When an owner of real estate wished to sell, they usually ask a real estate agent to suggest the best way to market and sell it.
One popular method of selling is by public auction. However there is always debate as to whether sale by auction is the best way to sell property. Some people believe private sale is the way to go while others prefer to auction.
The truth is that the best method of sale depends on a number of issues.
Factors that may point towards public auction as the best method of sale include:
- A rising real estate market
- A short supply of property in demand
- A popular type of property
- A good location of the property
There may be other issues that need to be considered too, including the segment of the market that may be interested in the property, privacy issues of the seller, any urgency required in the sale and whether an executor of a deceased estate or a mortgage in possession in selling the property.
Will a private sale of the same property achieve the same price as at public auction?
Once again if the property is appropriate to sell at auction, in the right market conditions, a private sale will often not achieve the same price.
With two or more bidders after the sale same property being auctioned, the competition can often take bidding well above normal expectations.
Your REIT member can tell you the appropriate way to market and sell your property.
Ask him or her for advice as well as a written appraisal and marketing plan for your property.