Dramatic Growth in the sale of Real Estate at Auction
In recent years the United States economy has experienced dramatic growth in the sale of real estate at auction. In fact, the auction of real estate in the United States in the 90's will result in tens of billions of dollars of property changing hands.
Auctions Create Urgency and Competition
Auctions are exciting events, forcing qualified buyers to a single moment of decision. Buyers must seize the opportunity on auction day. Competitive bidding increases interest and prices. Most importantly, real estate sales are confirmed within minutes - sales that could have otherwise taken months or even years to generate and finalize.
Auction Advantages
Why auction? Property owners have begun to recognize the advantages of the auction alternative - among them, speed, increase in price through competitive bidding, reduction in the cost of carrying a property, immediate attention focused on a specific property, and creation of a sense of urgency to buy.
Four Decades of Service
For over 40 years, Harry Davis & Company has successfully brought together buyers and sellers of industrial, commercial and residential properties throughout the United States. Through our many years of experience, we have established relationships with the real estate community, bankers, attorneys, developers, builders and investors. Our experienced staff of brokers, agents, sales service people and auctioneers has been trained to bring about one goal: A successful sale
You can reach one of our consultants by calling our real estate group at (412) 521-1170 or Fax (412) 521-7930.
How a Harry Davis Real Estate Auction Works
Impact, Advertising & Marketing
Once a property is listed for auction, we immediately develop a strategic marketing plan. All promotional efforts are aimed at a single auction date, focusing strong buyer attention on Auction Day. We launch a print advertising, direct mail, and telemarketing campaign. Our in-house advertising department tends to the details of copy writing, photography, telemarketing and public relations -all with an emphasis on the auction process. Active prospects are identified, open houses are scheduled and inspection appointments are made.
Multi-List Participation
As part of our auction advertising campaign, each residential property in the Pittsburgh area is listed in the West Penn Multi-List, thus exposing it immediately to 6,000 area real estate agents. Additionally, we have an established list of real estate investors who will be informed that your property is scheduled for auction. Residential, commercial and investment buyers as well as real estate brokers are given high priority in the auction campaign.
Success on Auction Day
On auction day, buyers come prepared to BUY. Registration forms, information brochures, contracts, title work and everything necessary to conduct the sale is in place. Buyers know the amount of deposit required at the time of the sale, and financing commitments have often already been arranged. Once the bidding begins, it move quickly to a final, successful sale.
Properties That Sell Well at Auction
Most properties, but certainly not all, are saleable at auction. Sound residential, commercial, and investment properties as well as desirable vacant land will do well at auction. Properties that have been on the market for a long period of time may be revitalized through the auction process. Unique and specific use properties, however, may not lend themselves readily to auction. Each property must be evaluated individually to determine whether it is best suited for auction or for sale through conventional means. Our staff will analyze your property closely to ensure success for both the seller and buyer before we list the property.
Marketing Your Property Before or After the Auction
Many times a buyer who wants a property will make an acceptable offer before the auction date to avoid the competitive atmosphere of an auction. It's also possible to market your property even if it doesn't sell at auction. The auction advertising campaign has already exposed your property to a large segment of the buying public. In some instances, after an auction sale an agreement will be entered into with one of the active bidders at the sale.
Success for Your Auction: Call Harry Davis Real Estate!
The first step in learning whether an auction is the best way to market your property is to call Harry Davis Real Estate at 412-521-1170. As auctioneers and real estate brokers, we sell property both at auction and via conventional real estate listings. Our company will give you an objective analysis of whether your property is best suited to auction or conventional sale. Our experienced staff will evaluate the property, make suggestions for improving its sale value and provide you a written proposal showing how you can best achieve your objective: A SUCCESSFUL SALE!
Buying Real Estate at Auction
Common Real Estate Auction Questions
Buying Real Estate at Auction is becoming more popular every year. Here are some frequently asked questions about how to buy Real Estate at Auction:
Is This An Oral, Outcry Auction?
Yes. Harry Davis Real Estate will hold a public, oral auction on the premises. Once an opening bid is received or called out, the auction process begins and the bidding will advance above the opening bid in increments established by the auctioneer.
How Can I Participate In This Real Estate Auction?
To be eligible to bid, a potential buyer must register with our office either prior to the auction or the day of the auction. All bidders must post a pre-determined amount of money in the form of a certified or cashier's check. Contact our office for the amount of the deposit as each auction sale is different. Personal checks may be accepted in certain situations, but you must contact our office prior to the auction. If you are not the successful bidder, you get your check back immediately. If you are the high bidder, that check becomes your hand money; you sign an agreement of sale incorporating the auction terms.
Does The Owner Have To Take The Highest Bid That Day?
It depends. Almost all of our real estate auction sales have "reserve" numbers that are determined by the seller. The reserve number is not disclosed before the auction. If the high bid the day of the sale exceed the seller's reserve number, then it is automatically "confirmed" and the buyer must proceed to the closing. If the high bid does not meet the seller's reserve number, the seller has 72 hours to decide whether to accept the lower number.
What Is Meant By "Suggested Opening Bid?"
The suggested opening bid is the number that the auctioneer considers a fair starting point for the oral auction. The suggested opening bid is not the seller's "reserve" number.
If I Am The High Bidder, Is My Bid Contingent Upon Me Obtaining a Mortgage?
Not typically. Real estate auction sale are not usually contingent upon the buyer obtaining financing. Most of our auction buyers are pre-qualified by a mortgage broker or bank and know that they qualify for such a purchase. Should the buyer not be able to obtain financing and not close on the property, they forfeit the deposit money. Contact our office with any financing questions.
If I Am The High Bidder, Is My Bid Contingent Upon Any Inspections?
Generally no. Most real estate auctions are "as is, where is". Potential buyers often have inspections done before the auction. We will make the property available at any time for any type of inspection. If you want to bid on a home but only if it is with an inspection contingency, please contact our office. The seller can make the decision to allow certain inspection contingencies and this has been done in the past.
Can I Purchase An Auction Property Prior To The Auction?
Absolutely. If a buyer make an offer prior to the auction sale and it is a number acceptable to the seller, the seller can decide to sign an agreement of sale and the auction will be canceled. This is a common occurrence and not out of the ordinary. Certain contingencies can be attached to the agreement of sale by the buyer in this situation. Contact our office for details.
What Is The "Buyer's Premium?"
The Buyer's Premium is an amount added to the high bid and incorporated into the total selling price. The amount of the Buyer's Premium is announced prior to each auction sale. There is no Buyer's Premium if the property is purchased prior to the auction sale.
For Additional Information call (412) 521-1170 or E-mail DavisReal@aol.com
Reprinted from Harry Davis Auction (412) 521-1170 - Fax (412) 521-7930 - www.harrydavis.com
5865 Forbes Avenue, Pittsburgh, PA 15217
Avar Realty has submitted the white paper to demonstrate that auctions are popular and vary little throught the North America, Avar Realty is the premier flat fee discount brokerage service for North Alabama. Auction is was one of the tools that we use in serving our clients.
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