Going once ... going twice ... sold!

How auctions can generate profitable commercial real estate deals.

Once thought to be the realm of only problem and hard-to-sell properties, auctions are gaining popularity nationwide as a viable alternative to move all types of commercial real estate. Industrial, retail, and multifamily properties are hitting the auction block in record numbers, according to "The Auction Alternative," an article by Steven Gould, published in Commercial Investment Real Estate.

Gould contends that auctions offer many advantages to traditional brokerage. Clients can control the timeline of a deal and often sell their wares faster, thus garnering more immediate commissions for you, the broker. Auctions also help to put a value on hard-to-price properties by allowing the market to dictate what they’re worth.

Several auction formats and types exist. You can call an auction for one property or combine your client’s assets with others to create a multiple-property format. The auction can be conducted with sealed bids, which level the playing field when one bidder is thought to be much stronger than the others, or open outcries, which create a more competitive atmosphere benefitting the seller of desirable properties.

Learn more about the pros and cons of auctioning commercial property by visiting Gould’s article on the Web at www.ccim.com/jrnlart/20030608.html.

Illustration © PhotoDisc.

Buyers & sellers, visit www.texasrealestate.com.
REALTORS®, visit www.texasrealtors.com.