Frequently Asked Questions
What is a Real Estate auction?
A real estate auction is a very rapid and effective way to sell property in a public sale. It involves an intensive, targeted marketing plan designed to focus attention on your property, while providing qualified buyers competing for your property with no contingencies, as opposed to your property competing with other properties in the traditional sales methods.
SELLER:
Why should I sell my property at auction?It is targeted to prospective qualified buyers.
Buyers are motivated.
Buyers compete for your property rather than your property competing with other properties for the buyers.
Seller sets terms and conditions of sale and time of sale.
The sale is with no contingencies, such as financial (buyers are qualified): or repairs; buyers can inspect the property and know its condition before bidding for the property.
Aren’t all auctions “Desperation” last resort efforts to sell property?
NO. More and more sellers are choosing the auction method of marketing to speed the sale, eliminate the holding costs of ownership such as mortgage payments, taxes, insurance, and maintenance that frees their money for other uses. Auctions bring fair market value.
What kinds of auctions are available for the sale of my property?
Auctions with a reserve, subject to owner confirmation.
Absolute where the property sells to the highest bidder, regardless of the bid price.
Sealed bid auctions.
BUYER:
Why should I bid at a real estate auction?The seller is motivated to sell on the sale day.
Due diligence is provided ahead of time to prospective buyers; i.e.: zoning restriction:
easements, etc. so that the buyer knows what they are buying at the time of sale.
Auctions are conducted in an open forum to assure fair and competitiveness in bidding thus assuring a fair market price.
Buyer sets his price.
Buyer knows what others would pay for the property as bidding progresses.
Do I Need to Register?
Yes, in order to bid at the auction you must register. To register, you will be required to show evidence of certified check, cashier’s check, or a bank letter of credit for the required amount of your deposit as well as a form of personal identification. (Please make all checks payable to yourself) You will be issued a Bidder’s Card with your bidder number.
Do I need to bring a broker with me?
It is not necessary to have a broker to assist you at the auction, but you may if you wish.
Is there a starting bid?
The auctioneer invites an opening bid for each property at a price level he or she believes will stimulate competitive bidding while high enough to speed the sale, but in reality, you start the bidding.
Will I be able to understand the auctioneer?
Yes. Our auctioneers call bids in an easy to understand manner and cadence. Our bid assistants assist you when bidding by getting the auctioneer’s attention and making sure you know what the bid is. Work with them and they will help you.
When can I see the property?
Open houses are held approximately two weeks prior to the auction for you to inspect the property and by contacting the auction company you may view the property by appointment.
What happens to my earnest money if I decide before closing date not to buy the property?
Your earnest money will be forfeited if you fail to consummate the sale for any reason. If the seller defaults for any reason, your deposit will be returned to you immediately.
REALTORS:
Why should I consider auction marketing as a selling tool?- It is another method of marketing to offer my customer in selling their property.
- Offers my customer the option to have a rapid sale at true market value that reduces the customer’s holding costs on difficult to sell properties.
- Earn more commissions from referrals of difficult properties to sell.
- Earn commissions by bringing the successful bidder to the sale.
- By cooperating with the auctioneer, generate leads of qualified buyers who attended the sale.
