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Why Have An Auction
- Auctions are often the best way to sell real estate and personal property. Auctions produce true market value results in an immediate time frame and are less trouble and often less expensive than traditional sales techniques. Call the Harold for details. We are on the cutting edge of technology and our unique, custom-designed marketing plan for each and every undertaking ensures our sellers the best exposure possible in the marketplace. Our exclusive agressive marketing techniques attract an exceptionally large number of prospective purchasers. This ensures spirited competitive bidding and results in the maximum net proceeds for our satisfied sellers.
- Frequently Asked Questions
- When people contact us, they often have questions about the real estate auction process. Here is a list of those frequently asked questions, and their answers. Once you have read these questions, take a look at the properties in our Auction Calendar section. Then add yourself to our mailing list, and you are on your way to the next step in the process: attending a scheduled open house. WHAT is a real estate auction? Why should I buy or sell real estate through auction? What are the elements that determine a successful auction? What are the types of auctions? What is a buyer's premium? In an auction setting, what are the advantages to the buyer? How should I prepare to bid? When can I see property being auctioned? ---------------------------------------------------------------- 1. WHAT IS A REAL ESTATE AUCTION? A real estate auction is a popular way to buy or sell real estate. The auction process is accomplished through a concentrated, accelerated marketing campaign. 2. WHY SHOULD I CONSIDER BUYING OR SELLING REAL ESTATE AT AUCTION? The real estate auction is beneficial for all parties. For the seller, the real estate auction is a way to sell property at an accelerated pace. The inherent efficiency in the auction process enables the seller to eliminate long-term carrying costs including maintenance, real estate taxes, and interest. The resulting competitive bidding atmosphere gives the buyer an opportunity to purchase property at a price they establish. 3. WHAT ARE THE ELEMENTS THAT DETERMINE A SUCCESSFUL AUCTION? A professionally conducted auction with follow-up through the closing. Assertive advertising and marketing to attract prospective buyers. Realistic price expectations by the seller. The selection of an auction type that best represents the needs of the seller and the property being auctioned. Ensuring that buyers are knowledgeable. Location, condition and surrounding property -- factors that determine the desirability of a property. 4. WHAT ARE THE TYPES OF AUCTIONS? ABSOLUTE AUCTION The absolute sale is the purest, and in many cases, the most successful form of auction in terms of getting the highest price for property. With this type of sale, the property is sold regardless of price. This sends a strong message to the bidding public that the property will be sold for sure on auction day. Buyers can justify their time and effort knowing the property will be sold on auction day at their price. If the buyer feels he or she can buy the property at their price, then the buyer is more likely to bid. The buyer also realizes that a bid must be submitted because the property will be sold on a certain day and that there is " no tomorrow" to negotiate with the seller. Through aggressive bidding, true market will be obtained at auction. The advantages of this type of auction far outweigh the risks - and national surveys have proven time and again that the absolute auction will invariably attract MORE prospective purchasers, MORE COMPETITIVE and spitited bidding, and HIGHER SALE PRICE than any other auction method of marketing. AUCTION WITH RESERVE With this type of auction there is no published amount at which the seller agrees to sell the property. The high bid is subject to the seller's confirmation at the auction. The motivation for a buyer - and what makes an auction successful - is that prospective purhcasers must be able to obtain the property at his or her own price, not the seller's price. AUCTION SUBJECT TO CONFIRMATION This is a hybrid of the absolute auction and reserve auction. With the minimum bid offering, the seller determines a minimum price level above which he is committed to accept. This type of sale is effective only if the minimum bid is low enough to stimulate buyer interest. If the minimum bid is too high or near market value, potential buyers will often be discouraged from inquiring, inspecting, and therefore buying the property. Minimum bid levels can be difficult to determine in soft, slow markets where real value cannot be readily determined. 5. WHAT IS A BUYER'S PREMIUM? The buyer's premium, expressed as a percentage of the high bid, is an additional cost to the purchaser. Ranging from 1% to 10%, it is the fee the seller charges the bidder to bring the property to auction. It helps pay for some of the auction marketing expenses. In this event, (and be sure to inquire whether there is premium for EVERY auction you are considering attending), it will be published and announced that a buyer's premium is applicable to that particular auction. Remember - sincerley we appreciate all of our buyers attending our auctions on a regular basis, Unless specifically stated, you will find NO PREMIUMS at our auctions. 6. IN AN AUCTION SETTING, WHAT ARE THE ADVANTAGES TO THE BUYER? The seller is comitted to selling. The property is sold at a fair market price. The auction situation translates to negotiating power for buyers. Buyers may have a choice of several properties at once. Buyers can set their own purchase price. Long negotiation periods are eliminated. The time it takes to purchase property is reduced. Because purchasing and closing dates are known, buyers do not need to worry about contingencies. Property owners sell at fair market value. Financing may be available to buyers. 7. HOW SHOULD I PREPARE TO BID? Attend at least one open house to determine the condition of the property. Examine the property information provided by the auctioneer, including the sales contract. Determine what is included in the sale. Understand exactly what you are bidding on and the terms of sale associated with the auction process. Seek the advice of an attorney, home inspector, real estate broker or appraiser. 8. WHEN CAN I SEE PROPERTY BEING AUCTIONED? We conduct a property preview for each property auctioned. These are held at advertised times before the property is scheduled for auction. Visit our Auction Calendar to learn about our currently available properties and their preview dates and times. @ auctionzip.com
More FAQ's
- CAN AN AUCTION HELP SELL YOUR PROPERTY? In many situations, an auction can accelerate the sale of your property by utilizing a time definite sale date with an aggressive accelerated marketing campaign. WOULD AN AUCTION HELP SELL MY PROPERTY QUICKLY? A typical auction campaign runs 30 days or less and closes within another 30 days. Auctions are often referred to as accelerated marketing programs. One of the main benefits of an auction program is the reduced holding costs of a quick sale. CAN I AUCTION MY PROPERTY IF IT IS LISTED WITH A BROKER? Yes, talk to your broker about utilizing an auction to sell your property. A motivated broker can be very helpful with the auction campaign. Remember, your Broker doesn't earn a commission until he sells your property. If your listing is nearing its end, your Broker should be exploring methods to accelerate the sale and earn that commission. We will gladly co-broke any auction if that property is listed with a broker. When time is critical - you can't afford to wait on someone to come along to make you an offer. You need results NOW. We can deliver. HOW DO I CHOOSE AN AUCTION COMPANY? The value and location of your property will be the among the largest determining factors in choosing an auction method and company. Hicks Auction Co. consistently produces the largest number of auction attendees, the most spirited and competitive bidding, and the highest values in the marketplace. Our fees are not the cheapest - but we consistently write a check for the seller's net that exceeds their expectations. Remember this - as a seller you get what you pay for. Would you rather have 75% of $100 or 95% of $50? Think about it. WHAT ARE THE TERMS IN A TYPICAL AUCTION CONTRACT? The property is usually sold as-is, where-is, with all faults and NO contingencies in the contract. The closing date is typically within 30 days after the auction with 10% required as a deposit on auction day. Harold can assist each seller in the preparation of their terms and conditions of sale and contract documents. HOW DOES A BUYER VIEW AND/OR INSPECT THE PROPERTY? It is recommended that you hold "Open House" leading up to auction date. A prospective buyer should have ample opportunity to view and/or inspect the property prior to auction. We provide Bidder Packages of all pertinent data to all prospective bidders at all of our previews and auctions. SHOULD I FIX-UP MY PROPERTY PRIOR TO LISTING IT FOR AUCTION? Not necessarily. Oftentimes whatever improvements you think you should make invariably turn out not to be the buyer's liking and you recover none of your costs. When selling any real estate, improving the eye-appeal and condition of your property prior to the auction can be to your advantage, depending on costs. Remember, you can sell your property "As-Is". Let Harold guide you before you make mistakes! WHEN SHOULD I CONSIDER AN AUCTION CONSULTANT TO ASSIST ME? If your property is real estate or personal property, Harold can save you money and can assist you with the procedures necessary for conducting a successful auction, i.e., evaluating your property within the market, advising and consulting on fair market value, design and distribution of property brochures, web-site design and promotion, mail-outs to targeted buyers, print advertising in newspapers, trade magazines and public relations. The value of your property will determine the auction method and applicable promotions for the sale of your property. All this for a very reasonable cost. HOW CAN I DETERMINE THE VALUE OF MY PROPERTY? Harold will provide a comparitve market analyis and consult with you on reasonable expectations for fair market value. Or you may consider a fee appraiser that can render an opinion as to the realistic value of a property. Remember - appraisals are opinions. Auctions are the definition of market value - what a willing buyer will pay and a willing seller will accept. HOW DO I FINANCE THE PURCHASE OF AN AUCTION PROPERTY? Choose a reliable mortgage broker and have them pre-qualify you for a mortgage prior to auction. All real estate advertising is subject to the Federal Fair Housing Act
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