Buying and investing in distressed commercial real estate is becoming more popular as 2020 comes to a close. Our country and our businesses have learned many hard lessons this year on how to keep our careers running from a computer screen. Commercial real estate has seen no exception.
After the CRE database giant Costar acquired Ten-X, real estate auctions have become an excellent and fast way to obtain new properties. Ten-X enables investors and brokers to buy and sell commercial properties without having to do any dealings in person.
Kevin Valente, ARM® certified, Sr. Property Manager, gave the following insight into why using the auction sites has benefited Sutton’s clients looking to sell property:
- Ability to get properties in front of legitimate buyers. Bidders in the auction have to be preapproved for their funds before the auction.
- All due diligence needs to be completed prior to the auction. Buyers have to put up 10% hard money within 24 hours of the winning bid.
- Transactions close between 45-60 days. If the buyer fails to perform, the owner keeps the money deposit and moves on to other interested bidders from auction day.
One of Sutton’s real estate associate brokers, Stephen Saleski, provided the following comments:
- What is so impressive is that the average listing on Ten-X gets over 3,500 unique views, which has been Sutton’s experience as well.
- 96% of the properties on the site go from list to close in 90 days, making it a very efficient way to market and sell properties. We as brokers get great marketing support and the platform works well.
In summary, the Ten -X end-to-end platform provides brokers with the ability to tap into full service transaction resources; provides sellers success by exposing their commercial property to the largest buying pool in the world.
A win-win for commercial brokers and commercial property sellers in a trying market during difficult times.
Collaboratively written by:
SIOR, Vice President,
Real Estate Broker
Sr. Property Manager,
Real Estate Salesperson
Real Estate Associate Broker