The Auction Method of Selling Real Estate

How would you like to sell your property for market value in less than two weeks and not pay commission?
Having a real estate auction can do this for you. This method is the most efficient this is a win win for both the buyer and seller The seller's property is sold quickly and efficiently saving long term costs such as interest, Real estate taxes and maintenance. This is a smart decision when you consider that auction properties are purchased at fair market price driven by competitive bidding in an open forum by motivated buyers that usually buy with cash or secured funds.

The only genuine measure of real estate value is what someone else is willing to pay.
The real value is what it will bring under competitive bidding from motivated and informed buyers. Real estate auctions at times were once thought of as fire sales were someone cannot meet their mortgage payments but the majority of auctions today don't result from repossessed properties but rather from a smart seller who chooses the quick and efficient cost effective method of selling a single property or a large development. Rather than working for months or years the fast sale by auction eliminates the long term costs and allows the owner of the property to move on to their next project.

Is your property suitable for an auction?
Most properties, but not all are suitable for auctions. Most Commercial property, vacant land, single family homes, condominiums as well as development properties are very desirable for auctions. But before an auction company accepts the project it must analyze the property closely and know the market to insure success for both the buyer in the seller.

This success often is determined by the desirability of the property, this includes location, and its surrounding properties, and realistic expectations of the seller and aggressive marketing to perspective buyers.

The Auction Process

We will first determine the suitability of your property for auction. Then we begin an intensive advertising campaign well timed and targeted at suitable qualified buyers using flyers, brochures mailed to prospective buyers, newspapers, local or national trade journals and magazines, radio and television outlets, the Internet, and signs on the subject property. There will be a definite date and time set for the sale this will motivate potential buyers to get there finances in order so that when they arrive to bid they know what they can and are willing to pay for a property.

Marketing Time varies depending on the type of property to be auctioned. Some Properties can be auctioned off in as little as 10 days. With 30 days to close; other properties may take as long as 90 days to close. The auction itself can take as little as 5 minutes to sell a single family lot or as long as all day to sell an entire development.

Sale Day: We will set up a registration desk at the Auction site at least one hour before the set sale time. The property will be open and available for potential buyers to examine prior to the start of the sale. If the sale is held out side at the property site we will set up a tent for buyers to register under. If the auction is for multiple properties out side we will set up a large tent able to hold hundreds of bidders. If it is not feasible to hold the sale on site due to various locations of multiple properties the sale will be held at a suitable location such as a meeting hall, recreation center or banquet room.

Sale Time: At Ten minuets and five minuets before time the sale is set to start the Auctioneer will announce "the sale time" to give bidders time to finish their examination of the property and gather in front of the auctioneer. At which time the auctioneer will go over the announced condition of the property and the terms of the sale.

The Auction: The auctioneer will begin to call for bids he will be in total control of the sale the bid increments will be at his discretion. There will be ring men out in the crowd to assist both the bidders and the auctioneer. If a bidder does not understand the amount of the auctioneers last bid was he can ask the ringmen and can also bid to the ringmen and he intern he will pass the bid on to the auctioneer. The auctioneer will give every bidder a chance to bid, he will make sure the bidders understand how much each bid is and work hard to get the seller the maximum amount for his property.

The End of the Sale: Once the auctioneer has dropped the hammer and yelled sold. Then the buyer must be ready to put a 10% deposit down and sign the purchase and sale agreement. The sale will be completed and closed within thirty days at which time the seller will receive the net proceeds from the sale.

One question that gets ask frequently is "Do I have to sell if the auction doesn't bring the price I want?" NO. The auction can be SUBJECT TO RESERVE leaving the seller the right to accept or decline any bid with in a determined time.

The Absolute auction (without Reservation) is sold to the highest bidder regardless of price. This type of sale will bring out real excitement in the buyers because they are guaranteed the property will be sold. It generates larger crowds and the highest bids due to the heightened anticipation. The absolute auction can make some sellers nervous but it often brings a higher price than expected due to the excitement of this type of sale.

Other advantages to both buyer and seller are the buyers feel secure in knowing that other buyers are willing to pay close to the same price that they are. So the buyer based on many others bidding around him is able to make a comparable market analysis quickly adding to his comfort level.

The Auction process is very powerful it attracts attention from qualified buyers and sets a definite time and date that they must perform by. (THAT'S POWER)