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THE AUCTION METHOD
What does an auction accomplish that my
listing cannot?
An auction showcases a property, allows a greater concentration
of marketing resources and puts your client in control of the sale
date and terms. It typically results in contingency-free sale within
30 to 60 days. Because of the shortened time horizon, Cityservice
is able to conduct a more aggressive campaign than would be possible
with an open-ended listing. This allows more advertising with a
broader reach, casting a wider net. In addition, the urgency of
the impending sale date gets the attention of prime prospects who
might otherwise postpone a decision indefinitely. The terms and
competitive nature of the auction eliminate troublesome contingencies,
insincere offers and endless haggling.
Is my property a good auction candidate?
The ideal candidate for an auction is a property expected
to sell for $1.5 million or more with a seller committed to selling
at a market price determined by the open competition of the auction.
It can be especially useful for properties that, for some reason,
have had difficulty rising above the market clutter and attracting
attention. Because numerous factors go into a property's suitability
for auction, it is best to consult a Cityservice agent for a complete
evaluation.
What are the different types of auction?
There are two main types of auction -- absolute and reserve.
In an absolute auction, the seller guarantees to sell the property
on auction day regardless of price. Absolute auctions typically
attract more bidders and achieve higher prices, because bidders
know that the property will be sold.
In a reserve auction, a seller can accept or reject the final bid.
This reserve can be set before the auction and published. A variation
is an auction with a published reserve.
What is the timeframe for an auction?
Approximately 90 days. In general, an auction event will
occur about 60 days after the listing agreement is executed, and
the property will close about 30 days after the event.
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SELLLING BY Cityservice
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SELLING
BY ORDINARY SALE
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Sell in 90 days or less. By specifying a date on which
you intend to sell, you create a sense of urgency with potential
buyers and this becomes a catalyst for the entire sales process.
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In a slowing market, it's posssible that your property will
remain on the market for months or even years, leading to
price reduction to encourage buyer interest and activity.
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Exclusivity. Focus on your property alone by exclusively
showcasing it throughout the marketplace, which will provide
maximum visibility among the target market most likely interested
in your property.Our experienced marketing professionals,
public relations and direct sales efforts will bring your
property to the attention of qualified prospects.
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Your property will be one of many that is minimally advertised,
which creates a heavy reliance on the Multiple Listing Service.
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Carrying Cost. A Cityservice helps you eliminate the
costs that erode your equity, and will often net you the highest
price possible
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A property that remains on the market for an extended period
can become a serious drain on you and your equity. Mortgage
payments, maintenance, taxes and insurance can add up to thousands
of dollars a month for some properties.
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Control. Buyers act on your schedule because you set
the date and time of the sale and the terms and conditions
such as earnnest money deposits, closing time frames and more,
thus eliminating negotiations. Potential buyers know you are
committed to sale on a specific date, therefore, they do their
homework in advance and arrive ready to bid on sale day.
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There is less motivation for buyers as you are waiting on
them. Plus, you must negotiate all aspects of the sale.
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Price. Luxury properties have few 'comparables' upon
which to base a true appraisal. Auctions establish the fair
market value and eliminate guesswork in determining the asking
price. There's no limit on the upside potential.
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You risks overpricing, and thus seeing little interest, or
under pricing and selling for less than the property is worth.
The upside potential is limited by the asking price
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Close in 30 days or less. Cityservice auctions are
contingency free, so you'll be able to make plans based on
an on-time closing of your property.
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If you have ever 'sold' a property contingent on financing
or on the sale of the buyer's property or with other common
contingencies, you know how difficult and frustrating closing
that sale can be.
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