Monday, September 15, 2014
SOLD On Selling Real Estate at Auction
Sheer excitement builds, followed by satisfaction when hearing the word, “SOLD!” exclaimed by the auctioneer, or reading it across the screen. Many auction companies are raising the bar for buyers and sellers alike, offering multiple options for selling their real estate at auction. In fact, according to Frontdoor.com, an online real estate listing site, “about 11% of the time, auctioned homes sell for more than what the seller had previously listed the home for in a conventional sale.” More and more, people are turning to auctions to sell their homes, farms, and land as the preferred method.
Why is selling real estate at auction a better solution? According to Dennis Kaptein, President of Platinum Bid Auction Service, “One of the most sought after reasons for selling real estate at auction is that it accelerates the process and in turn gets the seller their money faster.” Most real estate sold at auction has a time frame of approximately 6-8 weeks which includes marketing the property by the auction company and closing within 30 days after auction day. Auction companies, like Platinum Bid Auction Service, have licensed real estate brokers and agents that not only know the real estate business, they know the auction business and can market your property efficiently getting it in front of the buyers, and completing the sale. Another benefit to selling real estate at auction, is that the people present are interested in the property, and there to buy. As the seller, control remains in your possession over accepting the final bid and in turn final selling price. Properties offered at auction are generally sold “as is, where is” with no warranties given out. In turn, the risk is low and the payback is getting the money out of the sold assets more efficiently and quickly.
Currently, the sales price of agricultural land is at an all-time high. According to the USDA Agricultural Report on land values “over a span of 5 years from 2007-2012, the value of farmland has increased 33%.” In fact, 21 of the last 22 years have shown growth in land values, reports the MSU Agricultural Report. Specifically, values in the southwestern portion of Michigan are seeing exponential increase in agricultural land value. “Currently, the Michigan counties of Ottawa, Kent, Allegan, VanBuren, Kalamazoo, Berrien, and Cass have the highest average values per acre and this same district experienced a 12% increase in land value in just 1 year.”
How long will these significant increases in agricultural land values continue? “Land values for tilled farm land rose 5.9% last year, while the predictions for the coming year are only 1.8%,” According to the USDA Census of 2012. This prediction suggests the time for action or more precisely, auction, is now, while values are still high. Further studies suggest that there is a concern for whether or not the financial performance of agriculture can sustain current land prices. In addition MSU Agricultural Report states “in the past, non-agricultural demand for farmland has held values high, but those demands are only effective if Michigan’s economy is strong with low unemployment and increased incomes.” As a whole, the recent survey in The Agricultural Newsletter from the Federal Reserve Bank in Chicago, shows land values potentially coming down over the next few quarters.
Selling real estate at auction is a win-win scenario for all parties involved. For sellers and buyers alike, it is an exciting and fast paced adventure. Jim VanderVeen, Real Estate Broker for Platinum Bid Auction Service tells of one of their clients’ recent experiences. “At a recent auction we conducted for the U.S Department of Agriculture, they were hoping to meet the appraised value of 2.93 million in sales, however the actual result of their auction was 5.97 million-a 204% or 3 million dollar increase in what they were anticipating! It was an exciting opportunity to see the online auction process work for real estate.” Platinum Bid offers an online bidding feature that is easy to use and offers real time information. They also have a new multi-parcel bidding option that gives owners the ability to sell real estate as one parcel or multiple parcels. This gives the buyer the opportunity to bid online on multiple properties simultaneously, mimicking a live auction.
Platinum Bid Auction Service’s team of professionals are getting the best prices for both property and equipment, and are ready to answer any questions about the auction process. They offer live or online auction services. Whether it is a farm, single family home or recreational land, Platinum Bid is the place to sell!
Call them today to learn more at 616-608-8416 or go online to www.platinumbidauctions.com and see all that they have to offer.