Selling properties via land auctions can provide wonderful benefits for property owners, including the following:
- Shortened Timeline
- Committed Buyers
- Equal Opportunity for Buyers
- Easier Negotiations
- Diversified Options
- Obtaining a True Market Price
Depending on many market variables, selling land can often be a lengthy process. Utilizing a land auction to bypass the back-and-forth negotiations of a traditional real estate sales process may be an essential option to take into account when selling land. But what are the benefits of a land auction?
1. Shortened Timeline
One advantage of land auctions is the accelerated timeline when compared to a traditional sale. Traditional sales can take months or years to close, auctions typically close in as little as 30 to 45 days. If selling quickly is a must, auctions may be the best way to close on a deal in a timely manner.
The hastened timeline can also be very attractive to potential buyers. Due to the timed deadline element of an auction, buyers need not worry about investing an abundance of time negotiating on a property only to have the seller announce that they are no longer willing to sell.
2. Committed Buyers
Negotiating with buyers can be time-consuming. If the buyer decides to delay or even back out of a deal entirely after lengthy negotiations, it can be frustrating. Auctions speed the sales process by providing buyers who are committed to purchasing your property. This is a tremendous benefit to you, the landowner, because it boosts your confidence knowing the buyer is committed to the purchase and won’t back out of the deal.
3. Equal Opportunity For Buyers
During an auction, all buyers are provided with the same information at the same time and given equal opportunity to bid in a fair manner. This level playing field is another attraction that land auctions use to entice buyers.
4. Easier Negotiations
Auctions tend to omit stress and decrease the amount of time involved in a traditional real estate sales process. This keeps the buyer from wasting time or other valuable resources. Auctions also provide information such as terms and conditions ahead of time so that both buyer and seller are fully prepared on the day of the auction. Buyers are given a due diligence packet with information that enables the buyer to come to the sale prepared to buy with a full understanding of the terms of the sale. This allows both buyer and seller to avoid the inconvenience of negotiating.
5. Diversified Options
In multi-property auctions, buyers are conveniently presented with several options to compare all in one setting. This provides the buyer with diversified offerings and insight into the value of related properties that may interest them. It also provides a convenient opportunity to buy multiple properties without having to travel to each property. Selling land through a multi-property auction can serve as a benefit to the seller as well when these types of auctions can often attract even more potential buyers.
6. Obtaining A True Market Price
The true purpose of an auction is to attain a true, fair market value on the property. Auctions create a competitive atmosphere allowing buyers and sellers to assess the true market value of a property.