The Benefits of Auction Marketing
Today, more than ever before, auctions are providing results for buyers and sellers. Online sales methods have created a buzz around the word “auction”. When trainers have a champion thoroughbred horse, they sell it at auction. The finest art in the world is sold at auction. Classic automobiles sell at auction. Real Estate is the fastest growing segment of the auction method. Auctions are transparent, and buyers and sellers like that among other benefits of buying and selling at auction.
Auctions provide a definitive time and date for your asset sale. A carefully planned accelerated marketing program gives your property high exposure. You can stop costs of maintenance, vandalism, insurance, utilities, mortgage payments and other costs of ownership. Auctions are an excellent way to convert assets to cash in a short time period. Competitive bidding determines the best price for your properties. The perception of value of equipment and other assets and reality are not always the same. Reality says your assets are not worth a dime more than a person will pay and has the ability to pay for it.
On the lawn or online, auctions are taking place in communities large and small across the country with more than a quarter trillion dollars in assets and goods being sold via auction every year. One of history’s oldest forms of commerce, dating back as far as 500 B.C, auctions continue to be the most efficient and effective means of price discovery. That said, auctions continue to be plagued with misconceptions and misunderstanding in today’s marketplace. We’ve heard it before from naysayers who say, “selling at auction is selling at a discount.” We’ve also heard the rumors that auctions only exist for selling distressed property. As unfortunate and frustrating as these rumors are, what frustrates our proud profession the most is that nobody questions the market value attained when rare, priceless works of art are sold for millions of dollars at auction like sculpture Alberto Giacometti’s “L’Homme qui Marche I” which sold for $104.3 million. Nobody doubts the values brought when Cher’s private home is sold at auction, or questions the method when the home of former U.S. presidential candidate, Senator John McCain’s is sold by an auctioneer. Nobody critiqued the prices attained when Michael Jackson’s personal affects were sold at auction. Nobody challenges the value of their shares in Wal-Mart at the end of the day on Wall Street. However, mention selling everyday real estate, commercial assets and other assets via the competitive bidding of an auction and doubt and uncertainty immediately follows.