Online auctions, popularized by companies like Christie's, Mecum, and Sotheby's, have transformed the buying and selling of high-value assets. And this trend extends to commercial properties, offering convenience, accessibility, and global reach to all parties involved.
Why choose online auctions for your CRE transactions? With a streamlined process and set timeline, auctions accelerate transactions, leading to quicker sales and more certainty of closure.
Online auctions ensure transparency and competition, allowing interested parties worldwide to compete for properties and discover their true value. They maximize value for sellers by broadening exposure and generating increased interest while providing buyers with confidence in fair market price.
Our auction process consists of five stages:
- Asset Evaluation
- Onboarding
- Marketing
- Online Auction
- Contracts & Closing
Before the Auction—Asset Evaluation, Onboarding, and Marketing
From list to close, we work closely with our broker and seller partners to ensure that your goals are achieved and the value of your CRE is maximized.
Asset Evaluation
We thoroughly evaluate each of our assets upfront and work with the broker and seller to establish a reserve price that aligns with the market. Our platform ensures accurate pricing by leveraging CoStar's extensive data set, real-time market conditions, and direct market feedback, in turn facilitating fair and successful transactions for buyers and sellers alike.
Onboarding
One key difference between Ten-X and traditional transactions is that we provide due diligence upfront, equipping our buyers with crucial information from the start and further empowering their investment decisions. In fact, having these due diligence documents available is a prerequisite for listing on our platform.
By providing comprehensive overviews, contingencies, and surprises are significantly reduced, resulting in greater certainty for all parties involved.
During the onboarding process, each property receives Matterport 3D imaging, professional photography from our Architectural Photographers, and drone videography to ensure that it will be effectively showcased to potential buyers from all angles.
Marketing
After onboarding, each property goes live on the Ten-X, LoopNet, and CoStar websites with custom listing pages that include our professional photography, 3D virtual tours, and drone videography.
Each property additionally receives a customized 45-day marketing plan, which begins immediately upon listing.
We combine the power of Ten-X, CoStar, and LoopNet, to deploy best-in-class digital marketing, AI targeting, and personalization to create campaigns that reach the right audiences, at the right place, at the right time. Each property receives social media promotion, email marketing, search engine optimization, and print marketing.
As the marketing campaign runs, brokers and sellers can use their personalized dashboards to track the progress of their property.
During the Auction
Once the property is listed on the Ten-X platform, a specific date for auction is set—typically within 45 days of listing. Potential buyers can read about the property, view its due diligence documents, and register to bid up until the auction begins. Once the auction has begun, the bidders have a 2-day window to submit their bids online.
Throughout the auction, sellers and brokers can use the Auction Dashboard to monitor the results in real time.
After the Auction—Contracts & Closing
Once the auction ends, there are two phases for buyers and sellers to complete before it’s time to celebrate—contracting and closing. Ten-X's comprehensive approach includes no contingencies, pre-qualified buyers, a set timeframe, and upfront due diligence, minimizing uncertainties, accelerating the transaction, and increasing confidence for all parties involved.
After the auction, the buyer will automatically receive the Purchase and Sale Agreement (PSA), which they will have 2 hours to sign. Then, the seller will need to electronically execute the PSA. After this is done, the buyer will have 24 hours to wire a 10% non-refundable earnest money deposit (EMD) so the transaction can move into escrow.
Ten-X achieves an average closing period of 30-45 days, far shorter than traditional methods. With a remarkable 96% closing rate for contracted properties, Ten-X consistently facilitates fast and certain transactions.
Interested in learning more about the contracts & closing process? Read our in-depth guide to contracting and closing for Ten-X buyers and sellers.
Ready to close transactions faster and with more certainty?
Ten-X's online auction process revolutionizes commercial real estate transactions. It offers brokers and investors heightened certainty, accelerated speed, and enhanced transparency. This results in a more efficient and effective sales process, benefiting buyers and sellers alike.
Unlike lengthy traditional commercial real estate sales that can span over 13 months, Ten-X offers a streamlined process, going from list to close in an average of 96 days.
Looking to accelerate your next transaction? Get in touch with a member of our team today.