ATLANTA, GA, Oct., 14, 2009 - (by John Johnson, CCIM)
Real Estate Auctions: A viable option to move properties quickly in a slow market.
With the rapid decline in prices driving market demand down, commercial properties of virtually all types are being successfully sold using accelerated marketing or auction techniques. By 2010, one in every three properties will be sold using an auction method of marketing, according to a National Association of Realtors study.
During the past two decades, the auction has evolved to today’s accelerated marketing method – a way to sell quickly and still maximize the return to the seller. Savvy owners of all types of properties - high-rise Class A office buildings, retail centers, multifamily properties, hotels, industrial buildings and land parcels are using accelerated marketing to achieve a quick and certain sale the highest quick-sale price for their properties. Vacant or partially vacant properties and developed commercial building sites and pads are also being sold by auction in order to attract potential buyers.
Real estate owners have observed auction successes in other areas of the economy. Sellers of high-value assets, such as thoroughbred racehorses, antiques, art and fine wines, have long fetched top dollar at auction. Commodities and stock shares have been sold to the top bidder at the Chicago Mercantile Exchange and the New York Stock Exchange. Following this lead, several top companies, including Wal-Mart, McDonald’s, Hewlett-Packard Development Company, Chevron and ExxonMobil, have auctioned off excess real estate holdings through the accelerated marketing approach. Even Donald Trump, who sold at auction his Trump Plaza Condominiums in West Palm Beach, Florida, has extolled the merits of this method. Read the rest of this post »
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