FAQ’s about Real Estate at Auction:
Will an Auction work for my property?
Most properties are saleable by auction, including residential, commercial,
recreational, and vacant land. However, certain properties in certain situations
have more chance of success than others. We offer free consultation to help you
determine if the auction is the right choice.
What is the best time for an Auction?
Auctions can be tried at any time during the sale process, but by far the
best time is at the beginning while the property is fresh to the market and
interest is at its peak. Our auction contract can work along with an active Real
Estate listing contract or stand alone.
What if the Auction is unsuccessful?
There are no guarantees with an auction, but even if the auction is
unsuccessful, your property will benefit from the increased exposure to the
market and that can only increase your chances of selling later through the
traditional listing process. We can offer this continued post-sale
exposure to the market and minimize your obligation to wasted expenses and
fees.
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What are the fees for an Auction?
Most auctions require the seller to pay all advertising costs and post a NO
SALE fee up front. We do not have any up front charges, and advertising costs
are included in the sales fee (which is usually covered by the buyer’s
premium). If the auction is unsuccessful, a small NO SALE fee to offset the
expenses of promoting and holding the auction may be charged. This fee can be
added to the Real Estate listing fee and is due only when the property is sold .
If the property does not sell during the listing contract, your obligation
expires with the listing.
What are the pros and cons of an Auction?
A sale at auction has a definite closing date, is not contingent on financing
or inspections, eliminates frustrating buyer/seller negotiations, and can
sometimes bring results above fair market value. Even if the sale is
unsuccessful, it can serve as a measure of the properties desirability and fair
market value. Not all properties are good candidates for auction, however.
That's why its important to consult a company that can offer their
expertise in all kinds of Real Estate transactions before you decide whickh
method will work best for you.
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AUCTION TERMINOLOGY
Auction with Reserve
:
Sellers set the
minimum price they are willing to accept for the property to be sold at
auction. Sale is made only when reserve price is reached or surpassed (
subject to seller’s confirmation).
Absolute Auction:
An auction where the
property is sold to the highest bidder regardless of bid price (without
reserve).
Sealed Bid Auction:
A sale in which confidential bids are submitted to be opened at a
predetermined date & time.
Buyer Premium:
An additional fee to
the buyer added to the final bid price due the seller to offset auction
costs.
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Broker Participation
Offering a fee to licensed Real Estate brokers and agents as an
incentive for their participation as buyer representatives.
Terms & Conditions:
The printed rules of
the auction that are read and distributed to potential bidders.
Sale Price:
Bid price plus buyer’s
premium due seller at closing.
Bid Price:
Highest price obtained during bidding
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