ITEM UNDER CONSIDERATION |
AUCTION |
TRADITIONAL LISTINGS |
SALE DATE
|
WITHIN 30-45 DAYS. |
Unknown |
PRICE CHANGES |
Bidders bid up in open forum. |
Seller drops as time passes.
|
PARTY PAYING REAL ESTATE
COMMISSION |
BUYER |
SELLER |
CLIENT CONTROL OVER & INVOLVEMENT IN
ADVERTISING |
EXTENSIVE. The client is actively
involved (approving budgets, publications, etc.) because
of a marketing investment. Auction
properties must stand out via bigger,
higher-visibility print ads.
Click here to see first-hand auction
advertising. |
MODERATE. Traditional realtors pay all
marketing costs, so client control is less, as is the level and
visibility of advertising for any given property. |
PRICE ATTAINED |
Highest TODAY’S market will bear. |
Best available price over a
protracted marketing period.
Click here to see how quickly holding
costs add up. |
SALE "SUBJECT TO FINANCING"
(i.e. contingent on buyer qualifying for financing). |
NOT ALLOWED |
Present in virtually EVERY purchase
agreement. |
SALE "SUBJECT TO IMPROVEMENTS" |
NOT ALLOWED.
Property sold, "AS IS, WHERE IS." |
A contingency in many purchase
agreements. |
SALE "SUBJECT TO APPRAISAL" |
NOT ALLOWED. |
A contingency in virtually
every purchase agreement. |
SALE "SUBJECT TO A SALE"
(i.e. buyer must first sell
his own property) |
NOT ALLOWED. |
Since these aren't "sales," agents don't even
stop marketing. This is a common contingency in
purchase agreements. |
DEPOSIT AT EXECUTION OF PURCHASE AGREEMENT |
10% of contract price, ALL AT RISK. |
Minimal, typically NOT at risk (due to all
the "subject to" contingencies referenced above). |
TIMING OF INSPECTIONS ("showings"). |
STANDARDIZED. One open house before auction and one hour prior
to auction. |
"Appointment only."
Advanced notice often minimal, seller's routine often
disrupted. |
MLS |
NO.
UNIQUE marketing method and ABSENCE of ASKING PRICE renders MLS inapplicable. |
YES. |