Clay & Company » A Texas Commercial Real Estate Blog

A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property, distressed and non-distressed.

So how can auctions benefit you, as a seller? Why are they the best way to sell property? There are a number of reasons this method can be advantageous to you.

• Speedy Process, Quick Turnaround.
An auction is immediate. It happens during a set time and is completed during that time. Closing dates are a predetermined condition of the sale making the process is quick and efficient.

• Holding costs such as taxes, insurance and maintenance will be minimized through a more expedient sales process.It’s as simple as that. We work with you to schedule what works best for you. You can always include your property in our next multi-property auction to benefit from the combined monies and exposure, or we can hold a single property, on-site auction if it better fits you and your property.

• You Set the Time and Place of Your Sale.

• The Comprehensive Marketing of Your Property.
Part of conducting an auction is marketing it to the general public to get as many people there as possible. The auction process ensures an aggressive marketing program that increases interest and visibility. With our extensive mailing lists, full brochure, specialized websites, and widespread advertising we can guarantee that no one will get your property more exposure than we do.

• Buyers Come Prepared to Buy.
The conditions of an auction require potential buyers to perform their due-diligence prior to auction and to pre-qualify for financing.

• Competitive Bidding and Exciting Atmosphere.
Auctions motivate buyers to perform. People get caught up in the competitiveness of the bidding resulting in the fair market value of your property. There’s no more exciting atmosphere than an auction.

• Auctions Work Well in Both Good and Bad Economic Times.
Extensive marketing exposes the property to a large number of pre-qualified prospects. Statistics show, in a good or bad economy auctions remain a steady force with people still flocking to auctions looking for great acquisitions.

Clay & Company has been holding commercial real estate auctions since 1991. See our website for more information about participating as a buyer or seller. Our next auction is scheduled for May 20 in Houston.

Below is a summarization of an article on net-lease investments in the most recent issue of Globe St.’s Real Estate Forum titled “Long Term Rules in a Short-Fused Market”

• For some investors, net lease investment’s income potential scores over short-term capital gains other asset classes offer.
• Investors looking for quality net-leased properties won’t find them at distress-sale prices.
• However, the customary attributes of this niche sector – stability, predictable cash flow and low operating costs – combined with higher cap rates and more readily available financing make the long-term potential attractive.
• Net-lease investments provide a “conservative, low-risk way to invest” providing “good long-term income characteristics” versus short-term capital gains.
• Currently the market is showing net-leased investments separated up into three segments: properties that are well-located with highly-rated, investment grade tenants; properties with the aforementioned attributes as well as assumable debt; and properties with non-credit tenants.
• Choosing the right property is a balancing act between the tenant’s credit, the quality of the asset, and the structure and duration of the lease.
• When considering the real estate, many investors look for something that’s generic and multi-functional across several asset classes.
• “The first markets to get financing will be those that have the highest quality real estate and predictable cash flows…and that applies to the higher-rated net lease properties.”

Full article at GlobeSt.com’s Real Estate Forum

The future growth of the Greater West Houston trade area validates “Why rural land is a good investment”. The predictions from the West Houston Association of over 2,000,000 people in the 100 square miles outlined on the chart below in 2050 support the wisdom of investing in land in the west, south and north west. A&M’s Texas Real Estate Center reinforce this prediction that over 90% of the population in Texas will live in a triangle between Houston, Dallas, San Antonio and Austin by 2040. The I-10 corridors are the backbone for this predicted growth, with both residential and commercial development.

As an investor, the simplicity of buying land in rural counties offers lower taxes through an AG exemption and future lower development cost. The historical appreciation of this type of desirable land (rural, farm/ranch) can be measured in the major growth shown on the diagram west of HWY 6 which in the 1970s was rural farm and ranch land.

The cost of developing and owning land inside the West Houston Association diagram will be more complicated and expensive than it has been in the past with the future governmental controls from state and federal agencies.

From the February 2010 issue of REDNews by Sassy Stanton