By Omar P. Bounds III A.A.R.E., C.E.S., G.P.P.A.
The Bounds Auction Company
During the last 24 months, sold and closed commercial real estate transactions have been in short supply, while unsold properties seem to have increased exponentially. The last cycle in which CCIM practitioners experienced a somewhat similar market was the late 1980s and early 1990s. During those years, large property portfolios were timely and effectively sold by the Resolution Trust Corp., banks, and private sellers through real estate auction programs that came into vogue. While negotiated transactional sales were few or nonexistent, auctions and accelerated marketing programs established current true market value in a competitive bidding environment.
Today, decreased values and foreclosures of commercial assets are pervasive once again as a result of the credit crisis. As banks, institutional lenders, and private and corporate sellers expand their real estate-owned or workout situations, the question arises: How can we move these properties off our books on a timely basis at market prices?
Real estate auction marketing can be an effective alternative to the more-static negotiated sales marketing model. Open outcry,Sealed Bid auctions and other types of accelerated marketing techniques are efficient methods for the timely sale of most commercial real estate assets. In recent years a number of CCIMs and other real estate professionals have become involved in open outcry auctions or sealed bid sales as their traditional negotiated sales volume has declined. These auction programs have helped clients extricate themselves from difficult-to-sell properties.
Do you have a property or a client in need of a timely sale?
No comments:
Post a Comment