Pictured: 16-18 E Preston, a 7 Unit apartment building in Mount Vernon. The asset is currently under contract, and was available via a recent auction sale event.
In an environment where interest rates remain elevated and underwriting is tight, multifamily owners are increasingly exploring new ways to bring their assets to market. One trend gaining noticeable traction? Auctions.
Harbor Stone Advisors has observed a growing number of clients pivot toward auctioning their properties. The strategy offers sellers more control, faster timelines, and, in recent cases, stronger pricing outcomes than traditional open-market listings.
Why the Shift Toward Auctions?
Speed and Certainty
Unlike traditional deals that can stretch for months with unpredictable timelines, auctions typically close within 45 to 60 days. For sellers navigating expiring loans, partnership transitions, or time-sensitive goals, this certainty can be invaluable.
In most cases, winning bidders are required to submit a non-refundable deposit shortly after the auction, reinforcing buyer commitment from day one. Properties are also sold on an “as-is, where-is” basis, which minimizes post-contract negotiations and expedites closing.
Qualified Buyers, Fewer Surprises
Auction processes require bidders to register, submit proof of funds, and place a deposit. This results in a pool of serious, financially vetted buyers and a lower risk of fall-throughs after the winning bid.
Transparent Market Feedback
Auctions deliver a clear, real-time snapshot of buyer demand. Competitive bidding helps determine true market value based on what investors are willing to pay today.
Tailored Control
Auctions offer flexibility across key decisions, from setting a reserve price that protects the seller’s bottom line to shaping the marketing strategy, auction timeline, and terms of sale to align with the seller’s specific objectives. This level of customization allows sellers to approach the process with confidence, knowing they have control over how their property is presented and transacted.
Digital Reach
Online platforms have made it easier than ever to market listings to a global audience. Bidders no longer need to be local or in the room. This expanded reach has the potential to generate stronger competition and higher bids.
Advantages of Partnering With Harbor Stone Advisors
Harbor Stone Advisors offers sellers a distinct advantage through strategic partnerships with established auction platforms. By combining Harbor Stone’s proprietary multifamily buyer network with the software and marketing infrastructure of leading auction companies, sellers benefit from a dual-channel exposure that amplifies their reach.
This collaboration enhances the efficiency of the sales process by streamlining buyer engagement, simplifying scheduling, and generating broader interest through multiple marketing engines. Properties are not only positioned to attract more qualified bidders but also benefit from coordinated efforts between two experienced teams working in tandem to ensure optimal results.
For multifamily owners seeking a swift, targeted disposition strategy, this partnership-driven auction approach offers a compelling alternative to the traditional listing process.