subject: Tips For Success With Online Commercial Real Estate Auctions [print this page] Introducing online commercial real estate auctions to property owners brings along many frequently asked questions. You may or may not have heard of online auctions for real estate before, but this method is the best for buying and selling all kinds of real estate, both commercial and residential. There are many benefits to selling residential and commercial property at online auctions. If you are interested in participating in one, here are some of the common questions that people have and the answers to them.
1. Are online commercial real estate auctions good for all property owners?
Any property owner with assets on the market is a good candidate for auctions, especially any motivated seller who needs certainty of closing within a short time frame. These would be sellers who need to convert a property to cash and those who are facing loan maturity.
2. How do I convince a property owner that an online auction is the way to sell?
Probably the most important thing for property owners to know is that auctions create deadlines. Auctions motivate buyers to get active and move on the property they are interested in because of this deadline, especially in a stagnant market. There is a limited window of opportunity to obtain a particular property, and buyers will bid up the property to the highest price possible during a commercial real estate auction online, or any property auction for that matter.
3. I know it is important to set a low minimum bid, but how do I stress this to owners?
The most successful online property auctions are those with a large amount of bidders participating to bid up the value of a property. The best way to generate a large pool of bidders is for the property owner to set that low minimum bid. In fact, the best online auction sites recommend that the minimum bid be set at no more than at least one half of the original asking price.
4. What can I tell a property owner who does not trust that buyers are going to be serious about purchasing property in an online auction?
The easiest and most effective way to dissuade casual bidders from acting on a property is to require a Winners Deposit at an amount that is set by the property owner. Those who do not win the auction will get their deposits back, but the deposit for the actual winner is non refundable to ensure that only serious bidders participate in the online commercial real estate auctions.
