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Traditional vs. Auction

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

 

 

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