Real estate is one complex topic and is often an interesting albeit confusing point of discussion. Well at least to some. Perhaps one of the aspects to it that satisfies a curious and adventurous mind has something to do with property auctions.
This is not surprising given the dynamics of an auction. They are known for their intense highly accelerated platform that engages participants to bid for a certain offer for as much as they can and want to. There are no limits to the price but there’s a minimum. Suffice to say, they can be pretty intimidating especially to newbies.
But property auctions, despite having said the above, continue to thrive. The question now is why? What’s in them that make them seem so engaging?
Surely it’s not just adrenaline. Let’s not forget that we are on the subject of real estate and these assets are nothing short of valuable. If anything, they can be expensive. This is why many investors would have to dedicate a portion of retained earnings or even take a loan to fund it. So why bid then?
The lure of property auctions stem deeper than just a person’s competitive side. It lies, to a significant degree, on the reasons for sellers to sell. What’s surprising about this type of auction is the opportunity for buyers to score a good deal aka purchase a piece of real estate investment for lower than what it would have been sold for via a traditional platform. This is made possible because of the following types of sellers:
- The Eager Marketer – Auctions have a distinct captured market and sellers, agents and real estate brokers want to take advantage of this particularly in periods of a sluggish market where traditional means do not allow them to liquidate the assets at a profit within a preferred time frame.
- The Heirs to an Estate – Inheritance comes in many forms and properties are some of the most common and not to mention coveted. However, when there are more than one heirs to a property, splitting it up can be impossible so in order to do so, it must first be sold and liquidated.
- The Financier – Property auctions are also an avenue for financial institutions such as banks to recover, within a short span of time by means of a foreclosed asset based collateral, the amount owed to them by debtors who have failed to pay for their loans or who have breached the credit contract.
Go to https://www.singerviellesales.com/english for more on property auctions.