|
REAL ESTATE AUCTIONS MAKE DOLLARS
$ SENSE
AUCTION BASICS AND BENEFITS
What is an auction?
An auction is a process by which a third party (the
Auctioneer) through a bid calling process causes an item to be sold
typically at a public gathering. The auction process is one of the
oldest methods of selling; it goes back to the beginning of time.
Think of an auction as a tool in your sales tool box, it is a proven
method of selling.
What are the types of auctions?
Absolute Auction- This type of
auction means that the property will be sold to the highest bidder
regardless of the bid amount; this is an auction without reserve.
Minimum Bid Auction – This auction has a specified
beginning bid on each property and the property is sold only to the
highest bidder above the minimum.
Reserve Auction- This is the most popular type of real
estate auction, the property is sold “subject to a reserve amount or
subject to seller approval”. In this process the property is not
really sold until the seller approves of the highest bidders price.
Why consider selling Real Estate by auction?
Real Estate auctions cause:
Sense of Urgency- the buyers that have been sitting
back come forward
Competition- the buyers are in the same space bidding
to win
Commitment- the buyers have to pre-qualify, they are
committed to close
Completion- the seller knows when the property will
sell
What are other benefits to the auction method?
For the Seller
Pricing-Contrary to popular belief
the auction method many times exceeds the seller’s minimum.
Reduced Sales Expense- The buyer pays all closing costs
in the form of Buyer’s Premium, title policy.
Showings- Numerous and unscheduled showings are
eliminated by concentrating the times under the auction schedule
Negotiation-The seller is taken out of the negotiation
process. Once the seller sets a minimum or reserve price the auctioneer
does the rest.
Investor Money- Smart investments are made buying
properties at Fair Market Value and a good investor knows auctions prove
up that FMV.
Timing- Everyone knows when the property will sell and
then close.
World Wide Audience- In this day and age internet sales
and phone sales open the auction to a world wide market.
Where is as is- All properties sold at auction are sold
“where is as is”, the buyer must preview the property and review any
disclosures or inspections provided or make his own inspections but
there is no negotiation after the sale.
Intense Marketing- The marketing for auction properties
is intense and targeted in the appropriate time before the sale, so no
long drawn out week after week listing ads.
For the Buyer
Pricing- The buyer sets the price so
he feels in control of the process; competition however will ultimately
drive the final bid.
Showings- No appointment needed the buyer may come
during appointed showing times with anonymity.
Negotiation- The seller is taken out of the negotiation
process. There is no long negotiation process.
Investor Money- Smart investors go to real estate
auctions looking for properties at FMV.
Timing- Everyone knows when the property will sell and
then close.
World Wide Audience- The buyer can bid from anywhere in
the world, he can be in his “Pajamas in the Bahamas”.
How it all works
Seller commits to the auction method, contracts
signed, etc.
Marketing materials are built, internet presence begins ASAP
Known buyers are attracted by personal contact and invitation
Preview days set up, advertised, inspections and disclosures on site
Sale day draws near and buyers start to register
Sale day rolls around, the crowd gathers, the excitement intensifies
The auctioneer works his chant and the property is SOLD!
Contact the Auctioneer
Craig D. Conlee
Conlee Auctions
325-347-7757
conleeandconlee@yahoo.com
www.conleeauctions.com
|
