Going once… Going twice… Not sold..?
We have seen a new phenomenon rising in 2016 that is taking the sale of apartment buildings into one of the oldest forms of buying or selling goods and services..the auction. Originally established in 500 B.C, some brokers have rebranded this ancient method of bidding as a modernized way of achieving higher values. One of the reasons this strategy has developed, in this rapidly increasing market, is a fear by Real Estate professionals of under pricing properties. In principle this old method does have some merits that can be beneficial for specific types of properties and should be considered when determining the best way to generate top dollar for your investment, but not as often as the process is being used.
Not having an asking price on a property does come with some benefits. Firstly, there is no price expectations established to the Buyer, they must compete on what will be a good enough offer to beat out the competition. In a efficient and well environment, an experienced investor will do extensive research to determine value.