To successfully merchandise properties by the auction method, you must have two or more capable buyers who are ready, willing and able to buy at a fair price. The auction marketing method facilitates the private treaty sale process by adding significant marketing techniques and a time element that entices all genuinely and remotely interested bidders to bid competitively on auction day, therefore creating the fair market value for highest and best use. The more unique or specialized a property is, the more an auction can help obtain a unique price. Appraisals are difficult to determine with unique properties. Aggressive bidders help ensure sellers' properties will not be sold for less than current market value.
Auctions bring together the supply of limited buyers for the available properties.
Financial Situations a. Seller needs quick cash. Seller wants to buy another piece of property but must liquidate present property to finance new purchase. Seller wants the money and financial peace of mind. Estate Liquidations or Partition a. Heirs or partners want to dispose of property promptly. Heirs need to create charitable remainder of trusts.