Real Estate Auctions

Updated : January 2005

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What is a Real Estate Auction ?

A real estate auction is a method of buying and selling real estate through the medium of an auctioneer. Auctioneers know that the best products around the world are sold by public auction eg. thoroughbred horses, art and real estate.

What are the Benefits of a Real Estate Auction ?

The real estate auction is a "win-win" situation for everyone involved. The seller disposes of properties quickly and efficiently, saving long-term carrying costs such as interest, real estate taxes, and maintenance. For the buyer this can mean a smart investment, since properties are usually purchased at fair market value through competitive bidding. Because the auction sale is conducted in an open forum, both motivated buyers and sellers have the assurance of watching the true market value emerge as the bidding process progresses.

Are All Properties Suitable for Auction ?

Most properties can be sold by public auction. These include residential property (incl. apartments, condominiums, single family dwellings, farms, cottages), commercial property and vacant land. Sound developments can be marketed effectively through public auction. The only time we do not accept selling property by auction is if we feel that we cannot get the price you want. We at Hands Auction will not selfishly spend your advertising dollars just to get our name in the paper.

What if the Property Does Not Sell at Auction, Is It Still Possible to Market It Conventionally?

Yes. But do keep in mind that the auction marketing method has already exposed the property to a large part of the buying public. The prices reflected to purchase that particular piece of property conventionally may likely exceed fair auction prices because of high-end carrying costs that will have to be incurred.

Can I Be Sure Of Getting a Fair Price ?

The only genuine measure of the value of real estate is what someone else is willing to pay for it. An appraisal is only an informed opinion. It is not an offer to buy. The real measure of the value of real estate, at any given time, is what it will bring under competitive bidding from informed and motivated buyers.

Do Real Estate Auctions Depress Home Values ?

No. In fact, Real Estate Auctions reveal the true market value of a property because auctions are conducted in an open forum where all bids are known, and participants are given feedback on the property's value. At auction, the values settle at the level the market can bear.