When you need to sell commercial property, there are different options for doing so. You can sell it by yourself, work with a traditional real estate agent, or put it up for auction. How do you know the most effective way to sell your property? The best course of action is to learn as much as you can about each option, weigh the benefits and drawbacks, and think about which will be the right option for your particular property.
A real estate auction is a multi-stage process. The first step is to determine if it is a good fit for auction, after which the owner can contact an auction company and set the process into motion.
With a commercial property, it is unlikely that you will want to do a private or “by owner” sale. That means your options are an auction or traditional sale, through an agent. With a traditional sale, the property is listed, marketed and shown to prospective buyers, and the seller and agent wait for an offer. With an auction, the property is presented to a large group of buyers at the same time. Another difference is that a house listed for sale waits for the right offer, and the price tends to be lowered as time goes by. In contrast, as an auction moves forward, the price goes up, and the person who places the highest bid wins the auction.
How do you know if a real estate auction is good for your property? One method used to decide this is the two-thirds rule. Simply put, there are two components that influence a real estate transaction, and if two of them lean towards auctioning, that’s the direction to go. The three components are the market, the seller, and the property. If it’s a sellers’ market, with low inventory and high demand, properties tend to do well at auction. If your property is unique and will stand out from the crowd, however, an auction might also be a good choice, because this type of property does well even when the market is sluggish. If the seller wants to sell quickly, this is a point in favor of an auction. An auction allows you to get the best price for your property in a limited window of time. Properties that have been empty for a long time, are challenging to appraise, or are unique are all good matches for real estate auctions. Once you have assessed all three of these categories, you will have a pretty good idea of the direction you want to take.
When you are selling a commercial property, whether it is a retail establishment, a restaurant or hotel, an office building, or a multi-family residential building, reaching the right buyers is essential. The buyers for commercial properties are different from those looking for other types of properties, and are often investors looking for a purchase that will lead to significant returns. They have a very clear idea of what they want, and are willing to pay for it, but they can be hard to find when you are selling a commercial property on the traditional real estate market. Unless you are working with a broker who is well-established in the commercial real estate market and knows the kinds of investors and buyers who will want and be able to qualify to invest in your property. When you sell a commercial property through an auction, there is a sense of urgency that can bring buyers to the property, and you won’t have to wait for them to find the listing, get in touch with the seller, and tour the property before making a bid.
If you decide that selling your property at auction is the best option for you, Dakil Auctioneers, Inc is here to offer a seamless auction experience. Oklahoma’s premier full-service auction company, we have led the Oklahoma auction industry since 1982. Our auctioneers have over 200 years combined experience, and our 28,000 square foot, state of the art facility in Oklahoma City sets us apart from other sales options, not just locally but also nationally. If you need to auction property, we are capable of providing comprehensive administration of a business liquidation, including industrial and business equipment, oil and gas properties, or estate property, offering complete liquidation or cash purchase. Additionally, we provide expert promotion for your auction, designed to reach the largest number of potential purchasers, for maximum results. A Dakil auction is a clear, efficient, and above-board process, which is why so many people choose us over other auctioneers. If you would like more information or to subscribe to our newsletter, contact us through our website.
