Single Asset Residential Auctions Still StrongOctober 23rd, 2008 by PA - Bloger
With the downturn in the marketplace more and more auctioneers are getting in on the bulk ballroom auction sales. These sales are mostly impersonal but certainly effective for an institution looking to quickly dispose of hundreds of properties in one day. We have noticed that auctioneers who have traditionally performed on site auctions for a single residential property still exists.
The challenges that they face are new. No longer can a real estate investor of a single residential property buy today at one price and sell tomorrow at a higher price. So what’s the secret to success these days with this type of auction? It comes back to the same tactic that all auctioneers use right now to create a sense of urgency for buyers. That’s offering the property either at absolute auction or at a published reserve price that is just so low that any reasonable investor in the area would be foolish not to buy.
This is certainly the case for Luxury Real Estate Auctions offering 2509 Ogden St in Denver, Colorado next month. It’s a beautiful townhome built just in 2000 and is offered at a published reserve of $155,000. According to industry locals this is a slam dunk price for this property and should attract a ton of buyers to the auction sale. The auction price, of course, will determine the true market value for this property.
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