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Do you own real estate that you need to sell fast? Expired listing, behind on payments, facing foreclosure, underwater, divorce, settling an estate, relocating, bad tenants, too many repairs, need cash fast? 

A proven marketing formula that weeds out tire kickers and attracts crowds of motivated pre-qualified buyer’s.

Online Real Estate Auction Benefits for Sellers:

• Quick sale of unwanted property

• Reduces long-term carrying costs, including taxes and maintenance

• Assurance that property will be sold at true market value

• Accelerates the sale in as little as 30 days or less

• Creates competition among buyers

• Auction price can exceed the price of a negotiated sale

• Takes the seller out of the negotiation process

• Buyers come prepared to buy

• Exposes the property to a larger number of pre-qualified prospects

• Requires potential buyers to pre-qualify for financing

• The seller knows exactly when the property will sell

• Provides an aggressive marketing program

• Increases interest and visibility for the property
• Eliminates numerous and unscheduled showings
• Property sells for all cash, as is, with no contingencies

BUYER PAYS FEE NOT SELLER   

Bidding Wars: One significant advantage is the potential for a bidding war, especially if
the property has unique features. This competitive environment can drive up the final
sale price.

Engagement of Qualified Buyers: Auctions attract qualified and motivated buyers who
are ready to act, increasing the likelihood of a successful sale.

Property Auctions have three main benefits: 

1. They have a high success rate (roughly 78% of auction properties achieve a sale).
2. They’re fast (an auction sale can be done in as little as 3-4 weeks).
3. Sales are legally binding (meaning less than 1% of auction sales fall through).

 

 

 

    Guide to Online Real Estate Auction

 

Online auctions are increasing in popularity as more and more investors choose them simply because they make everything easier. Real estate investors can bid from anywhere over a set time period, which could take days or weeks to finish. Like live auctions, you have to register before bidding online. The majority of real estate auction sites will also require you to show that you’re a serious buyer by requiring a refundable deposit.

 

Minimum Bid Auction

 

This is a house auction where the seller can set a minimum reserve price on the property. The seller will only accept the published minimum price or above. Meaning, if the highest bid doesn’t meet the reserve requirement, the property remains unsold. 

 

Reserve Auction

Reserve AuctionIn a reserve auction, the highest bid becomes an offer instead of the sale price. Once the auction has ended, the seller reserves the right to either accept or reject the winning offer in 72 hours

Do you own real estate that you need to sell fast? Expired listing, behind on payments, facing foreclosure, underwater, divorce, settling an estate, relocating, bad tenants, too many repairs, need cash fast?

• Auctions give sellers complete control over the entire sales process.
   

• Auctions provide sellers with price protection when selling with a reserve, so you never have to worry about selling for too little. 
   

• Auctions establish 100% true market value achieved through competitive bidding. 
   

• Auctions attract qualified cash buyers and weed out tire kickers. 
   

• When it comes to the final sale price, the sky’s the limit because auctions have no price cap. In some cases sellers receive more than they were originally asking. 
   

• Property is sold “As Is” with no inspection contingency, so you won’t have to worry about making any expensive repairs or having the sale fall apart due to a negative inspection.

Real Estate Auction Myths 

• Auctions are a last resort for desperate sellers or foreclosed homes.
•  I’ll be giving my house away if I sell at auction.
• I can’t auction my parents’ house because I have other siblings involved.
•  Buying at auction is a risk. I won’t be able to see the property.
•  I must be present to bid on and buy property at auction.
•  Buyer can not inspect the home
• Buyer can not use financing

Auction Terms Glossary

Absentee Bid

This is a way that you can bid even if you cannot attend the auction in person. Check with the auction of interest to see if this is available and how they make the bids for you. Many places allow written absentee bids, phone-in bids, and even online bidding. In written absentee bids, you tell them what items to bid on and how high you will go. In phone-in bidding, you are actually on the phone in person, but you have to let them know what you want to bid on. Online bidding utilizes a bidding platform which uses the Internet to transmit your bids. These practices vary from auction to auction so be sure to ask each auction company you deal with how they do it prior to bidding.

Appraisal

The act of or process of estimating value.

“As Is”

Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is” and “In its Present Condition.”

Auction Block

The podium or raised platform where the auctioneer stands while conducting the auction. “Placing (an item) on the auction block” means to sell something at auction.

Auction With Reserve

An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.

Auction Without Reserve (Absolute Auction)

An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also known as an auction without reserve.

Auctioneer

The person whom the seller engages to direct, conduct, or be responsible for a sale by auction. This person may or may not actually call or cry the auction.

Bid

A prospective buyer’s indication or offer of a price he or she will pay to purchase property at auction. Bids are usually in standardized increments established by the auctioneer.

Bid Assistants

A form executed by the high bidder confirming and acknowledging the bidder’s identity, the bid price and the description of the property. Also known as Memorandum.

Bid Caller

The person who actually “calls,” “cries or “auctions” the property at an auction, recognizing bidders and acknowledging the highest bidder. Commonly known as the auctioneer.

Bidder Number

The number issued to each person who registers at an auction.

Bidder Package

The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction. Sometimes called a bidder packet or due diligence package.

Bidder’s Choice

A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder’s selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold.

Bookkeeper or Clerk

The person who is responsible for the accounting and paperwork at an auction sale.

Buyer Premium

A percentage added on to your bid amount. Buyer premiums are used by many auction houses as a way of spreading the cost of the event with the people who benefit most from the opportunity to purchase; the buyer. It is an amount added to the high bid in addition to the high bid and payable by the buyer. This should be in the terms and advertising for the auction.

 

Catalog

If an auction company makes a catalog available to you, be sure to get one. It can help you to know the description of the items sold and also how it will be sold. There may be a quantity of the commodity in each lot being sold and they may be for all one bid or so much apiece. Auction staff will be happy to explain these differences to you and your catalog will help you follow along. This way you won’t miss an item that is important to you.

Commission

The fee charged to the seller by the auctioneer for providing services, usually a percentage of the gross selling price of the property established by contract (the listing agreement) prior to the auction.

Estate Sale

The sale of property left by a person at his or her death. An estate auction can involve the sale of personal and/or real property.

Hammer Price

Price established by the last bidder and acknowledged by the auctioneer before dropping the hammer or gavel.

On-site Auction

An auction conducted on the premises of the property being sold.

Opening Bid

The first bid offered by a bidder at an auction.

Payment Arrangements

Most auction companies ask that you pay when you are finished bidding. Some may ask for downpayments when you register, as in auction of real estate. In many equipment auctions bid-assistants will ask for deposits as your purchases are increasing. It’s good to ask about this prior to attending so you are prepared when you arrive. For absentee bidding you may need to give a credit car and expiration date for payment, if you are successful.

Preview

Be sure to take advantage of the preview times made available for you to look over the items being offered for sale. Many times, auction items are slightly used so you will want to know if there are any defects, such as loose or missing table legs, a vehicle that doesn’t start, or glassware that has chips or cracks. While these may be acceptable to you, it may affect the amount you want to bid, so look before you bid. You will feel much more confident if you do this.

Reserve

The minimum price that a seller is willing to accept for a property to be sold at auction. Also known as the reserve price.

Sales Tax Exemption

The need to provide a tax exemption certificate will vary from state to state in the U.S. If you are a dealer, call to ask what will be needed. If you have a dealer number for tax exemption purposes, carry it with you when you attend auctions.

Sealed Bid

A method of sale utilized where confidential bids are submitted to be opened at a predetermined place and time. Not a true auction in that it does not allow for reaction from the competitive market place.

Seller

Entity that has legal possession, (ownership) of any interests, benefits or rights inherent to the real or personal property.

Tax Sale

Public sale of property at auction by governmental authority, due to nonpayment of property taxes.

Terms and Conditions

“Terms and Conditions” are something you will likely see at every auction you attend. They will vary a according to the type of commodity being sold and the auction company. What we are showing you here are some things that are typical and that you should know. Please be sure to check the Web site or on-site glossary for each individual auction.

Types of Payments Accepted

This can range from cash only to cashier’s checks or personal checks and credit/debit cards. Many times you will need a positive ID such as a driver’s license or other government ID when you register for the first time.Financing is ok

Tie Bids

When two or more bidders bid exactly the same amount at the same time and must be resolved by the auctioneer.

Real Estate Auctions offer several advantages over traditional real estate sales. Here are some key benefits:

• Faster Transaction Completion:
  • Real estate auctions provide a quicker transaction completion process compared to traditional sales1. The auction format imposes a time limit on the bidding process, leading to a more expedited sale.
• Competitive Bidding Process:
  • House auctions can attract a large pool of prospective buyers, fostering a competitive bidding environment2. This competition can result in a higher selling price for the property.
• No Commission Fees:
  • Auctions are a great way to sell property without having to pay traditional real estate commission fees or advertising costs3. This can be financially beneficial for sellers.
• Urgency and Buyer Interest:
  • Auctions bring out a sense of urgency, prompting buyer interest and action4. The auction date serves as a call to action for potential buyers, promoting a faster sales process.
• Flexible Pricing and Upside Potential:
  • Auctions allow for flexible pricing and have limitless upside potential4. The competitive bidding can drive the price higher than initially anticipated, benefiting the seller.
• Differentiated Marketing:
  • When using the auction method, the property is marketed separately and exclusively5. This exclusivity can generate more focused attention from potential buyers.
• Set Date and Format:

The auction process differs from traditional real estate sales in terms of pricing, format, and a set date6. Having a predefined auction date adds structure to the selling process.

 

 

Auction Sales Reduce Time On The Market

• Once the promotion begins, the auction sale takes place in about three to four weeks 
• Auction promotions can generate a sale prior to auction day 
• Auction avoids drawn-out negotiations and unnecessary contingencies because terms and conditions are preset by the seller 

Auction Creates Buyer Competition

• The auction process causes multiple buyers to compete at the same time and place to purchase your property 
• Competition generates excitement and motivates buyers 
• Competitive bidding often draws prices higher than the seller’s expectations 

Good Auction Candidates

• High demand properties where competition between buyers would increase price 
• Property a seller desires to convert to cash quickly 
• Properties owned by seller who has purchased second property using a bridge loan or who has signed a contract for property “subject to the sale of existing property” 
• Estate and surplus properties 
• Inactive real estate listing needing a fresh marketing approach