What is so special about an auction? An auction is an event! It attracts attention all by itself; it’s exciting, thrilling and fun to attend! It compels a bidder to act or face losing the opportunity forever. Auction eliminates the uncertainty of selling in a turbulent market. Your real estate is valuable. We don’t guess about what its worth, we take it directly to the market and are not satisfied until the final high bid is received during the auction.
Why should I sell my property using the Auction Method?
- An auction brings the whole market together at one time where each bidder has the opportunity to immediately and directly challenge all other bidders. This competitive bidding returns a valuation on the property unobtainable with any other form of marketing.
- The client establishes when the sale will close and how soon the proceeds will be ready to put back to work.
- Ongoing costs of maintenance, tax, insurance, interest and advertising expenses are limited or eliminated.
- The buyer is responsible to inspect. The Seller makes no implied guarantees that give rise to delay and litigation.
- Property preparation costs are limited to what is appropriate for the client.
- Personal property is sold and removed by a certain date and time.
- The property will bring fair market value based on the terms and conditions the client sets.
- Property may be sold on an “absolute” basis or “subject to seller confirmation” depending upon the needs of the seller.
- An auction removes the necessity to deal with potential buyers one by one.
What types of property do you sell? We auction all types of real estate as well as associated personal property. Auctions are popular for a wide range of real estate marketing including residential, commercial, land and investment properties. From homes, apartments, commercial property, farm land, recreational property to development and acreage land, we have been successful with the auction method of competitive marketing.
How will my property be marketed? We coordinate with advertising specialists to find the correct combination of signage, print & broadcast media, direct mail, sale bill posting, Internet exposure, as well as press interest to reach prospects in the market for your property. All attention will be focused on your auction property while other property for sale in your area tends to stall until your property is sold.
How does the Auction Company get paid? A buyer’s premium is added to the successful bidder’s last bid, which is paid to the Auction Company by the buyer at closing. This is an open and honest means of compensation in that we only collect a buyer premium on the top bid made at the auction rather than on the total purchase price and we ensure that bidders are aware of the buyer premium before the auction.
What will it cost me to sell my property at auction? The seller will pay for the cost of advertising along with normal closing costs such as half of the title insurance, half of the closing agent’s fee, prorated taxes (if applicable), any mortgage or lien balances due and transfer taxes. If you engage in a tax free investment or business property exchange (Section 1031 of the Internal Revenue Code), additional fees will apply. We recommend that you seek legal advice or consult with a qualified intermediary regarding a tax free exchange prior to listing the property for auction.
What are the terms on the sale of my real estate? The successful bidder will make a deposit that is usually equal to 10% or more of the sale price, which is non-refundable if they are unable to close the sale. Closing will take place on the date the seller designates, usually within 30 days of the auction. The property will be sold as is with no warrantees or guarantees; however we must abide by applicable state and federal laws regarding condition disclosure and lead based paint hazards. The sale of the real estate is also not subject to buyer financing. That doesn’t mean they can’t finance the sale, in fact they usually do.
Will my real estate sell at auction? Our real estate auction listings successfully close the vast majority of the time, traditionally over 90% of the time. Ordinary real estate listings have a far lower success rate. Auction buyers come pre-qualified and they buy with no contingencies meaning less roadblocks to closing.
I want to sell at auction, what should I do? Take the first step by calling us so we can meet with you and evaluate your real estate. If your property is already listed with a broker, we would be glad to cooperate with them on your real estate auction. If you are attempting to sell your property by yourself, the auction method is your most effective option because you remain in control, you receive market value and the cost to you is limited.
Is there something we didn’t cover here? Still confused about auctions or selling your property with us, Contact us and we’ll get back to you within one business day.