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METHOD OF SALE OPTIONS <br />AUCTION <br />DESCRIPTION: <br />Hire a third party to advertise and auction properties. The auctioning entity would be <br />responsible for marketing properties and executing the sales. Based on review of a couple <br />businesses, the auction entity does not directly charge the City. The auction entity would <br />require the buyer to pay a premium (about 5%). The City would have an option to set a floor <br />price. <br />BENEFITS: <br />Fast and efficient option for selling properties. Low staff time involved. Low principal —agency <br />problem. <br />DRAWBACKS: <br />Possibility of selling properties at a discount (market is weak right now). Low control of process. <br />AGENT <br />DESCRIPTION: <br />Hire a third party to advertise and sell properties. The agent would be responsible for marketing <br />properties and negotiating sales. An agent would charge a commission (about 5%-6%). The City <br />would work with the agent to set a sale price. <br />BENEFITS: <br />Reliable and efficient option for selling properties. Low staff time involved. In most cases, <br />highest sale price attained. <br />DRAWBACKS: <br />Principal -agency problem. <br />FOR SALE BY OWNER <br />DESCRIPTION: <br />Direct City staff to market and sell properties. Staff would place for sale signs on properties, <br />pursue marketing outlets as directed and provide customer service. Costs to the City would <br />include staff time and marketing fees. <br />BENEFITS: <br />If properties sell quickly, this would be a low cost option and the City would retain control over <br />the entire process. <br />DRAWBACKS: <br />City staff is not specialized in selling real estate and may not get the highest selling price. This <br />process would require dedicated staff. <br />