Author: Stephen J. Martin & Thomas E. Battle
As mentioned earlier, one of the prime
reasons for utilizing the accelerated method of marketing is the speed of sale
and closing. This method of marketing significantly reduces the holding costs
associated with the real estate to be sold. The accelerated method of marketing
also places the seller in control of the transaction. The seller establishes
all the terms of the
sale with the exception of the sales price.
The date, time and place of the sale are all determined in advance. Many times
even the date of the closing is determined prior to the sale taking place!
The accelerated method of marketing focuses
full market attention on the real estate to be sold. This focus on the subject real estate allows for greater exposure to take place because marketing funds are expended
in a condensed period of time. Many times the amount of funds expended on an
accelerated marketing campaign will far exceed that allocated to a traditional
negotiated sale. This focus also helps to eliminate the procrastination factor
from potential buyers. It is a call to action for any interested bidder!
Studies have shown that buyers feel more
comfortable, in competitive bidding situations, if they know they are among
other legitimate bidders at an auction. In such situations potential buyers will
participate in the auction bidding process with confidence. They feel that
their judgment as to the value of the real estate is confirmed by other bidders
involved in the competitive bidding process.
A well conducted accelerated marketing plan
will create a situation which determines the "market value" on the
day of sale through the competitive bidding process. The value determined at a
well-organized and promoted auction will be the value of that particular real estate on that given day. Arguments can be made that such sales do not
qualify as having determined market value. But if you look at the process you
will see that it is what the market was willing to pay on that particular day.
This is being proven at auctions throughout the country every business day of
As mentioned earlier, an ancillary
advantage of the auction method is that it can identify all the parties even
potentially interested in acquiring the asset. Even an unsuccessful auction can
lead to a successful sale through negotiation with the parties who indicated an
interest while attending the auction.