Prudential Connecticut recently launched an auction service to its clients. What is an auction service and how does it work?
Auctions are done ‘live’ on the property site and ensure that the seller will sell their property at the auction. Selling a home through an auction can be done three different ways: Published minimum bid, which sets a minimum price at which bidding will begin; undisclosed reserve which has an undisclosed price at which bidding must reach in order for the house to be sold; and absolute which is when the highest bidder wins, no matter how low the bidding stops.
Bidders must register and pay a refundable fee prior to the auction. Pre-bids are accepted and the winning bidder makes a deposit at the close of bidding.
How is an auction service different from a traditionally marketed property?
Unlike a traditionally marketed property that is subject to market conditions, Prudential’s auction process generates buyer urgency and ensures that a home is sold in at most 90 days. Auctions are done right at the property and all sales are final.
The property is sold in “as is” condition, meaning the seller won’t make any repairs as a contingency of the sale. But a property inspection is typically made available to bidders beforehand. This can make the sale process easier for the seller than a traditionally marketed property.
What are the advantages to using an auction service compared to a traditionally marketed property?
The biggest advantage is that the home sells quickly and that it’s virtually guaranteed to sell. It sets the home apart from others that are on the market and the terms of the sales are dictated by the seller. And, most importantly, there’s no cap on the sales price. It really sets the true market value of the property.
Are there any specific types of homes that are more likely to be auctioned?
Auctions can work well for homes such as highly-desirable ‘trophy’ properties, unique homes that are difficult to appraise, or for owners who have special circumstances, like needing to relocate quickly or avoiding a pending foreclosure. Auctions can also work favorably when there are an excess of similar houses on the market or for developments that are having difficulty closing out or need a jump start to the sales process.
Why did the company decide to start offering this service now?
Prudential Connecticut Realty is always looking for that latest marketing strategies and services so that we can provide the best real estate services for our customers. We believe auction services provide them with another effective tool to help them reach their goals.
Reader response:
“I’m curious who will serve as Auctioneer when the right property(s) have been identified for Auction? Our company is licensed in CT, NY & NJ. I am a past president of the National Auctioneers Association, in the NAA Hall of Fame and have taught “Real Estate at Auction” in 33 states over the past 25 years. We would be pleased to assist in any projects that are contemplated. Conducting a successful real estate auction is much like baking a cake. You need the right ingredients in the proper proportions applying the appropriate amount of heat for the correct amount of time. Have fun.” — Rob Doyle, United Country Absolute Auctions & Realty Inc.Â
