Auctions: Frequently Asked Questions
Why should I sell my property using the auction method?
The auction method accelerates the sale of your property by generating additional consumer interest and activity. Non-contingent contracts and projected thirty day settlements are required of all buyers of auctioned properties. This means a quick transaction for you.
Who pays the Auctioneers fee?
Commission can be tailored to your needs. For example, the buyer/seller pays the entire commission, or the buyer and seller split the commission evenly. The Broker/Auctioneer’s fee is paid at the closing.
Will we still have to consider a contingent contract?
Everything that is sold at auction is sold “As Is”, “Non-Contingent”, with a thirty-day projected settlement date and the buyer paying all allowable closing costs associated with the sale. There are times on a post-auction offer that a contract contingent upon a home inspection or financing will be presented to you for consideration.
Where will the auction be held?
Most auctions are held on-site. By being on-site, bidders are constantly reminded of all the positives associated with that particular property. This, in turn, might encourage a higher bid.
Does “As Is” mean I don't need to disclose any unknown defects?
Though a property is sold “As Is” we must abide by the applicable state and federal laws. All appropriate documents regarding the property will be available. The Auctioneer will offer full disclosure to all interested parties in accordance with the law. The property will be open to the purchaser or his/her representative 1 to 1 1/2 hours prior to the scheduled auction time.
Do you inspect the property to determine the best method of auction?
No, it is not necessary to preview a property in order to propose an auction program. The sales associate will advise the auction team regarding market values in the area. After evaluating the sales associates input, the auction team will look at how many competing properties there are and look at sales history.
When will the auction be held?
The advantage with the auction method is the seller has the right to choose the date and time of their auction. One of the many reasons auctions are so effective is that your property is exposed to a wide variety of potential buyers on a set auction date.
If I put my property up for auction, do I have the right to refuse the bid?
In a “reserve” auction you have the right to refuse any bid which is less than the agreed minimum bid. The “absolute” method of auction usually generates the most money and more buyers, which creates very competitive bidding. However, when offered at “Absolute” auction, the property changes ownership.
Can I attend an auction before agreeing to sell my house through the auction method?
It is strongly encouraged that you attend a live auction and experience the process first hand. Remember that each and every auction is different, so you can not necessarily assume your auction will be exactly like the one you attended.
Should I be concerned about the perception of an auction?
Many people are afraid of the old, outdated perception of auctions. There are great differences in the marketing and the public image of voluntary or “by choice” auction versus a distress auction. By choice auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price for your property.
My sales associate has no previous experiences with auctions. Will this impact my results?
No. The auctioneer that hold auctions are auction specialists. They will assist your sales associate with the details of setting up the auction.