|
questions Frequently asked by sellers
(...Continued)
When is the best time to auction real estate?
The best time is not any particular season. The answer is first, before it is ever priced to anyone. The first sign that goes up is an auction sign, instead of a realtor’s “For Sale” sign and there is no price. Properties should be offered 30 days before sellers want the money or to move. Every property owner wants to sell when their property looks its best. Therefore, auctioning your property when there are fewer competing properties may be a wise move. The best time to sell is when you are ready and want the money.
Do I have to sell the property when I put it up for auction?
No, you can have a public auction with a confidential reserve.
What do I say when people ask me what the reserve is?
Tell them it is confidential. When they press and say, “what if you only get $X.00”, a very low figure, respond by indicating, “they will be getting a bargain.” This assures that you will have a good attendance. Even best friends blab about confidential information. You need all buyers to build the best selling price. Low level bidders force other bidders higher.
Explain the differences between a traditional listing with a price and auction marketing.
Private Treaty Sales vs. Auction Marketing
Negotiated Sales
- Establish price
- Marketing begins
- Selling date uncertain
- Negotiations begin (LOW)
- Contract (usually with contingencies)
- Deposit (refundable when contingencies not met)
- Due diligence process begins in order to remove contingencies
- Closing (uncertain)
Auction Sales
- Establish date
- Establish terms
- Complete due diligence process
- Marketing begins
- Auction event
- Bidding process (social construction of value)
- Negotiations on price begin (HIGH)
- Contract (usually no conyingencies)
- Down payment, usually a significant amount
- Closing (usually a certainty)
What is an Absolute Auction?
It is one where the seller says they will sell the property, regardless of what it brings, and there is no reserve. Furthermore, they agree not to bid or have anyone bid, on their behalf. While this seems scary to many people, the real risk is not that a property will bring $0.00. Rather, the risk is that it will sell at a wholesale figure, where an investor will buy it to re-sell it, for a profit, in the future. Some state's auction regulations require that lien holders agree to an absolute auction.
Why do people choose the Absolute Auction with no minimum and no reserve?
They are comfortable with the risk and know that usually, an absolute auction produces higher attendance and, hence, more competition with a higher resulting selling price. You get to choose which type of auction you want to have.
Is better to sell the furniture, art and household goods at the same time as the real estate?
Yes. If both are offered, in all likelihood, each will bring more than you expect.
Do I have to sell my property with no minimum and no reserve?
No. You may choose to have a reserve and we may recommend that you do so; but you choose which method most closely matches your requirements.
What about disclosures and defects?
We encourage sellers to fill out all disclosure forms and be open and candid about property deficiencies. In some cases, sellers are not obligated to disclose facts concerning the property. However, we recommend that inspections be made and paid for, by the wining bidder, in addition to the purchase price.
As a rule, we try to point out all deficiencies. With the seller’s approval, we occasionally offer the “30-30 guarantee”, which simply means the bidder has the opportunity to inspect goods, for a distance of 30 feet, down the line of goods being auctioned and/or test any item, for 30 seconds, to be sure it fits his will or purpose of use. If not, we resell the item.
Why does an auction company have inspections, surveys and title insurance commitments ordered before an auction?
This is done to help bidders make executive decisions on bidding, with the maximum amount of information, so they are informed bidders.
Click here to take the Auction Candidate Quiz!
Please feel free to contact the RE/MAX 100 Auction Team for a relaxed, confidential, exploratory discussion of our unique auction services and your possible auction needs.
— Contact Us Today! —
|
AUCTION ALERT!
back
NEWS & INFO 
