Frequently Asked Questions
Q. Why should I sell my property using the auction method?
A. To accelerate the sale of your property by generating additional consumer interest and activity. Non-contingent contracts and thirty-day settlements are required of all buyers of auctioned properties. This means a quick transaction for you.
Q. Do you work with brokers and the MLS?
A. Absolutely. We offer competitive compensation for bringing a buyer who ultimately purchases the property. We also offer referral fees to brokers. For brokers, the transaction is easy since the sale has no contingencies.
Q. Can I attend an auction before agreeing to selling my property through the auction method?
A. Certainly. We encourage your attendance, so you may experience a live example of the auction process firsthand. Just talk with one of our associates about our upcoming schedule of auctions. Remember, each and every auction is different, so you cannot necessarily assume that your auction will be exactly like the one that you attend.
Q. I am not in financial trouble, and I’m concerned about what people might think if I should do an auction. Can you give any insight on this?
A. You are not alone in your concerns. Many people are afraid of the old, outdated perception of auctions that some people have. There are great differences in the marketing-and the public’s image-of a voluntary, “by choice” auction such as ours versus a distress auction. Our auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price for your property.
Q. I am concerned about the net amount I’ll realize from the auction because I have to cover my mortgage. What advice do you have to offer on this?
A. We understand your concerns and your need to cover an existing mortgage on your property. Auctions are designed to accelerate the sale of property by determining what the market is willing to bear. On auction day, the market will determine what valuation is acceptable for your property. The fact that you are doing an auction does not change what the market value of your property is. In short, if the market value is at a level below your existing mortgage, then that is the price that you have to work with regardless of whether you use the traditional method or the auction method to sell your property. It is possible, however, to auction your property with a minimum bid that you are willing to accept.
Q. The property is priced below the market right now. What is this going to mean if I register it for auction?
A. Often times we find that the price is not the only issue when a property hasn’t sold Sometimes a property has become “stale” on the market. Auction differentiates your property from the rest and creates excitement and a sense of urgency that coaxes buyers into action.
Q. What types of property do you sell?
A. We auction all types of real estate from single-family dwellings to land, commercial, and investment properties.
Q. How often do you hold auctions?
A. We conduct auctions throughout the year. You will need to check with our sales associates about the registration deadlines to enter a property into auction.
Q. What are the various auction methods?
A. There are several types of auctions we utilize
- Absolute Auction
- Reserve Bid Auction
- Sealed bid Auction
- Hybrid auction
Q. What is the best auction method to use?
A. The surest way to affect a sale is to auction “absolute.” Though an absolute auction you will generate the greatest competition which will lead to the strongest offer for your property. Another method is the “reserve” auction that allows you, the seller, to choose a floor price. The third method is the “Sealed Bid” auction which typically doesn’t involve a live auction, but rather will invite bidders to submit their bids via a bid package. At a designated time, all the bids are examined and a high bidder is chosen. “Hybrid auctions” can combine elements of the other three types of auctions.
Q. Where will the auction be held?
A. We typically, but not always hold real estate auctions on site. By being on site, bidders are constantly reminded of the positives associated with that particular property, which in turn might encourage a higher bid.
Q. If I put my property up for auction, do I have the right to refuse the bid?
A. On a “reserve” auction, you have the right to refuse offers below the minimum bid level we set in advance. When you elect to use the “absolute” method of auction, the property will be sold to the highest bidder regardless of price.
Q. Will we still have to consider contingent contracts?
A. Everything that we sell at auction is sold “as is,” “non-contingent,” with a thirty-day projected settlement date and the buyer paying all allowable closing costs associated with the sale. There are times with a pre- or post-auction offer that a contract may be contingent upon a home inspection or financing Such an offer will be presented to you for consideration.
Q. Does “as is” mean that I don’t need to disclose any known defects?
A. Though we are selling “as is,” we must abide by all applicable state and federal laws regarding disclosure of facts about the property. Typically, the more information a buyer has before the sale, the more comfortable he/she will be. As a result, such a buyer will be willing to bid more. Often as part of our services we will provide a full professional inspection report to potential bidders.
Q. How is my property marketed by your company and who pays for this service?
A. Our comprehensive auction marketing program may include the following:
- Brochures
- Direct Mail
- Internet Exposure
- Classified Advertising
- Major and Regional Newspaper Advertising
- Business and Investor Newspaper Advertising
- Auction Signs
- Online Bidding
- E-mail to targeted groups
- Broker Flyer Distribution
- Auction Day Staff
If you opt to use the absolute auction method, there is no charge for these marketing services.
If you select one of the other auction methods, there is an upfront fee for these services that is refundable to you if the property sells and closes.