Posts tagged Auctions
Over the past 60 days, NAI Global’s alliance partner for outcry auctions, Higgenbotham Auctioneers, has sold more than 90 properties at auction in Florida, Georgia, Louisiana, Texas, Delaware and throughout a number of Midwest states. In addition, they have scores of upcoming auctions scheduled before year end in Florida, Michigan, New Jersey, Illinois, Texas, South Carolina, and Georgia. More >
Online Auction Platforms such as AuctionPoint offer Agents and Sellers a Step Up from Traditional Brokerage
During the summer, NAI Global launched a program enabling NAI Agents to conduct their own online branded auctions with the help of a preferred vendor partner, AuctionPoint. More >
Open the Wednesday real estate section of The Wall Street Journal or an email communication from one of the major real estate business journals and you can’t miss seeing that dozens of commercial real estate auctions occurring weekly throughout the United States. More >
No two properties are alike; there are geographic as well as asset attributes, such as age, condition and market availability that come into play. Realizing that a seller’s objective is to achieve optimal asset value, accelerated marketing looks at different sale scenarios and “designs a sale” for the property or includes the asset in a sale of similar assets that have gone through an asset stratification process.
What follows is a straight forward guide to aligning with a partner and getting started with a sale to achieve maximum exposure and the highest possible return for a seller. More >
A common question posed by property owners is whether an auction or sealed bid is appropriate for the property(or properties) they wish to sell. While both sales are actually “auctions” they are differentiated by the availability of bidding activity on the date of the sale.
When people think about auctions they envision participants openly bidding against one another, with each subsequent bid higher than the previous bid. An auctioneer may announce prices, bidders may call out their bids themselves (or have a proxy call out a bid on their behalf), or bids may be submitted electronically with the highest current bid publicly displayed. In some cases a maximum bid might be left with the auctioneer, who may bid on behalf of the bidder according to the bidder’s instructions. The auction ends when no participant is willing to bid further, at which point the highest bidder is the winner. Alternatively, if the seller has set a minimum sale price in advance (the “reserve” price) and the final bid does not reach that price the property remains unsold. Sometimes the auctioneer sets a minimum amount by which the next bid must exceed the current highest bid. The most significant distinguishing factor of this auction type is that the current highest bid is always available to other bidders. More >
On March 23, I went from the NAI Global Market Outlook in New York City back to New Jersey to attend an auction in Woodbridge for five multifamily properties in New Jersey and Pennsylvania. I’ve been watching the auction scene very closely as we ramp up for upcoming NAI PowerSales™.
The results were good but they didn’t surprise me. All five properties sold during less than 25 minutes of active bidding, with three going to the same bidder. There were about 60 active bidders in a room with more than 200 people including brokers, reporters and curious spectators. Prices were good with some cap rates actually surprising. More >
One distinguishing feature of banks and servicers that do a good job in selling notes and REO is that they develop an effective strategy to respond to offers once they are received. Selling the bank’s interest in distressed assets places many banks into a situation that requires a higher level of responsiveness to close a transaction than banks are used to. Banks are not built for speed, they are built to ensure that risk is property identified and to try and insure good investment decisions for shareholders.
When offers come in the marketplace assumes a timely reply. There are a limited number of quality buyers with the equity and depth to close in the market. We have seen quality offers to buy REO assets fail because a bank could not act or even reply in less than 60 days. Our advice to the banking community is to have a process that answers or rejects offers in 10 days or less. As all those contracts say, “time is of the essence.” More >