For example, consider a housing bubble, in which real estate prices are continually bid up pretty much across the board.
The main differences between an estate liquidation and a mere estate sale is the sphere of inclusion which in a liquidation can expand to stocks, bonds, real property, fine jewelry, coin collections and fine art.Often an estate liquidation is accompanied by realtors, attorneys, Certified Public Accountants, and appraisers, while an estate sale can be done by anyone with knowledge of value of household items and collectibles in question.[Part 4 of 4] By this stage of the game, many investors who bought locally and opted to manage the property themselves are desperate to get out.Many have been hammered by negative cash-flow, unruly tenants, and unexpected repairs.Several are convinced that real estate investing doesn’t work and are willing to sell at a steep discount to free themselves from their bondage.
If residential real estate is your game, then these are the motivated sellers you want to buy from.
This creates the aggregate effect of a sell-off in the real estate market as a whole, which would display relatively low prices on houses and strong selling pressure.
In this case, the real estate market would be said to be a liquidating market, as most of the market's participants are chiefly interested in liquidating their assets into cash at that time.
Estate liquidations happen mostly like estate sales, with the liquidators making the home and items to be sold ready for a public sale.
Most liquidators will charge a commission of a percentage of the net profit.
Property comes in two general classes: real property and personal property. Property in general is frequently looked at as an asset, both in accounting terms as well as in its ability to be liquidated for money.