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Sellers
Why Auctions? | Marketing | Seller Characteristics | Seller Benefits | Seller Costs
What is a Real Estate Auction?
A Real Estate Auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property - most certainly including those that are non-distressed - through competitive bidding. The combination of the Ebay culture and the thrill of bidding has made the idea of buying and selling real estate more palatable for the real estate process. Combine that with a marketplace that is languishing in many parts of the country with the ability to move one’s property makes the idea of using an auction the choice of many home owners.
Are Auctions Right for You?
- You must have realistic expectations that includes a fair sales price, terms and timing.
- Evaluate the desirability of the property- This includes location, condition of the property, value of surrounding properties, and the amount of equity (price less what you owe) that your have in the property.
- You can choose to sell your property in a variety of auction methods. Carefully choose the auction method that best works for the property and your needs.
- Absolute Auction – An auction is where the property is sold to its highest qualified bidder with no limiting conditions or amount. This method generally draws the largest crowd and results in the highest bid.
- Minimum Bid – The seller establishes the starting bid, preferably no higher than 80% of the desired sellers price. The auctioneer will only accept bids at or above this price. This amount is usually published in promotional materials and is announced at the beginning of the sale.
- Reserve Auction or With Seller Confirmation- An Auction in which the seller reserves the right to establish a price or to accept or decline any and all bids. The minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified term. All auctions are with reserve unless otherwise noted. The reserve isn’t popular among auction goers.
A lot of properties never even make it to auction. The marketing activity leading to the auction prompts a lot of buyers to make a preemptive bid. You have to trust in the Market! It will determine the value of your home.
Marketing
Because the lead time in a real estate auction is generally short, the marketing program must be comprehensive, intense and targeted to buyers. We will work with you to establish a specific budget to properly expose the property to the market.
What do we do to Market your Property?
- Targeted direct mail
- Print Advertisement in local, regional and sometimes national newspapers, magazines and trade journals
- Attractive attention getting signage at the property with lots of directionals
- Placement in our custom designed web site that will be linked to other auction web sites and search engines to be viewed locally, nationally and around the world
- We are licensed Brokers in the Commonwealth of Virginia. We will immediately offer your property for sale in the Multiple Listing Service. Giving you exposure to thousands of Real Estate Agents and Prospective Buyers. We will make your property available for purchase even before the auction
- Offer online bidding – Someone can bid on your home from the comfort of their home or office
- Prepare a comprehensive custom designed Bidder Information Packet. This packet is available to all buyers and will give them all the information about the property that they will need to purchase your property.
- Prior to the Auction we will do two Public Previews/Open Houses at the property so that perspective Buyers will have an opportunity to view your property prior to the auction. We will also have a loan officer on site for any financial question
Benefits to the Seller
- Buyers are qualified and come prepared to buy
- Quick disposal reduces long-term carrying costs, including taxes and maintenance
- Assurance the Property will be sold at TRUE market value
- Exposes the property to a large number of pre-qualified buyer prospects
- Accelerates the Sale – Most properties close in 30 days
- Creates competition among buyers- the Auction price can exceed the price of comparable properties
- Requires potential buyers to pre-qualify for financing
- The Seller knows exactly when the property will be sold
- Eliminates numerous and unscheduled showing
- No Contingencies for home inspections, financing etc.
- Property is sold in as-is condition
- Takes the seller of the negotiation process
- Ensures Aggressive Marketing Program that increase interest and visibility
- Broker participation is welcomed
Seller Costs
Unlike traditional methods of selling real estate the cost to a seller is minimal. The seller will pay a small upfront marketing fee based on a one on one consultation on what the best marketing options are to market your property to the public. This ensures you get the best exposure possible. Most all other costs and commission are covered by the Buyers Premium.
Characteristics of a Seller
- Needs immediate sale or cash
- Going through a marriage or partnership break-up
- Is moving out of state
- Has purchased another property
- Wants to liquidate an estate
- Is retiring
- Is Auction minded
- Has a listing with a traditional real estate broker that is about to expire
- Knows the auction will bring a fair market price
- Has Financial problems
- Has big carrying costs
Contact us for a free consultation!