What is a Hybrid Auction?
A hybrid auction is an auction method that permits buyers/brokers to submit online bids for an offered property prior to the scheduled live public auction. In the event that a suitable online bid has been made, the seller has the option of accepting the bid and ending the auction prior to the scheduled live auction date. If a suitable online bid for the property is not submitted, online bids will be applied during the scheduled live public auction which will be open to all buyers/brokers in order to generate a fast, fair market price. In the unlikely event that a suitable bid is still not received during the live public auction online bidding will continue to be accepted for a predetermined period of time. The addition of online bidding adds another degree of buyer competition that can achieve an even faster sale at a price that is fair and acceptable to both the buyer and seller.
Benefits to the Seller:
- Ensures that the property will be sold at the true market value and at no risk to the seller.
- Takes advantage of an aggressive marketing campaign that showcases your property and generates buyer interest.
- Requires potential buyers to pre-qualify for financing resulting in buyers that come to the auction sale prepared and committed to buy.
- Creates competition among buyers resulting in a price that may exceed the price of a traditional negotiated sale.
- Reduces the seller’s long term carrying cost including taxes and maintenance by quickly transferring the property.
- Minimizes seller stress because the seller knows exactly when the property will sell.
- Eliminates numerous, unscheduled, and intrusive showings of the property.
- Removes the seller from the negotiating process while still allowing the seller to control the sale.
- Results in generating a fast and fair price for your property.
Benefits to the Buyer:
- Confirms that wise investments are made as properties are purchased at a fair market price through a competitive bidding process.
- Ensures that the buyer is dealing with a serious, committed seller.
- Minimizes buyer stress because the buyer knows exactly when the property will sell and close.
- Encourages fair competition as all buyers must adhere to the same terms and conditions.
- Supports an informed purchase as information on the property is provided to potential buyers via a due diligence packet.
- Reduces buyer stress further by eliminating long and oftentimes stressful negotiation periods.
- Results in a fast buy and close on the property of your choice and at a fair price.