AUCTION VS TRADITIONAL LISTING
- Marketing Plan Tailored for Your Property
- Process Allows Price to Exceed Seller’s Expectations
- Marketing Expenses Paid by Seller
- Sold “As-Is, Where-Is”
- Pre-qualified Bidders / Buyers
- Predetermined Sale Date; Meets Seller’s Timeline and Builds Momentum for the Property
- Marketing in a Portfolio with Many Other Properties
- Typically Overpriced to Allow for Negotiations
- Broker Typically Absorbs Minimal Marketing Fees
- Post Sale Contingencies and Inspection Period
- Possible Financing Contingencies and Marketing Delays
- Sale Date Unknown; Buyer Determines Length of Marketing Timeline. Holding Expenses and Marketing Changes Become a Factor
Before we get started talking about different marketing methods, we will briefly discuss the 4 main different types of real estate we sell.
These type of properties focus on production agriculture ranging from dryland farming, irrigated farming, and the production of livestock. Different properties yield different returns on investments, which buyers ultimately take in consideration. Our family has a farming and ranching background, which leads us to be very knowledgeable regarding these properties and how to market their different attributes.
Recreational properties are just that, for recreational purposes. The return of investment on these types of properties are generally in the form of enjoyment, family time, hunting, and fishing. Oklahoma offers very diverse types of recreational property. We enjoy the outdoors ourselves and would enjoy helping you and your family market or purchase recreational property.
Commercial property is generally considered property that generates revenue, outside of farming and ranching. This can include an existing business with real estate, or vacant property in which a new business could be built or established.
The most common form of residential real estate is a home in town. However, there’s beginning to be more and more interest in homes with acreages outside of city limits. Residential real estate can sometimes include some farm/ranch land, or even recreational land.
Auction Method and Traditional Listing
There are advantages and differences in each method. The goal of Entz Auction & Realty is to successfully sell the real estate and meet the needs of both the Seller and the Buyer. By knowing what each method has to offer, the Auction Company can evaluate the Seller’s objectives and property potential to determine the most beneficial marketing plan for the Seller. Our Company was built utilizing the auction method of marketing for real estate and equipment. However, we are aware of changes in buying habits and this requires our company to be fluent in multiple types of marketing strategies to meet every client’s needs.
Most everyone is familiar with the concept of auctions. With advances in technology, there is much more to modern auctions than an auctioneer counting numbers. Some auctions may still allow in-person bidding, some might be in-person and online bidding and some auctions are online only. The concept of an auction creates a defined time to sell the property. With a determined auction date, we know precisely what date your property will sell. The auction date creates a sense of urgency with potential buyers and the auction process will put your property in the spotlight for all to see. The auction method places multiple, qualified buyers together in the same competitive marketplace, at an established time of the Auction. Together these factors will establish the market price. The seller is in control of time, thus controlling the financial impact of carrying costs. The marketing strategy for the sale of real estate property at auction is more customized to locate potential buyers. The auction method is an accelerated and aggressive marketing campaign that usually requires an up-front investment from the seller. This targeted and customized approach is designed to build value and create interest in the property. Any marketing fees should be considered an investment rather than an expense. This marketing campaign becomes the driving force for a successful sale. When using the auction method, the property is marketed separately, and exclusively. The auction date creates a call to action from buyers, giving them a specific time to demonstrate their interest in the property. This provides maximum visibility among those interested in the property. It is a customized marketing approach, specifically targeting qualified buyers. This ensures the greatest return on dollars spent.
The terms ‘traditional listing’ or ‘traditional real estate’ generally describe property being sold not using the auction method. You might see these types of properties online with an asking price, or a sign on the property with the real estate company’s name. Traditional real estate creates the opportunity of the “buy it now” method. Sellers can set a price for their property they would like to reach. Although this form of real estate is nothing new, Amazon and other online market places have helped create a “Buy It Now” generation. If the asking price does not generate adequate interest in the real estate, the price can be adjusted or other terms of the sale can be modified. The marketing strategy for the sale of real estate via traditional listing is slightly different than the auction method. We still put our client’s best interests first. This type of marketing will still generate significant interest when a property first comes on the market, but sometimes can get lost among other listings online. Our job is to keep your property in front of potential buyers online, in print advertising and other marketing avenues.
The Marketing Hybrid/Subject to Prior Sale
Our experience in marketing also allows us to do a hybrid marketing strategy. This marketing model utilizes the strengths of various marketing options to achieve the seller’s objective. Our company can evaluate your property and personal objectives to determine if this may be an option for you. There are times that we determine offering a property to be sold at “auction, subject to prior sale” is the best approach. With these properties, we advertise an auction date and time. However, we accept any offers on the property up until a specified day prior to the auction. We evaluate the offers with the seller as the offers are received. We either accept or decline the offer and do not begin negotiations or make any counter offers. If an offer is accepted, a contract is written, auction cancelled and the property taken off the market. If the offer is declined, we continue to accept other offers, the auction remains scheduled and the buyer that made the offer is welcome to make another offer.
Precision Marketing: We customize our marketing campaigns for each property we sell to meet the specific needs of our sellers and generate interest from qualified buyers. Our targeted marketing plan for auctions and listings is designed to build value and create interest in the property. These marketing campaigns become the driving force for a successful sale.