Auction Benefits For Both Buyers and Sellers 

  Auctions are mutually beneficial to both buyers and sellers and allow each party to walk away from the transaction content with the outcome.  There are many benefits to both buyers and seller, some are shared, but others are specific to each, but do not infringe on the other party.  When considering buying or selling real estate at auction, take the following benefits into consideration.

  Auction Advantages for Buyers:

Fair Competition Buyers know they are competing fairly and on the same terms as all other buyers while they openly compete with one another for the property.  In addition, buyers receive a comprehensive information package on the subecjt property in order to assist them in their decision making and in determining what, if any, inspections they feel is needed. Fair Market Price Buyers determine the purchase price through competitive bidding. Properties are routenely purchased at fair market value through the competitive bidding process.   Commitment To Sell The buyer knows the seller is committed to sell.   Know the Date and Time When purchasing property at auction, the buyer knows exactly when they will purchase the property they are interested in.   Reduced Negotiaton Process Offers can be made in seconds and the negotiation process usually takes less than 30 minutes. Each bidder immediately knows if they are the highest bidder and if not, provides the opportunity to increase their bid incrementally until they either are the winning bidder or reach their maximum offer.

  Auction Advantages for Sellers:

Reduced Costs Selling property at auction reduces the time your property is on the market thereby reducing carrying costs such as mortgage payments, taxes and maintenance, etc. Differentiate your property from all other local listings Once the auction-marketing program begins, sales on competitive properties that are for sale in the area are virtually eliminated until the auction sale is completed. Your property is usually the only property, or one of a few, in your market up for auction. An auction gives buyers and local real estate brokers the perception of getting a great deal, so they investigate and tour your property. High profile marketing campaign Don't get lost in the classifieds or the Multiple Listing Service (MLS). We create a multi-tiered approach to marketing your property that includes a full color brochure (in most instances), direct mail, Internet marketing, print advertising, public relations, signage and a 3 – 5 day open house just before the auction.   National, regional and local exposure Advertising is targeted to qualified buyers of real estate. Ads of up to a full page in size are created exclusively for your property. Many buyers of real estate are not local to the market. Our advertising reaches a larger audience so you get more interest in your property.   Reach more qualified buyers Buyers who attend auctions are serious and prepared to buy. Therfore it exposes your property to a large number of pre-qualified prospects. To attend the auction, and receive a bidder's number, each buyer must present certified funds from $5,000 to $100,000. Usually, a total of 10% of the contract price is due on auction day, with a closing scheduled within 30 days of the auction. Most buyers pay cash to purchase at auction, and no financing contingencies are allowed at an auction sale.   Choose your date and time When selling property at auction, you know exactly when the property will sell. We market your property to sell on a specific date established to suit your requirements. Selling a property and the moving process can be disruptive and requires extensive planning. There are advantages to selling your property on the date and time of your choice and convenience.   Eliminate disruptive showings We show your property during a preview period. Typically, this is a 3 – 5 day period before the auction date. This minimizes interruptions and the inconvenience of showings during business hours, on weekends, evenings, meal times, etc.   Bidders compete for your property An auction generates excitement and heightens buyer interest. It brings interested buyers to a point of decision - they must act now or lose an opportunity to purchase. When multiple bidders compete for your property, prices go up. An auction usually last less than 30 minutes for a single property, which creates a strong sense of urgency. Bidders that want your property will bid up to their highest possible price to avoid missing out. A traditional real estate sale is based on the premise that buyers negotiate down the price where at auction the price is "negotiated" up.   You obtain the best possible price.  Bidders are in direct competition with other buyers.  Strong competition for the property, may result in achieving a higher price than through the traditional sale method.   No contingency sale Property is sold in an "As Is, Where Is" condition. Buyers are not allowed any contingencies, including any for financing.   Normally close within 30 days The auction contract usually stipulates that closing shall take place within 30 days. Many cash buyers can and will close within a shorter time frame than the allotted 30 day time frame.   Seller is in Control The seller may stipulate the conditions of the auction to suit their circumstances and with the assistance of professional agents and auctioneers, the seller is in total control of the sale. Sellers set their own reserve price (minimum price), which is not disclosed to the public.  Sellers have 3 opportunities to sell their property - through an acceptable offer before auction, on the day, or through negotiations conducted afterwards, if the reserve is not reached at auction.

  Properties Suitable for Auction:

Most properties are saleable by auction. All types of residential, commercial and industrial properties, as well as vacant land are good candidates for sale through this method. There are some instances where the auction may not be a suitable marketing technique and those are situations when the property will only appeal to a narrow market and in those instances we provide a customized marketing plan for a conventional sale. A good auction property is one that may: Have a high percentage of equity. Be unique, but there are still enough potential buyers to market it. Be vacant - the auction process is fast and reduces the risk of liability and or vandalism. Be difficult to appraise - the auction provides the atmosphere where fair market value is achieved by exposing it to the greatest number of potential buyers. Be located in an area where there is an over supply of homes in relation to the number of buyers. Be sensitive to timing in its sale.   Learn more about the auction process.