· Auctions establish value: In strong markets new highs are established by capitalizing on demand … in weak markets the auction creates the market by creating consumer confidence.

· Auctions bring quick sales: A typical marketing period of 60-90 days or less brings the property to the attention of all potential buyers specifying the exact day of our sale.

· Auctions freeze conventional activity : People wait to see what opportunities our auction will bring and sales on competitive properties are virtually eliminated once our auction-marketing campaign commences.

· Auctions expand market reach : Efforts to sell similar real estate gets the attention of limited audience, whereas auction marketing exposes properties to a regional, national and international audience.

· Auctions get buyer attention : Properties included in multiple property auctions are exposed to a bigger clientele.

WHY AN AUCTION?

· Auction prices can exceed a negotiated sales price.
· Property is exposed to a large number of pre-qualified prospects.
· Auctions bring buyers to a point of decision... act now, or lose opportunity.
· Sellers know exactly when the property will sell.
· The auction process can be completed in less than sixty days from start to finish.
· Sellers set the terms/conditions of the sale.
· Sellers are able to move on to other investments and free up capital.

HOW DOES THE AUCTION PROCESS WORK?

· Individual properties are matched to an appropriate auction method as follows:

Absolute Auction
Property is sold to the highest and best bidder.

Minimum Bid Auction
Minimum bid is stated in brochure and auctioneer will accept bids at or above disclosed price.

Auction with Reserve
Seller predetermines the price at which the property will be sold and minimum bid may or may not be posted.

· Properties sell "as is" with no warranties, due diligence precedes auction day
· 10% earnest money deposit at auction with balance due within 30-45 days of closing

Buyer’s Premium
A buyer’s premium is an additional charge to the purchaser of the property. It is usually expressed in the form of a percentage of the high bid. The typical buyer’s premium in a real estate auction is ten percent.

WHEN WILL THE AUCTION BE?

· The time frame varies depending upon the type of property being auctioned. Generally the process takes 45 to 90 days from listing to closing. The auction itself may be as short as several minutes on a single property to all day on a multi-property auction.

· Previews are held  up to 30 days prior to Auction Day. Pre-qualified bidders are registered and provided with full disclosures on auction day.

What if... FAQ's

Do Real Estate Auctions Depress Home Values:
Not at all. Real estate auctions reveal the true market value of a property because auctions are conducted in an open forum where all bids are known and participants are given immediate feedback on the property’s value. At auction, values settle at the level the market can bear, neither elevated nor deflated.

Real estate auctions are often thought of as  ‘fire sales’. is this true?
Until the advent of the Internet, the Antiques Roadshow, and other similar phenomenon, auctions suffered "bad press" and laymen felt that real estate auctions were a result of repossessed properties. In reality, the savvy seller (usually a builder or financial institution) chooses the cost-effective, accelerated method of selling a development rather than laboring for months or years to sell the units of the development one by one. This accelerated sale allows the developer to eliminate virtually all long-term carrying costs.  It is truly a win-win situation.

High-end residential properties are one of the fastest growing component of  real estate auctions. These non-distressed,  non-repossessed properties are in high demand and create a seller's market nationally. Savvy owners are choosing auctions over conventional transactions to extract the true market values for their premium residences.

What if the sale doesn’t close?
A well conducted auction by its very nature minimizes such failures. If the rare failure does occur, a seller may be in a better position than someone facing a collapsed close with the private negotiated method. The private negotiated seller may have to return to square one in a search for a new buyer. The auction seller can turn to the next highest bidders, who demonstrated their willingness to pay nearly as much as the buyer who failed to close.