Selling Real Property at Auction

Auction Marketing: How you will benefit

Auctions Draw Attention
Our professional proprietary marketing system creates a worldwide marketing campaign for your property. Exposure is improved far more extensive when compared to conventional listing efforts. Our program reaches thousands of qualified prospects not only in your property’s area, but also additional bidders worldwide.

Urgency to Buy is Created
When the advertising campaign for your property commences buyers will know immediately that you are committed to selling. This will let buyers understand that they must buy your property or risk not having a chance to purchase it later on.

Qualified buyers will be forced to compete openly and aggressively to obtain your property. Many times this creates such an urgency to purchase your property it is more likely buyers will pre-submit bids that many times result in a sale of your property before the auction even takes place.

Sell Your Property Quickly
Maximize the value of your property by ensuring that you do not waste the precious time/value of money. Most often only 3 weeks are needed to market the sale of your property and 30 days to close. Auctions are extremely fast when compared to simply listing your property the traditional way, waiting for offers.

Avoid High Holding Costs
The sooner your property sells, the greater your bottom line will be. Avoid and eliminate the many losses from the 15%-20% annual cost of non-performing loans, thousands of dollars paid in taxes, insurance and maintenance fees.

Value Can Be Demonstrated
A properly marketed and professionally conducted auction will invariably produce the top market price. Unlike conventional sales which set the price up and bargain down, the auction process demonstrates the demand and value of the property while bargaining up!

Quick and Easy Close
A property sells "As Is with No Contingencies". A 30 day close is standard, in most cases.

No or Low Commission to Seller
The buyer pays most, if not all of the commission through a buyer’s premium. Literally saving the seller thousands of dollars you would traditionally be paying out in commissions through the conventional real estate sales methods. You will pay nothing more than advertising costs and you can accept or reject the high bid below what your reserve may be.

Types of Auctions Defined

Absolute Auction
An Auction in which the property is sold to the highest qualified bidder with no limiting condition, contingencies or amount on the specified auction date. By nature it promotes a sense of urgency for any interested potential buyer to perform by a specific time or forever lose the opportunity to buy. Absolute Auction is the only form of marketing your property that will convey this message without qualification. Absolute Auction informs buyers that the seller is committed to sell; therefore, attracting buyers committed to buying. By using the Absolute Auction method, we will attract the largest pool of qualified buyers to compete for your property. This creates greater enthusiasm and more active bidding.

Reserve Auction
An Auction in which the seller reserves the right to establish a reserve price, to accept or decline any and all bids, or to withdraw the property at any time prior to the announcement of the completion of the sale by the auctioneer.

Confirmation Auction
An Auction in which the seller accepts or declines the highest bid on auction day.  

Auction Methods

On-Site
The Auction will be conducted on the actual property. Bringing bidders onsite allows them to be constantly reminded of the positive aspect of your property, thus encouraging higher bids.

Live Online
Utilizing an innovative and dynamic auction platform with the most advanced technology available, we will use our service providers to broadcast the auction simultaneously during the LIVE auction event. Registered online bidders will be competing against the live auction bidders during the auction. This feature also allows the online bidders to view and to hear the live auction in real time.

Sealed Bid
A Sealed Bid Auction is an auction where bids are not made known to the bidding public. Sealed Bid procedures vary from mailed or fax bids, to procedures where people congregate to submit sealed bids at a common site. Sealed Bid options may feature one round of bidding, whereas other procedures allow for frequent rounds of bidding continuing until a high bid is determined. Sealed Bid method is usually recommended in an environment which might not have a lot of competitive bidders.

Ballroom/Consignment
A Consignment auction is one which a seller enjoys additional marketing and exposure by being included in a multiple sale auction without the expense of a traditional marketing campaign. The real property is turned over to an auctioneer by its owner, or those representing the owner, to be sold on a commission basis and usually under specific conditions. Such property is often combined with property from other consignors and the marketing expenses are divided amongst each of the individual sellers resulting in a decreased advertising expense for each individual.

Private Treaty
In addition to the other methods, Real Estate Auction Associates understands that the perceived “urgency” that is created by the auction method in many times creates significant pre-auction offers that may be approved by the seller before the auction takes place. These offers are generally above current market value and will be analyzed by the auction firm and seller and executed by a licensed real estate professional where the property is located.

 When You Are Ready to Sell Your Property

I. Identify Your Goals

The first step in the process is to identify your goals. Why do you want to sell? Is there a time frame that you need to sell the property in? What do you want to accomplish after your property is sold?

These are questions we will ask in order to create a plan and process designed to meet your goals.

II. Property Evaluation

Your property will be evaluated in order to determine if it is suitable to be sold at auction. A series of evaluation questions will be answered in order to qualify the property for auction. The objective of the evaluation is to determine if there is a high probability that the property may sell on auction day.

III. Target Market

In the process of the evaluation, categories of possible buyers are determined. These are the prospects most likely to purchase the property. This list is determined by the property’s value, who can afford it and what the possible uses are.

To help maximize the exposure of your property we also pay commissions to licensed real estate brokers/agents who help market and find buyers for your property.

IV. Written Proposal

Prior to making any decision you will be presented a written proposal for review and any questions that you have will be addressed. You must be completely confident that selling by auction is the best method to sell your property before entering into an agreement.

Information pertaining to the auction of your property that will be included are; timelines of marketing, how the property will be advertised and the total cost of the event.

V. Reaching the Market

Advertising is one of the essential ingredients to the success of an auction. It is directed to the target market and the public in general.

We use survey results of past auction attendees to determine how to reach prospective buyers based upon the type of property being offered.

The advertising campaign normally includes a combination of direct mail, internet, signs, newspapers and magazines. Our surveys have proven that the majority of auction buyers are attracted by one of these sources.

VI. Property Information Package

In order to answer bidders’ questions about the property, considerable time and effort are spent compiling information about the property, including legal documents, disclosures,  inspections, prelims and any other special information.

The Property Information Package is used to build buyer confidence so they will pay fair market value for your property on auction day. It is also used to properly disclose any defects, as well as to enhance the positive attributes of the property. All sellers must fill out and sign a Transfer Disclosure Statement.

VII. The Auction Event

Most of our auctions are held on site or at a nearby location that is environmentally controlled in the event of inclement weather conditions. On occasion we may also choose to sell from one central location if there are multiple properties and/or land tracts selling on the same day.

Buyers are required to register in order to participate in the auction. They must sign the registration form and agree to the terms and conditions outlined in the Property Information Package. One of our Auctioneers will conduct the auction and bidding will be live. We are also selectively conducting online and live/online auctions with certain properties when we determine they will be the most effective.

Immediately following the bidding the winning bidder will sign the purchase agreement and give the deposit to the escrow officer.  The buyer then has thirty (30) days to close the transaction.

VIII. Follow Up and Closing

Escrow will manage and coordinate the closing of all parties involved with the transaction. A detailed summary report including advertising samples and a full accounting will be provided to the seller at the time of closing.