The auction method of selling provides many advantages:
- It provides the place for buyers and sellers to meet.
- The auction company develops a strategic marketing plan to merchandise the property to a vast number of potential buyers over a wide area. The property may be advertised in newspapers, direct mail, signs, on-line, TV, and radio. The advertising should bring competition among the bidders, thus resulting in a higher bid price.
- The auction may be advertised as absolute, or with reserve.
- The real estate may be offered in a number of tracts, a combination of tracts, or as one unit.
- The auction method is the only way of selling a parcel of land in tracts to multiple buyers, all on the same day.
- Auctions are timely, where the seller decides when the property sells, and the terms and conditions of the sale.