Lehman Auctions provides the following reasons for marketing via the auction method.
Speed and Economy.
Assets are marketed and sold within weeks, resulting in reduced carrying costs and overhead.
Assets are sold on a specified day and time. This creates motivation not available through other methods.
An auction is proactive. A full-scale marketing effort brings together qualified bidders who compete against each other fueled with the immediacy of the circumstances.
The retail buyer is looking for discounts on assets available as new or used through the wholesale market. Retail buyers provide higher returns for clients over traditional liquidator or dealer networks.
True market value is determined in an open, competitive forum.
- Auctions draw attention.
- Creates Competition among buyers.
- Exposes property to a large number of qualified prospects.
- Eliminates high carrying costs.
- Auctions bring interested buyers to a point of decision.
- Seller determines when property will sell.
- Auctions take the seller out of the negotiation process.
- Purchases property at true market value.
- Eliminates long negotiation periods.
- Buyers know sellers are motivated to sell.
- Buyers set their own purchase price.