This Northborough Property is Not Your Banker's Auction
Come to Us for Central Massachusetts Commercial Real Estate
Thanks to the cooling off of the hot real estate market of a few years ago, many homeowners and commercial property owners have found themselves unable to pay their mortgages on time resulting in the flood of foreclosures we all read about. Although most lenders have made a serious effort to work with their borrowers to find alternatives to a foreclosure, such as a “short sale” or a “loan workout”, there are still more foreclosures today than in recent memory.
This has resulted in a large volume of foreclosure auctions. Bidders at these auctions expect to get “a deal”, and they’re often times successful.
The other outcome of the foreclosure auction is that we tend to associate “auction” with a “foreclosure” – and that’s unfortunate.
Auctions have been used from early times to help create a market place in which a fair market value can be established through competitive bidding. Owners like this process since it can speed up the sales cycle to weeks rather than months and bring about a “time certain” for a closing.
In today’s world most auctions are the “open outcry” style in which an auctioneer presides from a podium allowing audience members to offer their bids by holding up their bid card or similar recognition. It’s fun, fast paced and productive.
But there’s another type of auction gaining popularity as well. This is the online auction conducted in a style similar to an eBay auction. In this style the broker produces marketing materials similar to their standard format and will make these documents available by email, in newspapers, web sites and social media. The marketing phase runs for some weeks letting all potential bidders become aware of the auction including the date of the auction, any deposits required, inspections and due diligence desired by the bidders as well as taking care of financing arrangements before the auction.
And then comes the auction date. Instead of a physical attendance, bidders participate through the internet in about a four hour period. When the last and highest bid is received and the winner is announced, the winner will be asked to sign a purchase agreement and make another deposit. After completing final due diligence the winner closes the transaction and becomes the new owner.
This type of auction is well suited to the non foreclosure auction and appeals to the type of owner described above – one who wants to establish fair market value within a certain time frame.
If you would like to see an example of such an auction, visit www.auctionsvn.com/30main . Sperry Van Ness/ComVest Realty is conducting such an auction in mid November on a landmark Northborough building.
To see a video of the property and enjoy the many features of this property, click Video.
For more information, contact Robert Yale, CCIM
Sperry Van Ness/ComVest Realty
http://www.auctionsvn.com/30main
508-351-7079
bobyale@svn.com
Your Number One Choice for Central Massachusetts Commercial Real Estate