One method for determining if an auction is the best marketing strategy is the TWO THIRDS RULE.  This is an analysis of market, property and seller situation.  Generally, if two of the three analysis parts suit your situation, then auction should be considered as a sale option.  

Market Analysis

• These market situations set a favorable option for auction
  • A changing market
  • A dull market
  • Insufficient amount of property type (lakefront, commercial, etc)
  • An emerging market or new development areas
  • Property in high demand

Seller Analysis

• These seller situations set a favorable auction option
  • Need for immediate cash
  • Partnership or marriage break-up
  • Moving out of state
  • Desired liquidation of an estate
  • Retirement
  • Auction-minded seller
  • Recently purchased another house
  • Auction will deliver fair market value
  • Financial problems
  • High carrying cost on property

Property Analysis

• A good auction property possess
  • A lot of equity
  • Is unique
  • Is vacant
  • Is difficult to appraise

Most properties are sellable by auction.  Residential properties (i.e. town homes, condos, cooperative apartments, and single family homes), commercial and industrial properties, vacant land and even boat slips are sold at auction.