All properties can be sold at auction. A typical servicing plan by most lenders includes listing a property for ninety days and if it doesn't sell take it to auction in order to have the collateral sold in a six month time frame. However, be careful when listing because the list price caps the value of the property whereas an auction drives the price up using competitive bidding. Many asset managers make the mistake of allowing the broker to drop the list price rather than going to auction.
Specific Use
There are many cases when it is wise to go directly to auction. Any property where the function is tied to an ongoing business is a good candidate for auction. Lenders do not want to hold on to and manage going concerns and the value of the real estate is tied directly to the revenue these assets generate. If they go dark you are likely to loose half the value. These properties include :
Hotels - Golf course - C-stores - Gas Station - Car Wash - Dairy farm - Quarry
Aging Listings
Any property that has been listed for more than six months should go to auction. You have exhausted your brokers contacts and interest first generated when the property was listed. Now you need to revive interest in your property and there is no better way than through SAGE's marketing plan to saturate the market to revive interest and make prospects take action to compete for your property on auction day.
