A Guide to Selling Commercial Real Estate at Auction
We often encounter people wondering, "Why should I consider selling my commercial real estate at auction? Is it the right choice?" The answer is a resounding "yes," and in this blog, we'll explain why. By navigating you through the step-by-step process of selling your commercial real estate at auction, we'll shine light on the journey ahead, clarifying the steps from property evaluation to the final handshake.
Step One: Evaluating Your Property
When selling your commercial property, understanding its value is paramount. You don't want to undersell, but setting an unrealistic price could scare off potential buyers. It's about making an informed decision and maximizing your property's potential.
Step Two: Preparing Your Property for Sale
As the saying goes, first impressions count. A few minor tweaks could drastically boost your property’s appeal. Whether it's landscaping improvements or critical repairs, these efforts can enhance your property's attractiveness to potential buyers. A clean, presentable property invites higher bids.
Step Three: Choosing an Auction Company
This is where we come in. At Grafe Auction, we are committed to ensuring your commercial real estate auction is as smooth and rewarding as possible. When choosing an auction company, you'll want to look for experience, knowledge of the market, and a proven track record of successful sales. You want a company that stands shoulder-to-shoulder with you throughout the process, and we at Grafe Auction aim to be that partner.
Grafe Auction
Step Four: Setting a Reserve Price (Target Price)
The reserve or target price can be a safety net. It's the lowest price you're willing to accept, and it's a figure set during the planning process. Setting this price that's both realistic and meets your financial goals can be complex. However, with our expertise and a thorough understanding of the market, we'll work together to identify a price that makes sense. Alternatively, if no reserve price is set, we allow bidding to get as high as it goes, and then we present the offer to you for your acceptance or rejection, so you are in control of the final offer.
Step Five: Marketing Your Property
How you present your property to the world is pivotal. The right marketing strategies can amplify your reach and draw a larger pool of prospective buyers. Here at Grafe Auction, we employ comprehensive marketing techniques, utilizing traditional and digital media to ensure your property reaches the right audience at the right time. In fact, marketing typically begins 3-4 weeks prior to the auction date. We focus on social media and email marketing, as well as search engine and display advertising, targeting the right customers in order to retain the maximum bid on auction day. Additionally, signs are placed on the property to attract local prospective buyers.
Step Six: Property Tours and Showings
Prior to the auction date, Grafe Auction schedules public open house dates for potential buyers. In addition, private tours are available to accommodate prospective bidders who are unable to attend the open houses.
Step Seven: The Auction Day
The auction day can feel like a whirlwind, but it's the moment where all the preparatory work comes to fruition. The auctioneer is the conductor, keeping the tempo of the bidding and ensuring a fair and transparent process. The excitement in the air is noticeable, and there's nothing quite like the auctioneer ending their call with the word sold, signaling the success of the auction.
Step Eight: Closing the Deal
After the excitement of the auction, the real-world mechanics of selling real estate come into play. Legalities, paperwork, and transaction processes need to be navigated. However, with Grafe Auction by your side, we ensure the process is straightforward and stress-free. Once the ink dries, it's time to celebrate a successful sale and look forward to your new ventures.
Conclusion
From the first step of evaluating your property to the final step of closing the deal, the journey of selling commercial real estate at auction is a meticulously crafted process. It's a journey that requires a strong partnership between the seller and the auction company, a relationship that we at Grafe Auction appreciate.
Ready to embark on your auction journey? Our team at Grafe Auction is here to guide you every step of the way. For more insights into the auction industry, follow us on our social media platforms - Instagram, Facebook, and LinkedIn. Our mission is to make your auction experience not just a transaction, but a celebration of new beginnings.
Let's start this journey together.