The aviation real estate market is as unique as it is niche, requiring a sales approach that can navigate the particularities of both aviation needs and property desirability. As a seasoned Broker Associate with Saffer and Company (my former firm prior to AV8 Realty) and a partnership Fisher Auction Company, I’ve had the privilege of witnessing the formidable advantages of the auction method firsthand. Most recently, through the triumphant sale of a vacant land lot at the prestigious Naked Lady Ranch, nestled in the heart of a pilot’s haven.
The auction of this land not only shattered expectations but also showcased the unmatched potential of an auction to deliver superior results. Here’s a flight plan to understand why the auction method is ascending in popularity among savvy sellers.
Table of contents
- Charting the Course: Defining Terms and Controlling the Sale
- Preparing for Takeoff: Qualifying Bidders for a Competitive Sky
- Maximum Altitude: Global Reach Ensures Premium Pricing
- Smooth Landing: An Efficient and Defined Process
- Engaging Co-Pilots: The Role of Brokers
- Closing the Loop: Fast-Tracking to Transaction Completion
Charting the Course: Defining Terms and Controlling the Sale
In the traditional real estate marketplace, sellers often find themselves at the mercy of buyer demands, with transactions becoming a haggling match. The auction method flips this dynamic, empowering sellers like us to set the terms and steer the course of the sale. This means from the onset, the parameters are clear, the timeline is set, and buyers must align with our agenda, not the other way around.
Preparing for Takeoff: Qualifying Bidders for a Competitive Sky
One critical aspect of the auction process is the pre-qualification of bidders. Our recent sale at Naked Lady Ranch exemplified this, with bidders required to place a $10,000 hard escrow deposit in order to bid. The winning bidder would have to transfer the remaining 10% of the sale price into escrow within 24 hours of the hammer hitting the gavel. This not only ensured that the auction block was reserved for serious buyers but also fostered a highly competitive environment. The non-winning bidders had their $10,000 deposits returned to them same day.
Maximum Altitude: Global Reach Ensures Premium Pricing
When we auction a property, we don’t just list; we launch a global marketing campaign, reaching out to a vast network of potential buyers. This worldwide exposure is crucial in aviation real estate, where the buyer could be anywhere on the globe. The result? Fierce competition that often pushes the final bid beyond expectations – as was the case with the land auction that closed over 66% higher than its purchase price from two years prior.
Smooth Landing: An Efficient and Defined Process
Our recent auction success story was no exception to the efficiency of the method. Within 60 days, the property journeyed from listed to closed – a testament to the auction method’s streamlined and rapid approach. And with a clear “As Is, Where Is” stance, we ensure there’s no backtracking on price or conditions post-auction. All due diligence, including inspections, preliminary title search etc are done prior to auction day and shared with all potential buyers to offer complete transparency on the property. So when the hammer hits the gavel and the auctioneer says sold, the deal is hard.
Engaging Co-Pilots: The Role of Brokers
Far from excluding brokerage involvement, auctions actively engage the brokerage community, offering commissions that encourage participation and cooperation. This collaborative spirit broadens the reach and enhances the sale’s success. The winning buyer became a customer of one of our Aviation Real Estate Specialists here in Florida, after meeting our team at EAA Airventure, Oshkosh.
Closing the Loop: Fast-Tracking to Transaction Completion
In today’s market, time is of the essence. The auction method accelerates the sales process with aggressive closing periods, usually between 15 to 30 days post-auction. This not only benefits the seller with speed but also conveys seriousness and efficiency to buyers.
Our Naked Lady Ranch land auction exemplified these benefits – with three registered bidders on the day, it advanced swiftly to a sale that astonished the neighborhood, underscoring the robustness of the auction method.
In closing, the auction method is not just a means to an end; it is the premier pathway to selling your aviation real estate with full transparency, making it a win-win for both buyer and seller. It combines the certainty of a seller-defined process with the excitement of a competitive bidding environment and provides true market value.
For those contemplating the sale of their aviation real estate, or who simply wish to learn more about the buoyant benefits of the auction method, I invite you to reach out. Together, we can ensure your property sale takes flight and reaches the heights it truly deserves.
Contact Melanie Riddick at [email protected] for an exploratory consultation and elevate your property sale to new altitudes.
