All types of real estate are sold using the auction method of marketing and sale. In Australia for example it is reported that most of the real estate is sold at auction.
The amount of real estate sold at auction in the United States is growing by billions of dollars every year. When do auctions work best? When there is a high demand for a property, and the property is being offered for sale for the first time, auction works best. Properties that are unusual and therefore difficult to appraise also usually have excellent results at auction. In an economic downturn when property needs to be sold, only an auction can create the necessary interest, excitement and competition needed to bring about a quick sale at fair market value.
When selling multiple properties or offering large parcels of land, the auction method of sale is the only method that permits the selling of multiple properties or tracts of land at the same time.
This is beneficial because it allows all interested buyers to bid on small individual parcels, groups of parcels or the complete property as a whole. All can bid. The next door neighbor can bid on one or more parcels. The large corporation across town or across the world can bid on groups of parcels or the whole package. Each bidder desiring a different property or group of properties, competing against each other. This type of auction allows the seller to receive all offers at the same time, thus maximizing the end result for the seller, while giving all bidders the same opportunity to buy.