1031 Tax Deferred Exchange: a tool for buyers and sellers
1031 tax-deferred real estate exchanges have long been a tax-saving selling tool. With the ability to “swap” like-kind properties, property owners can avoid excessive capital gains taxes.
You might think such seemingly complicated transactions would be difficult to integrat with the auction marketing process. With our agents experience and a 40 year veteran CPA on staff, we know how to make it work for all parties involved.
Our agents can help you find an exchange partner and property best suited for your goals and investment portfolio. Call today to speak with one of our trained professionals: 731-285-5505.
Speed of the Process
Once a seller has agreed to auction property, a date is set for the auction from 6 to 8 weeks out. Sellers avoid long listing periods associated with other real estate sales methods and also abate the holding costs that may accrue during the time a property is on the market.
Property is Sold with No Contingencies
All properties sold are sold in “as is, were is” condition. Potential buyers are given ample time to inspect properties prior to the auction. Sellers do not have to worry about contingencies holding up the closing process, including financing contingencies.
Sellers Know Exactly When Their Property Will Sell
Sellers avoid the long listing period that may occur with other methods of real estate sales, especially when the real estate market is slow. Additionally, they avoid the unscheduled and interruptive showings.
With auctions, the normal 6-12 month real estate sales process is compressed into 4-6 weeks. This allows us to put together a blitz marketing campaign that can save money for sellers, because each marketing dollar has a great impact. We not only compress the marketing process, we implement a far more aggressive marketing campaign than other sales methods.
Lower Holding Costs
The timely sale of properties at auction reduces long-term carrying costs, including taxes and maintenance, that can accrue with other real estate sales methods.
Unlimited Price Ceiling
Competition among bidders is what sets auctions apart form other sales methods. Auctions are one of the only sales methods where buyers keep raising the bid, contrasted with other sales methods where buyers try to negotiate the asking price down. Simultaneous competition among buyers forces buyers into action.
Competitive bidding takes the seller out of the negotiation process. The bidders negotiate with each other until the high bidder is revealed. At that point, the real estate agreement is signed and the closing is set.