Differences Between the Traditional Sales Process & Auction Sales Process
Traditional Sales Platform – Total Buyer-Driven Process
- The buyer establishes contract and closing dates.
- A maximum sale price is advertised to buyers, and offers go down from there over time.
- Due diligence and inspections do not begin until contract is executed.
- The buyer can ask for any number of repairs, contingencies and seller financial contributions.
- Buyer qualification unknown and the contract is contingent on financing.
- Seller can negotiate with only one buyer at a time.
- Little or no recourse to retain buyer’s deposit.
- Buyers review and consider dozens or hundreds of properties listing on MLS.
- Difficult to generate interest without a price reduction.
- Closing success rate is average to low.
- Relies on the marketplace happening upon the “For Sale” sign or MLS listing.
Auction Sales Platform – Total Seller-Driven Process
- The seller determines sale, contract and closing dates.
- A minimums sales price is communicated to buyers, and bids go up from there with no maximum limit.
- Due diligence and inspections occur prior to the date of sale• No contingencies are allowed; property is sold “as-is, where- is” with no option to request seller repairs or financial contribution.
- Buyers are pre-qualified and post a substantial, non-refundable deposit in order to bid; no financing contingencies.
- Multiple buyers vie for the property at once.
- Winning bidder’s deposit is non-refundable.
- Buyers focus exclusively on your property.
- Auction creates “buzz” and a competitive atmosphere without the need for reducing the asking price.
- Closing success rate is high.
- Takes your property to the marketplace by placing it in front of hundreds or thousands of qualified buyers at once