April 15, 2021
For those looking for more information on commercial real estate auction platforms, this is where you want to be. An auction platform is just what it sounds like. It can be an online or real-world venue where commercial properties are bought and sold by way of an actual auction. This proves to be an especially relevant and agreeable process when it comes to the selling of unique or high-value properties.Â
As mentioned, a commercial real estate auction can take place online at various auction sites such as auction.com or the Real Estate Auction Network. Other sites might also offer additional online or virtual features.
Why would a commercial real estate professional choose a CRE auction platform? To start with, there’s the matter of market exposure. Auctions often attract highly motivated buyers. This, of course, leads to potentially higher selling prices for those listed commercial properties.Â
As well, with third parties invested in the sale of commercial real estate, the process can actually become more streamlined. Auction processes typically happen more quickly than traditional sales. Also, there’s the matter of the competitive bid, which can become a lively process and, in fact, drive up the price of a listed property which, of course, would be to the benefit of the seller. Â
This being said, there are things one should know before committing a listing to a commercial real estate auction. To start with, some auction platforms will have a reserve price at auction. This means that a listing will not sell if it cannot breach that price. While there is every chance of making a solid sale, there are no guarantees.
Also, there’s the matter of commissions and fees. An entry fee is assessed from the start, whether the listing sells or not, and a percentage of the sale price goes to the auctioneer or auctioning company. Commercial auctions affect the lives of many of our clients, so we feel those interested in these commercial real estate auction posts might also be interested in deploying the right commercial lease management software.