Auctions on the Rise as Sales Tool in Frozen Markets
“Auction sales of residential, commercial and industrial real estate totaled $32.6 billion last year, up 5.3% from 2007 levels, according to NAA figures. Even more impressive, the dollar volume rose despite a steep drop in property sales overall. The association predicts that by next year, auctions will account for 30% of all real estate purchases. ”
Once written off by sellers as setups for lowballing, property auctions have earned growing respect in the current economic environment as a means of breaking the ice in frozen markets. Auctions offer sellers opportunities to turn illiquid assets into cash, and they offer bidders chances for possible bargains.