More All Absolute Auctions ScheduledSeptember 13th, 2008 by PA - Bloger
We’ve commented on this earlier this summer and now there has been a serious spike in not only absolute auctions but also the “all absolute” auctions. In these auctions all of the properties being offered are sold regardless of price to the highest bidder. Offering a few properties absolute or a small percentage of the total pool may not be enough anymore. Buyers want more and the auction community is responding.
Tranzon Asset Advisors out of Kentucky will offer all 18 residential lots for a lender at absolute auction in early October. The sale will take place on site in Missouri and is expected to be sell-out. The auctioneer is ahead of the curve working with the lender as opposed to the developer who is most likely either all or partially out of the picture.
Developer auctions have been a much tougher sell these days with little or no absolutes and published minimums that may not even appeal to today’s buyer. Some developers, however, are happy with their auctions even if they don’t have a complete sell out claiming that the exposure their project receives as a result of the auction marketing assists them in disposing more inventory in the “after auction” market.
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