Why Would They Auction That?
Ty Patton | March 19, 2018
One of the most common questions we hear at McCurdy Auction is some variation of “Why would they auction that?” The clear implication is that whatever item we are talking about—typically real estate—is too nice or too valuable to sell via auction. In other words, auction is great for junk, but valuable real estate necessitates the traditional listing method to make sure that it brings the best value.
Accordingly, “Why would they auction that?” is one of my favorite questions to field. It indicates that I am talking to somebody who isn’t familiar with the modern auction process and hasn’t been exposed to the dramatic changes in the way real estate is marketed and sold in the modern world. When I hear, “Why would they auction that?” I know that I get a chance to walk someone through the benefits of auctioning real estate.
And I get a chance to show why the auction method of selling real estate is one of the fastest growing segments of the auction industry.
What makes the auction method so effective for real estate is what makes the auction method so effective for any number of items: competition. Auction forces interested parties to compete to win a property. As a result, when coupled with an intense and targeted marketing campaign to drive interest, a real estate auction generates fierce competition, which in turns drives prices. There is no better method to force interested parties to lay their cards on the table. And there is no better method to avoid the hassles that are an integral part of the traditional sales method. Inspections, financing, and appraisals are handled by the interested party prior to the sale. So the only thing left to do on auction day is let the bidders compete to see who will be the last hand in the air.
The auction method is also proven. We don’t ask our sellers to use the auction method on faith. Rather, we have years of proven results that demonstrate, time and time again, that auctions work. Over 3,000 sold and closed auctions are available to search on our website. And the reason we can make those results available, is because they speak for themselves. Open competition ensures true price discovery and drives great results. So, the answer to “Why would they auction that?” is “How could they afford not to?”