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Great Deals at Commerial Real Estate Auction

There is an exciting new element taking over the way real estate is bought and sold. Auctions of the past were where distressed or foreclosed properties were sold. Now sellers are looking at auctions as a quick and effective way to sell all kinds of property from commercial investments to luxury estates. This phenomenon is putting some fantastic deals on the table for investors or individuals looking for a great deal on a commercial property, estate, vacation home or investment real estate.

The real estate auction market rose 5.3 % in 2007, generating $58.4 billion in revenues. That's up thirty nine percent from 2003, according to the National Auctioneers Association.

The auction method of selling is a very effective method of determining the true market value of any given property. True market value is the value for which one is willing to sell, and another is willing to buy. When buying a property the traditional way you are always left asking, "I wonder if they would have taken a little bit less?"

There are two different types of auctions: reserve and absolute. In a reserve auction the seller reserves the right to accept or reject the high bid. In an absolute auction the property will sell to the highest bidder regardless of price.

The last two auctions I attended were both absolute auctions. One was a 6,500 sq ft metal building on two acres and the other was an 8,000 sq ft restaurant which was an out parcel in front of two hotels. At both auctions, there were only two buyers actively bidding on the property. It was definitely a buyers market. The metal building sold for $175,000 or less than 50 percent of traditional market value. The 8,000 sq ft restaurant was sold for $430,000 and had appraised for $1,000,000.

Every auction is not a home run like the last two I attended, but with a little research, and due diligence there are some great deals to be had. Whether you are looking for a commercial investment or a rental property let Granger Properties find your next deal.

We proudly represent buyers at auction and are actively seeking investors to attend these functions with us.

Archived Articles on Pensacola Commercial Real Estate