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Auctions Vs Traditional Listing

Auction Vs. Traditional Listing

Compare Your Options: Auction Vs. Traditional Listing

AUCTION

 

  • Auctions have a bidding to start from price or no price, allowing a negotiation up.
  • The marketplace does not know the sellers expectations or their final number.
  • There is no ceiling to the value.
  • Market decides the value.
  • Buyers are focused on what the property has to offer without the distraction of a list price.
  • Auctions are subject to a sellers confidential expectation/reserve, allowing a seller to be in complete control at all times.

The Strategy Behind Our Auction Process:

  • All inspections, reports and disclosures are completed upfront.

  • When a property sells at auction it is sold on an 'as is' basis.

  • The buyer is required to complete all due diligence before signing the non-contingent purchase agreement.

  • During the auction process the seller is in control and the seller dictates the terms.

 

Set Date

  • Auction have a set sale date – auction day.
  • Set date tells buyers the seller is motivated to sell, although not desperate.
  • Forces buyers to make a decision and creates a sense of urgency amongst buyers.
  • Buyers are more likely to view an auction property before a traditional listing, allowing seller to captivate the entire market.
  • Set date allows market value to be found quicker as the process creates urgency and encourages buyers to make an offer for fear of missing out.

 

 


 

TRADITIONAL LISTINGS

  • Traditional listings have a ‘for sale’ price.
  • The list price immediately tells a buyer what the seller will accept and what the buyer does not need to pay.
  • Buyers will always try and negotiate and offer below the list price.
  • Buyers are focused on how much less they can buy the property for and how much they can negotiate the list price.
  • If the property is not selling the only option is to reduce price.
  • In a traditional sale the buyer knows the sellers reserve price –because it’s the list price.

The Process of a Traditional Listing

  • In a traditional listing the buyer offers a purchase agreement, lists their terms and inspection periods.
  • Buyer completes due diligence after making the seller agree to the purchase agreement.
  • During contingency periods buyer has the ability to ask for repairs, price reductions and extended time to close.
  • During the traditional process the buyer is in control.

Set Date

  • Traditional listings are marketed without timeline and with no set date for sale.

  • Traditional marketing can be described as a passive approach with no set strategy.

  • Can take up to months to obtain valuable feedback and discover market value.

  • No set date means buyers are not forced to make a decision.

  • Buyers keep looking at other property whilst watching the sellers property continuously sit on the market.

  • Buyers will wait for a price reduction because they have no call to action.

     

 

Compare Your Options: Auction Vs. Traditional Listing

4 Simple Steps for Buying at Auction

Auction Success - Vancouver, BC