Longmont , CO
(720) 600-9513
Longmont , CO
(720) 600-9513

Tips for Your First Commercial Real Estate Auction

Category: Real Estate Auctions

Tips for Your First Commercial Real Estate Auction

October 27, 2022

Are Auctions Only for Foreclosures?

Many believe that properties only go to auction during the foreclosure process. While foreclosures often use them, auctions are also used to sell non-distressed properties on the open market. Depending on the property and the owner’s situation, an auction can be the best and fastest way to sell a piece of commercial real estate. 

Buying commercial real estate at auction is a unique process. As a buyer, be sure to educate yourself on the tips and tricks for success at your first real estate auction. When in doubt, your commercial real estate agent is an excellent resource in navigating the market. 

Tips for Commercial Real Estate Auctions

Here are a few tips to consider when buying commercial real estate at auction:

  • Type of Auction: A few different types of commercial real estate auctions exist. Be sure to consult your broker about the differences between reserve, absolute, sealed bid, online auctions, etc.
  • Tours: While the internet can showcase many details of a property, there is nothing like seeing it in person. Visit the building in person (some auctions only have specific dates and times when showings are allowed) and get a feel for the space. If possible, be sure to talk to the businesses that currently occupy the building.
  • Consider Renovations: As with any piece of real estate, it’s crucial to consider the cost and scope of renovations needed to make the building operate as you intend. 
  • Set a Budget: Numbers don’t lie in commercial real estate. Setting a budget and sticking to it throughout the auction process is critical to receive your desired return in the long run.
  • Control Emotion: Auctions intend to foster a competitive atmosphere to create higher bids. Controlling your emotion is vital in making a smart purchase and staying within your budget.

Build Your Real Estate Team

Building the right real estate team is essential in the commercial market. Please contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 regarding any commercial real estate needs in Longmont, CO, and our neighboring communities.

We give out $250 gift cards for referrals that become our real estate clients.

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Benefits of Commercial Real Estate Auctions

September 28, 2022

How do Commercial Real Estate Auctions Work?

Commercial real estate auctions can be an excellent alternative to the typical selling process. Usually, a building or piece of land would be listed for sale and shown to buyers. The seller then waits for interested parties to present their offers.

The auction process, however, presents a building to a group of interested buyers simultaneously. Buyers can submit bids during the auction period, and the highest bid is chosen when the auction closes. Some sellers require a minimum or reserve price to be met for the sale to proceed. 

Benefits of Auctions

Depending on the type of property and the seller’s situation, auctions can provide various benefits. 

  • Streamlined Sale Process: The auction process allows the seller to collect all bids or offers from interested parties within a specified time. As opposed to selling on the traditional market, going to auction streamlines the sale process.
  • Equal Playing Field: When all buyers participating in an auction agree to the same terms, there is less chance of an offer being chosen based on agent relationships, closing and possession details, or any other conditions. 
  • Virtual and In-Person: Auctions are held online, in-person, or a hybrid of the two, allowing them to reach a broad audience.
  • Pre-Qualifying Buyers: Often, buyers may need to give information regarding their financial situation and submit non-refundable deposits before the auction begins. Gathering these details ahead of time gives the seller an idea of who is serious. 
  • Transparency: Many times in a real estate negotiation, you may be aware that there are other offers on the table but not know the details. Auctions provide transparency and allow buyers to know exactly with who they are competing. 

Need Help Navigating Auctions?

Don’t hesitate to contact Steve Longenecker at WeBrokerCORealEstate or 720-600-9513 with questions regarding auctions or if you have any commercial real estate needs in Longmont, CO, and our neighboring communities.

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Longmont Real Estate Auctions

October 18, 2021

Real estate auctions are becoming very popular. Historically they’ve been very successful for commercial property sales, but are also being used for residential even during the crazy seller-dominated market we are in now. Here’s an example of a home auction held in Longmont just last summer: https://prestigeauction.com/longmontauction.

Sellers love auctions since they often get more buyers involved, which typically equates to a higher sales figure. Even more importantly, they normally get the property sold with fewer closing issues on a specific date. This is very important for commercial property owners, especially coming out of the COVID pandemic.

Please review the flyer here for more details and contact me with your questions or interest in this option for your future real estate sales, commercial or even residential in this case.

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