The commercial auctions provided on the SVN platform allow for the promotion of all commercial property types. It is essential that commercial assets are positioned in an environment that allows for the highest levels of competition, and as a result, the highest possible value. By using an auction approach, we remove the necessity to price the assets included in our commercial auctions. This encourages the market to create an excellent outlet for understanding, and bidding on, the property’s true market value. There are a few auction formats used by SVN. Those options include the “online auction”, “open out-cry auction” and the “sealed bid auction.” More information on these bidding options can be found below.
In today’s commercial real estate environment most auctions are done online. With buyers and sellers located in every market and geographical region, it makes sense that they would want to invest in assets outside their market area. Performing an auction online exponentially increases buyer pools since investing can be performed wherever there is a secure internet connection. This is a huge advantage to sellers, particularly those who want to dispose of assets quickly.
Open Out-Cry Auction
This type of auction is very traditional and commonly used by those who run auctions. In this method, the seller of the real estate asset will set the terms. Pre-sale marketing and due diligence are taken care of prior to the auction. The actual auction event will take place at a time and location that is prearranged. The bidders who wish to participate in these commercial auctions are pre-qualified with certified funds and are encouraged to bid at the event. Biding is conducted in an open, live and competitive environment.
Sealed bid auctions are a bit different from the more traditional open out-cry auctions. With this type of auction, offers presented by bidders are submitted in a sealed bid format. All bids are submitted at a predefined location and at a specific date and time. Then, the offers are reviewed by the seller in a closed-door environment. This auction style provides a greater level of control over the selling of the asset. It is typically wise to use this method for assets that are difficult to value. With this method, the seller has the ability to request “best and final” offers from the bidding participants.