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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