AUCTION VS ORDINARY

Ordinary Sale Disadvantage	Auction Advantage
The sale process may last several months or even years.	The seller knows when the property will be sold because they set the date for the auction!
Incorrectly pricing a property may cause it to sit on the market for a long time if it is overpriced or sell too cheaply if it is underpriced.	The sale price is established quickly and efficiently by the auction process.
Advertising is usually minimal. It may be limited to the Multiple Listing Service for real estate sales.	An aggressive marketing campaign employs signage, newspapers & broadcast media, direct mail, sale bill posting, Internet exposure, press interest as well as MLS to target prospects.
Seller must deal with buyer's terms and negotiate each sale.	The seller sets the terms of the Auction once for all buyers and property.
Sales are normally contingent upon buyer's financing and inspections leading to repair costs and delays.	Auction terms specify sale is not contingent on financing or buyer demands for credits, repairs or decorating.
Prolonged carrying costs related to mortgage, taxes, insurance, maintenance etc. dramatically lower seller profits.	The timely sale of the property at auction significantly limits expensive carrying costs.
Drawn out price negotiations add frustration and take time.	The auction process eliminates prolonged negotiations.
The practice of price reduction is commonly used to stimulate activity and interest in the property.	The auction by its very nature creates excitement and interest in the property without resorting to price reduction.
Setting an asking price usually caps the maximum price the property will achieve.	At auction the sale price is free to rise to its true market value with no upside limitation.
There is nothing remarkable about the property because it is just one of numerous properties offered for ordinary sale.	All attention is focused on an auction property while the market on others is frozen until after the auction.