If you are looking to get involved in real estate and begin purchasing properties as investments, real estate auctions can offer unique opportunities.
A real estate auction is an accelerated real estate marketing process that involves the public sale of a property. Properties that are typically auctioned off tend to be distressed or ultra luxury homes. These properties are sold through a competitive bidding process.
Distressed properties will usually be auctioned off through a foreclosure or tax lien auction. In each of these scenarios, these properties have been given back to a lender to city/town to sell. An auction is a good selling option for these circumstances since both parties involved can benefit.
Homeowners who own vacant property in Syracuse NY can accumulate carrying costs of about 20% to 35% of the properties full market value over a course of a year. A real estate auction in Syracuse NY gives them an innovative way to sell there property without incurring these costs and allowing them to sell there property faster than normal.
3 Types of Real Estate Auctions in Syracuse NY
There are 3 types of real estate auctions or methods that are used by auctioneers to sell properties. Each of these options offers different advantages to both buyers and sellers. Before you decide to purchase a property through a auction, make sure that you understand each of the options and how they will effect your purchase or sale. All properties that are sold in an auction format are sold as is with no contingencies attached.
1) Absolute Auction (Unreserved Auction) - In Absolution Auction in Syracuse NY means the property will be sold to the highest bidder, regardless of the price that is offered. This vehicle is often much more competitive among bidders and can result in a higher price for the sellers. This is due to the fact that bidders are aware that if they bid the highest they will win the property, no questions asked. This is the riskiest of methods for the seller but also has the potential to achieve the highest selling price for their property. If you are interested in this type auction, you can read more about it at www.brzostek.com.
2) Minimum Bid Auction - In Minimum Bid Auctions, a minimum bid is set prior to the auction beginning. This is the minimum amount that will be accepted for the sale and this is the price where bidding will begin. This minimum price will always be stated on the auction brochure and also will be announced at the live auction. These types of auctions will not attract as many bidders since they are already aware of a price that is accepted. Although the seller may not see as high of a selling price at a minimum bid auction, they do offer a sense of security to the seller. In this situation, the seller will try to set a minimum bid that is attractive to buyers. By not pricing your minimum bid correctly, you offer the risk of discouraging initial buyers. If you would like to participate in this method of auction, you can head over to www.auction.com to learn more.
3) Reserve Auction- In a reserve auction, the seller has more control. He is allowed to accept, reject or counter offer the highest bid. In this situation, the highest bid is not always accepted and if the seller does not agree with the price he does not have to accept. This option gives the seller the most protection but also draws the least amount of interest to potential buyers. The seller has up to 72 hours after the highest bid is accepted to make their decision on the offer. Potential buyers are not attracted to these types of auctions because they do not want to put in the time and research knowing there winning offer has the chance of not being accepted.
Why Participate in a Real Estate Auction in Syracuse NY
Depending on your position in a real estate auction (buyer or seller) there are some unique advantages to selling through a real estate auction. A lot of the same benefits that are offered through an auction are also offered through selling to a real estate investment firm.
If you are selling a property through a real estate auction you could benefit from:
Knowing you will have a buyer and sell your property
Reducing holding costs (taxes, utility, insurance and maintenance)
A quick sale
Due to competition, auction price can exceed negotiated price
Buyers are pre-qualified for financing
No open houses or showings
No negotiations
If you are buying a property through a real estate auction you could benefit from:
A deeply discounted deal (not always)
The buyers determine what the property will sell for
No negotiations
Fast closings
No Marketing
You know when you will purchase and when you will close
A fair sale
So, if you are an investor in Syracuse NY, auctions can be a good additional vehicle to take advantage of to find deeply discounted deals. Not all auctions offer great deals but you can find some deals that you can take advantage of and profit along the way.
Wrapping Up The Real Estate Auctions | Syracuse NY
Real Estate Auctions in Syracuse NY are a great option to consider if you are buying or selling properties. It is becoming more prevalent to use this vehicle. Deeply discounted properties are hard to come by and if you are not doing your own marketing or have connections to great wholesalers, looking into real estate auctions may be a good option for you. Just make sure you try and do as much due diligence as possible on all of the properties you are considering to gain as much details as possible.
If you have ever sold or purchased a property through a real estate auction, we would love to hear about your experience. Did you have a successful transaction? Did you get the asking price you were looking for? Or if you are a buyer did you get a good deal that you were able to profit in? or were you unable to find a deal that was worth pursuing?
Either way, comment below and let us know how you did.
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