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.
