The national auction platform of SVN offers both the national reach and local expertise across all property types to ensure that an asset auctions in an environment that creates maximum competition for maximum value. By doing so, we can best arrive at a property’s true market value. The auction process removes the paradigm of pricing by encouraging vast market penetration and creates the best forum to understand a property’s true market value. Formats that are used by SVN Advisors include open out-cry auction and sealed bid auction. More information about each format is listed below:
Open Out-Cry Auction
This is by far the most traditional and recognized method of the auction process. Terms are set by the seller. Pre-sale marketing and due diligence are conducted beforehand and the auction event takes place at a predetermined date, time and location. Bidders are pre-qualified with certified funds to bid and the event is open and conducted live in a competitive environment.
While this is similar to the Open Out-Cry Auction, offers are submitted in a Sealed Bid format to a certain location at a predetermined date, time and location. Offers are then opened in a closed-door environment. The price is reviewed by the seller with the terms of the offering having been preset. This format provides for more control over the transaction and is usually best suited for hard to value assets. In this case, the seller has the flexibility to request “best and final” offers from qualified buyers in the competitive range of pricing.