While traditional methods of selling real estate are still one of the more preferred channels, commercial property auctions as a platform has been gaining considerable ground and traction for the past years on a row. Investors have discovered that what was once a seemingly intimidating thing is actually one of the more powerful and opportunistic avenues to consider and use to one’s advantage.
But just like anything else, commercial property auctions are not fool proof. They’re not all encompassing either and so they need to be used well for us to benefit from them the most. We should also first assess if our needs match and complement them and to do that we have to investigate on and weigh down their various hits and misses. We’ve listed them all down to guide you so read on and better take note.
- They satisfy a part of the market which traditional methods fail to tap at all or appropriately. There are assets here which may not be available in other selling platforms. As a smart investor, you need to know where to look and auctions are not a bad place to do so.
- They are an opportunity to buy more for less. As contradicting as it may sound, it does. This is because many assets sold at commercial property auctions can be bought at a price lower than what they would have been sold for under traditional means, provided that one does their research. A lot of foreclosed assets and even those that seek liquidation as a part of an estate are actually being sold here to take advantage of the market and the haste.
- They have some of the more interesting and highly coveted assets. If you are looking for a one of a kind commercial property, chances are you’d find them here as well.
- It takes enough skill, knowledge and guts. Auctions are not for the faint of heart, the learning adverse and the lazy. It pays off but only after work is done.
- It can be a financial slaughter for some. This is reference to buyers who fail to do their homework and stick to their budgets and limits. Bidding without thinking is a nightmare highway.
- Commercial property auctions require significant and readily available resources. Auctions often require participating bidders for a security deposit and winning ones for an upfront down payment. The balance is also often payable under a strict timeline, some as short as 24 days. singerviellesales.com