Could you please share your opinion on the benefits of having a absolute auction vrs. a reserve auction.Why would anyone not submit a reserve price for their property?Will be selling a commercial piece at auction soon with a small payoff pending and would like know the pros and cons of each.
Taganale absolute auction
- Thread starter tsutcli
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Roebuck, you are correct. It is my opinion that you won't find a low reserve on most of the heavily-leveraged properties. I am just shooting from the hip, since I see so many properties which receive bids at auctions, but do not end in a closing. My guess is that the reserve wasn't set low. Since I am not in the auction business, perhaps you can share the factual data to prove me wrong, or to defend my opinion.
The biggest benefit of an absolute auction is the interest and size of the crowd that will be at the auction if:
1. The property is desirable. The better the property, the more interest you will have and the more willing people will be to come bid.
2. It is properly and aggressively marketed. If the auction company you use does not get the word out about the auction, it is probably not going to go as well as you would like.
Bidders like absolute auctions because they know the property will sell. They don't feel like their wasting their time. This is why people would choose to sell their property at absolute auction. They want any potential bidders to know that they have fully committed to selling. In all the years I have been doing auctions, a well marketed absolute auction for a desirable property has always been a successful sale.
The biggest con of an absolute auction is obviously that there is a level of risk involved. You can eliminate most of this risk by doing the following:
1. Try to take a look at the property you are selling through the eyes of a buyer and be realistic with yourself about you would be willing to pay for it today in this market. Don't think about what you could have sold it for in 2004 or some other factor that has nothing to do with what it is worth right now. If the price you come up with is less than what you want or need, then you should rethink your decision to auction it.
2. Don't be afraid to question the company conducting your auction about where and how they intend to market your property. See what properties like yours they have been successful at selling. Bottom line is make sure that they are getting the word out properly.
The only other thing I will add is that the decision to sell at absolute auction has to be your decision. Do not let someone try to pressure you into an absolute auction. I would never tell someone to consider absolute if I didn't feel 100% certain it was in their best interest. I always do what you asked me to do in this post. I give the pros and cons and let the seller decide if it is right.
Smiling Joe, I have no problem with you having an opinion about the auction profession either positive or negative as long as you state that it is your opinion. My problem with your earlier statement was that you posted it as if it was a fact.
Thanks for letting me clarify that it is my professional opinion, and not based in data. Now, perhaps you can provide the data to prove me wrong or prove me correct. I haven't heard you say that it isn't so. You took a detour in that response.
So, I hear that the auction for these two units were canceled due to there being only a couple of registered bidders, even though they spent $60,000 + in advertising for the auction. I guess with these auctions, you need more than one bidder per unit to make them work, hence the pulling of the "Absolute" part of the auction. Could you imagine showing up to bid and no one else showing up?
I do think there are buyers out there for this property at the right price. I am wondering if some of these auctions being changed last minute and pulled last minute, have a direct impact on bidders not showing up. Why would anyone want to waste their time flying down here for an afternoon, if there is a good chance that the property won't sell anyway?
I know that all sellers are not equal, nor are all auction companies. I don't mean to imply that Roebuck Auction doesn't do a good job, so my apologies to Roebuck Auction if my words sounded like darts. I know that www.RoebuckAuctions.com has some properties being auctioned tomorrow and Saturday, and wish them luck. I just want to see some sales, period.
I do think there are buyers out there for this property at the right price. I am wondering if some of these auctions being changed last minute and pulled last minute, have a direct impact on bidders not showing up. Why would anyone want to waste their time flying down here for an afternoon, if there is a good chance that the property won't sell anyway?
I know that all sellers are not equal, nor are all auction companies. I don't mean to imply that Roebuck Auction doesn't do a good job, so my apologies to Roebuck Auction if my words sounded like darts. I know that www.RoebuckAuctions.com has some properties being auctioned tomorrow and Saturday, and wish them luck. I just want to see some sales, period.
So, I hear that the auction for these two units were canceled due to there being only a couple of registered bidders, even though they spent $60,000 + in advertising for the auction. I guess with these auctions, you need more than one bidder per unit to make them work, hence the pulling of the "Absolute" part of the auction. Could you imagine showing up to bid and no one else showing up?
The listing I saw said all three units were for sale, not just two. Does anyone know if the auction was held, and if so, what was the selling price?? They've certainly been on the market a long time. I'm guessing if the owners/builder (Billy & Suzanne Tagg) cxld, they had to pay a cancellation fee to cover the agent's costs.
The listing I saw said all three units were for sale, not just two. Does anyone know if the auction was held, and if so, what was the selling price?? They've certainly been on the market a long time. I'm guessing if the owners/builder (Billy & Suzanne Tagg) cxld, they had to pay a cancellation fee to cover the agent's costs.
Don't you love waiting for facts? I'd like to see some finality to the open question for you. Will you give us your closing statement Roebuck Auction so we can deliberate?
The advertising was a little misleading. All three units were for sale but only one was Absolute (from ads you would have thought all were). At the last minute they changed it so none were Absolute(probably why only two bidders showed). I heard that there were bids of 400,000 and 700,000 ( same unit/different units - who knows) and the auction was cancelled.
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I don't know if closets have been added or not, but I do remember being at the public hearings for this project. There was a ton of opposition from neighbors, who felt the "media room" and "study" was just a scam. The feeling was that the site was too small to begin with and if the developer put in what would have been the required parking for five bedroom units that the square footage and/or the number of units would have to be cut down. Someone with some patience could find the minutes, but if I remember correctly it passed after much discussion because it technically met the code. Like so many other projects..........
