The Advantages of Multi Par Real Estate Auctions
Benefits for Buyers and Sellers
Real estate auctions offer up so many advantages to buyers and sellers that they wouldn’t receive in a traditional sale. From avoiding a lengthy negotiation process to the ease of selling, auctions are truly one of the best ways to sell property. However, did you know that a real estate auction can have even more benefits when the auction company makes it a multi parcel auction? Multi par real estate auctions have added benefits for the buyer, seller, AND the auction company, making them a no-brainer for larger real estate auctions.
What is a Multi Parcel Real Estate Auction?
A multi parcel or multi par auction is a type of real estate auction where the property for sale is broken up into different parcels before being auctioned off. This type of auction is typically seen during a land or farm auction – essentially anytime there is a large amount of acreage being sold off. Parcels may be broken up by location, suitability for specific crop plantation, or if they contain a house, barn or other outbuildings. Once the auction begins, buyers have option to bid on an individual parcel, a collection of different parcels, or the property as a whole.
Benefits for Buyers
Multi par auctions present a special benefit to buyers as they allow them to only bid on the land they are interested in. Maybe a neighboring farmer wants
to buy a few of the fields that back up to his property, but he has no need for the house located a few miles down the road. There might be a family looking to move into a home that has some land for gardening, but they don’t have the desire to run a full farm. Multi par auctions allow these parties to only bid on the specific parcels they want, breaking up the sale into smaller chunks for a larger pool of bidders. Of course, there could always be a bidder who wants to buy the whole property – and they can still choose to do that! Bidders have more control over what they are buying in a multi par auction which will have a positive impact on their auction experience as well as increase the number of real estate auctions that they will be able to participate in.
Benefits for Sellers
The multi par platform opens up a whole new side of real estate auctions for sellers with no additional risk! The first advantage is that there will be more bidders participating in the auction. Like we said earlier, some bidders may take part in the auction just to bid on a specific parcel of land. These are bidders who wouldn’t participate if the property wasn’t broken up. The bidders who are interested in purchasing the whole farm or building lot will still be there bidding, so now there are even more people interested in the property than before. Since a larger pool of bidders makes an auction more competitive, a multi par auction will bring in a higher final bid for the land. Two bidders might be competing for one field, while two other bidders are trying to win the house, while three bidders might be going back and forth for the whole property. Collectively, this competition will increase the asking price per acre – regardless if the property ends up being sold as a whole or not. Lastly, like all real estate auctions, multi par auctions give the seller a speedy
sale process. Instead of having to wait until a large buyer comes around to place an offer on the whole farm, multiple buyers can come in and quickly buy different parts of the property.