Probably you have noted that reo auction services are more common nowadays. From the huge commercial properties to the luxury homes, auctions are now commonly highlighted in the news. Many properties today are able to meet the 2/3 requirements of the National Association of Realtor that requires you to do an analysis of the property, market, and the situation of the seller. Where 2 of the 3 parties (property, seller and market) are leaning towards the reo auction services, then the reo asset management service should advise the seller to go for an auction. One of the reasons why reo asset liquidation services are interested in auctions is these offer a great option to both buyers and sellers.
Why choose an auction at all?
Reo asset firms prefer the auctions as it is a great marketing tool that makes it possible for a property to be sold or bought. However, unlike other forms of marketing, auctions come with some unique characteristics that make them to be more attractive. These include:
There was a time when the real estate contracts consisted of just a few pages. However, this is not the case anymore. Nowadays, we have real estate agreements that consist of lengthy a document that are filled with some tiny type, and cover nearly every contingency that may happen. The auctions offer a great option for simplicity. Homes are usually sold with some contingencies and are settled within a period of a few days.
Industry experts suggest that the average home usually remain on the market for a period of 69 days before it can get sold. Real estate agents realize when a product remain in the market for a long time, it means increased cost of marketing, greater dissatisfaction of the seller, and delayed payment of commission. However, an auction allows the scheduling of the sale of a property on a particular date. Where no seller reserve is present, it is possible to sell the property on the same day. this is where REO auction services come handy.
One of the key difficult situations when it comes to real estate and REO asset management is where a property is sold using multiple bids. Many of the traditional buyers do not want the revealing of their offer, and no single purchaser would like to bid for more than they want. The good thing about an auction is they create a level marketing process as the bids are usually visible and open. The prospective purchaser is able to bid or even not bid with an understanding of the demand of the property. This means there are intimations and rumors, or even claims that there is a buyer who may be interested in the property.
When it comes to the homes located in the brackets of the other price, these will represent a unique problem for the real estate agents. With the home rising in value, the potential buyer’s pool tend to become smaller as there are only a few people who are able to afford the big ticket properties. However, REO asset liquidation services ensure that when a property is available, it is open to all prospective buyers.