Are you looking for new and innovative ways to sell your clients’ properties? If so, partnering with an auction house could be a great option for you. Auction houses are experienced in selling all types of property, from land zoned for industrial use to family homes. They can also reach a wide range of potential buyers through their marketing and networking channels. Here are some things to keep in mind if you’re considering partnering with an auction house.
Unlocking the Benefits of Partnering with an Auction House
Partnering with an auction house can provide many benefits. Auction houses streamline the entire process of selling a property. You’ll spend less time staging and showing the house, and your client won’t need to negotiate with possible buyers. Furthermore, partnering with an auction house gives realtors access to a much larger network of potential buyers, which increases the chances of getting a good price for their clients’ properties.
In short, partnering with an auction house can save real estate businesses time and money while also maximizing their profits. Let’s take a look at some of the ways that partnering with an auction house can benefit your business.
Auctions are a Streamlined Sales Process
You know that selling homes on the open market can be an unpredictable endeavor. Some homes sell within 24 hours, while others languish to be unsold for months. Auctions help alleviate this unpredictability, especially for clients who cannot wait.
You and your client will work with the auction house to set a date, and you can generally expect to close on the same day as the auction. This reduces stress on your clients as well as any potential buyers who are interested in making offers on the property.
The streamlined process ensures that everyone involved has access to accurate information about the property quickly and easily – this helps ensure that all bids are fair and transparent so that both parties walk away happy at the end of each transaction.
Auction Houses Give You Access to a Wider Network of Potential Buyers
When you partner with an auction house, you gain access to a much larger network of potential buyers than you would typically have through traditional channels such as MLS listings or open houses. This gives you greater exposure for your clients’ properties which will increase your chances of matching motivated buyers with your clients’ homes – something every seller wants!
The wider network also makes it easier to find buyers who are willing to pay full market value for certain properties. This is especially beneficial if you have high-end luxury homes, vacation rentals, or commercial buildings in your portfolio.
Tips for Selling Your Client’s Property Through Auctions
Selling property through an auction can be a great way of expediting the sale and getting more than what was initially expected. However, it is important to approach the process carefully and with deliberate effort.
Do Your Research on the Process
It is important to do your research and have a thorough understanding of the process. Some of it will be familiar, like determining the market value of the property, and other steps may be unfamiliar for real estate agents, such as setting a reserve price. You’ll also want to understand how auction houses tend to market their auctions, so you can supplement their marketing campaigns with your own to improve your client’s chances for success.
Researching various auction houses before deciding on one is crucial, as each has its own policies, rules, and regulations which vary from state to state. It is also essential to ensure you understand any additional costs that may be associated with using an auction house, such as commission fees or advertising costs.
Set Realistic Expectations for Your Clients
When participating in an auction, it is important to set realistic expectations for your clients. In the worst cases, some properties sell for 70% less than their actual value. This is far from the norm, but your clients should still expect to get a little less than market value at auction. Make sure they understand, though, that they’re getting time back by selling through an auction.
You should also assess if your clients are substantiated for any tax benefits or capital gains beforehand, as this could help ease the sale and prepare them for tax day. While auctions can create competition between buyers leading to higher bids than originally anticipated, there is no guarantee of success. Therefore, it’s important to have realistic expectations going into the process.
Prepare Your Clients for a Smooth Sale
To have a successful outcome when selling your property through an auction house, you must be prepared by having all paperwork in order and ready for potential buyers upon request. You should also make sure your client understands that they won’t receive payment until after the gavel has dropped. Although you’ll often close on the same day, the buyer often has 30 days once the title has cleared its closing conditions to deliver payment.
Finding the Right Auction House for Your Real Estate Needs
Selling real estate can be a tricky business. It’s important to choose the right partner when it comes to selecting an auction house to help you get the most out of your sale. You’ll want to find an auction house like Looper Auction that understands your real estate business. Doing your research and comparing services is essential if you want to make sure that you have chosen the best fit for your real estate needs.
Research Local Auctions
The first step in finding the right auction house is researching local auctions. Start by talking with other agents who have worked with auctioneers in the past. Get information on fees and services offered, as well as any additional costs associated with selling property through an auction. You should attend and observe a few auctions hosted by potential partners to get a sense of who attends their auctions and how successful those auctions are.
Compare Fees and Services Offered
When comparing potential partners, it’s important to compare fees and services offered. Be sure to look into any additional fees associated with selling real estate property through an auction, such as taxes or commission rates, so that your clients are not surprised when it comes time to pay up after the sale has been completed. Additionally, check for any guarantees or warranties offered by each company to determine which company offers the most protection against unexpected costs or losses arising from the sale of your property.
Auctions are Great for Those Hard to Sell Properties
Auctions provide an efficient and cost-effective way to sell your clients’ valuable assets, especially second homes, rental properties, and properties located in industrial zones. Auctions allow buyers to assess each property quickly and accurately, and you don’t need to worry about unmotivated buyers, who take up your time without intending to purchase.
Most importantly, auctions ensure that your clients receive the most competitive market prices for their assets. Additionally, auctions eliminate the time-consuming process of individually negotiating with multiple buyers. Ultimately, you’ll find that auctions are a great choice for your clients who are looking to offload vacation homes and investment properties with minimal stress but maximum value.
How to Use an Auction House to Promote Your Properties
Auctions are a great way to get your properties sold quickly and efficiently. While it’s important, just having a reputable auction house isn’t enough for success. You also need to provide potential buyers with detailed descriptions and photos as well as market comparables that will help them make informed bidding decisions. Finally, don’t forget to create some early buzz about the auction before its start date so that there is already some activity when it begins.
Provide Detailed Descriptions and Photos of the Properties
For potential buyers to make informed decisions leading up to the auction date, they need detailed descriptions and photos of your portfolio of properties. This information should include clear titles and deeds, any damage or repairs needed before the sale, any existing liens against the property, etc. Photos should be taken by professionals so that they show off the features best and can be used in promotional material like flyers or website postings before the actual auction date.
Find Market Comparables
In addition to detailed descriptions and photos of each property in your portfolio, potential buyers will also need access to market comparables—a list of similar properties recently sold in your area as well as those currently on the market—for them to make informed bids during the auction process. Providing this information ahead of time can give buyers more confidence when bidding on your properties since they know exactly what comparable properties have sold for recently. Often, this is a key step to ensure your clients get the price they want for their properties.
Work With Looper Auction, a Partner Who Understands Your Business
With an auction house on your side, you can attract more buyers, so your clients can sell for a price they’re happy with. It’s essential to choose an auction house that offers experience and credibility. Properties ranging from large redevelopments down to single-family residential dwellings can be marketed through an auction house.
Partner with Looper Auction to support your real estate business. Our team of experts will take all the guesswork out of the process. We have decades of experience selling properties in Arkansas and Oklahoma, so you and your clients can be confident of a successful sale. Take your real estate business to new heights by partnering with Looper Auction today!