The Pros and Cons of Auctions

January 23, 2020

The word auction comes from the Latin "auctus," which means "to increase." Today, an auction is known as the method of sale designed to have a buyer pay as much as possible without an undisclosed ceiling price.


The pros and cons of an auction vary between a buyer and a seller.


Buyers will often tell you they hate auctions because they feel like they are being forced to pay more than what they would under normal circumstances. Sellers, on the other hand, dislike auctions because of the perceived pressure of ensuring their items will sell high enough to cover the cost of marketing.


Buyers attend auctions under the belief that they could find items they like at amazing prices and because they are informed that all negotiations will be transparent and open.


So, let's get this straight! Sellers want the highest value, while buyers expect a bargain. All this is played out in public.


Is it any wonder why agents have a hard time selling the concept to sellers? Why do they bother?


Here is why…


1. Auction properties sell faster.


2. Auctions have a higher success rate.


3. Auctions normally carry an extensive marketing budget.


4. Auctions that sell under the hammer get a result with less time spent in negotiation for the agent.


5. Successful auctions normally result in more auctions for the agent.



Would you buy or sell a property at an auction?