Choosing the Auction method actually allows a property owner a specific timeline for selling real estate.
In today's slowing real estate marketplace, having the option to spotlight your property and maximize visibility is a critical benefit to getting it sold. It is, by far, the best possible method of attracting as many possible buyers on a single day and using a competitive bidding process to achieve the highest possible sale price.
Buyers act on your schedule by complying with the terms, conditions and sale date of the Auction. They are committed to sale on a specific date, therefore, they conduct their due diligence in advance and are prepared to bid on the day of the sale. Closings typically never exceed 45 days beyond the sale/auction date, offering you a complete timeline from the minute you agree to move forward.
Whether your property has been on the market longer than you expected, you wish to avoid a long drawn out sales and negotiation process, or are just ready to make that move that will enable you to move forward on your schedule, Auctions are vastly becoming the sales method of choice.
While real estate auctions continue to grow, accounting for over $60 billion in annual sales, it is forecasted that auctions will represent approximately 1 in 5 sales over the next 5 years alone.
Auctions already account for close to 40% of sales in Australia and are widely an accepted form of selling real estate in the UK and much of western Europe.
How?
We firmly believe that real estate auctions are a win-win proposition for all parties.
Here are just a few reasons why as a seller, an Auction may just be the perfect solution for you.
•· Buyers come fully prepared to buy
•· Closings typically occur within 30-45 days following the Auction date
•· Your Auction should enjoy competitive bidding from pre qualified bidders
•· Properties are sold "AS IS"
•· There are no post sale negotiations and no contingencies to the sale, including financing. This virtually guarantees your property will close
•· By providing a scheduled time line to close on your property, you reduce closing costs such has taxes, maintenance, insurance, repairs and other fee's that eat away at your equity.
•· The Auction process includes a highly intensive marketing campaign that exposes the property to as many buyers as possible over 4-5 week period utilizing TV, print advertising, the internet and on the ground marketing to promote the Auction.
•· Auctions assure that the property will achieve a true market value on the day of sale.
•· And last but not least, No commissions are paid by the seller. Buyers pay what is known as a buyer's premium which is added to the high bid offer.
Seller Requirements:
As with any sale, there are basic requirements that need to be agreed upon before entering into an Auction agreement. We recognize that the requirements from other auction firms will vary. The requirements that I will share with you are those pertaining to Auction Generation.
First,
You must have reasonable equity in your home. Auction Generation will implement an intensive marketing campaign to attract as many qualified bidders as possible to obtain the highest selling price. However, homes that are considered fully mortgaged are not usually good Auction candidates
Second,
You will be responsible for the payment of an advance marketing fee.
This fee is determined based on a shared understanding of the type and length of advertising that would best suit your property.
Third
There are several Auction methods that a seller can choose from.
But the 2 types most often recognized are Reserve bid and Absolute.
What is an Absolute auction?
Simply they are defined as properties that are auctioned without a reserve or minimum. The property is sold to the highest bidder regardless of price.
Unlike an Absolute auction, in a Reserve auction a pre-determined price (or reserve) must be met in order to sell the property. Just as sellers can recognize considerable benefits from an auction there are many benefits for the buyer as well. They include!
- Motivated sellers
- Properties that have been previewed by bidders so buyers understand condition of property etc. before making there bid.
- Choosing the best price that works for the buyer and avoiding a complex negotiation process that often unravels a deal altogether.
HOW?
To participate as a seller the process is quite simple
The general process typically includes
. An initial telephone conversation with to learn about the property and motivation for selling as well as answering a few additional questions.
. Next we typically schedule an appointment at the property to be auctioned and discuss for auctioning the property
. We discuss a proposed marketing campaign plan which outlines exactly how we will attract bidders to the property.
. We provide a detailed proposal outlining exactly what happens before, during and after the Auction, right through to closing.
After the Auction listing agreement is signed and the advance marketing fee is received. Auction Generation will begin to implement the pre Auction marketing campaign.
WHY?
There are countless benefits for choosing the Auction method over a traditional sale.
1) A typical auction close within 90 days, which offers a huge advantage in this market.
2) Exclusivity, which simply means all of the focus is on your property. We spotlight your property for several weeks through many methods to ensure maximum visibility to attract as many bidders as possible on Auction day.
3) By selling through Auction you get a time table to sell and close therefore helping you to minimize carrying cost that erode value and equity. I hope this overview will provide you with the motivation to pick up the phone so that you can begin the process to.
Call Troy Fowler at 305 206 0349 for more information.
Troy is a Lic. Real Estate Broker & Lic. Real Estate Auctioneer #AU3595, #AB2717, AARE (less than 1% auctioneers haave the AARE designation)
;)
;)
