaty sale where there is a cooling-off period that either party can terminate within.
Benefits of Auctions For Buyers of Commercial Plots
For buyers, auctions can be a great way to purchase a property at a lower price than what it may have sold for privately. Here are 5 other benefits of how an auction can be advantageous:
1. Auctions Provide Transparency
When buying at an auction, all potential buyers are bidding on the same terms and conditions. This provides greater transparency than a private treaty sale where there may be different offers being made with different conditions attached.
2. Auctions Create Competition
The fact that all potential buyers are bidding in public against each other can often result in a lower purchase price being achieved. The level of competition will vary depending on the number of buyers interested in the property, but auctions generally create more competition than private treaty sales.
3. Auctions Offer Flexibility
Auctions provide greater flexibility for buyers as they are not restricted by cooling-off periods or the need to obtain finance prior to bidding. This means that buyers can act quickly if they find a property they are interested in, without having to worry about securing finance first.
4. Auctions Allow You To Set Your Own Limit
When bidding at an auction, buyers can control how much they are willing to spend by setting their own limits. Once this limit is reached, they can stop bidding and not risk spending more than they are comfortable with.
5. Auctions Provide Certainty of Sale
When a property is sold at auction, the contract is legally binding and the sale is finalised on the day of the auction. This provides certainty for both the buyer and seller, as opposed to a private treaty sale where there is a cooling-off period that either party can terminate within.
Auctions can be a great way for both buyers and sellers of commercial plots to achieve their desired results. For sellers, auctions often result in a higher price being achieved as buyers are keen to avoid missing out. For buyers, auctions provide greater transparency and flexibility and often result in a lower purchase price. If you are considering buying or selling a commercial plot, speak to your local real estate agent to see if an auction is a right option for you.
How Can A Real Estate Agent Help You in An Auction
Whether you are buying or selling commercial plots, a real estate agent can be a valuable asset to have on your side. They will be able to provide you with advice on the best way to prepare for an auction, as well as how to bid or negotiate if you are the successful party.
If you are selling, your agent will be able to help you set a reserve price that meets your expectations. They will also be able to promote the auction to buyers and create competition on the day.
If you are buying, your agent will be able to provide you with advice on how to bid and negotiate with the seller if you are the successful party. They will also be able to help you organise finance if required and conduct due diligence on the property.
Auctions can be a great way to buy or sell commercial plots, but it is important to seek professional advice from a real estate agent before participating in one. They will be able to guide you through the process and ensure that you achieve the best possible result.
Real estate auctions offer a number of benefits for both buyers and sellers.
For sellers, auctions can help expedite the sale process and attract competitive bids from interested buyers.
Additionally, auctions eliminate the need for lengthy negotiations and potential buyer contingencies.
For buyers, auctions provide an opportunity to purchase properties at a potentially lower price than traditional methods. Auctions also offer transparency and a sense of fairness in the buying process. Overall, real estate auctions can be a valuable tool in the buying and selling process.
Pros and Cons of Real Estate Auctions
As with any buying or selling method, real estate auctions have both advantages and disadvantages.
One potential drawback for sellers is that they may not receive the full market value for their property at an auction. However, this tradeoff can be worth it in cases where a quick sale is desired.
Buyers also need to be prepared to make quick decisions and purchase the property as-is, without the option for inspections or negotiations.
Overall, it’s important for both buyers and sellers to carefully weigh the benefits and drawbacks of using a real estate auction before making a decision.
Conclusion
Auctions can be a great way to buy or sell commercial plots. They provide transparency, flexibility, and certainty of sale, as well as the potential to achieve a lower purchase price. If you are considering buying or selling a commercial plot, speak to your local real estate agent to see if an auction is a right option for you.
