Why You Should Consider Auction
What is a Auction?
An auction is a process of buying & selling items by offering and accepting bids to the public or specific approved audience with or without reserve. There are many different types of auction but all operate off the basic principle. Some of the different & most popular types would be Live Auctions (either onsite or in an auction house with bidders in attendance), Online Only Auctions & Simulcast Auctions (live auction with both onsite & online bidding).
What is the difference between Absolute or Reserve Auction?
Absolute auction is when items are offered up for bids with no reserve and will sell to the highest bidder. Although it has its associated risks, it is the most effective way of ensuring that the assets you need to liquidate will sell very quickly. Absolute auctions generally receive more bidder interest and participation while also, in most cases, receiving a higher selling price for the assets being offered than an auction with reserve.
Auctions with reserve or subject to seller confirmation are when items are offered up for bidding and are only sold upon the condition the price reaches a certain amount. While this method is more popular among larger assets and seems to be the safer way to sell things at auction. It does come with some risks as well. It is harder to draw bidder participation in a reserve auction which makes it harder to reach what the asset is truly worth as well as recoup cost associated with advertising, setup & more.
Why is Auction the Best way to Liquidate assets?
Whether you sell absolute or with reserve, auction still remains the best & most efficient way to receive fair to above actual market value for your assets. When you choose auction you are choosing a date to sell your assets versus listing them for sale and hoping a buyer comes along. As well when you are in a booming economy & housing markets where there is more demand than supply, auction is a great way of promoting competition among buyers for your assets which means you receive a higher price than you would have received with a traditional agent.