realtors_guide

Realtor’s Guide to Auctions

 

 

How do I know if my listing is an auction candidate?

Typically, a good auction candidate is a property that is unique, highly desirable, or a property that hasn’t been properly exposed to the market. An auction will attract buyers through aggressive marketing and advertising. Your seller should also be motivated to sell.

What types of properties are good auction candidates?

Properties that have been listed for a long time with no direct interest, or properties that are highly desirable, both make great auction candidates. Think about a highly desirable listing that gets multiple offers within days of listing the property. Normally, an agent would ask that each offer come back with their “highest and best offer” (without knowing any information about competing offers). Imagine if you asked everyone that made an offer to come to the property and open their offers up to competitive bidding? Surely, buyers would come up even more on price, making highly sought after properties excellent auction candidates.

How should I approach my seller if I think an auction may be a good fit for them?

The best way to approach your seller about auction, especially if they are not auction-savvy, is to let them know you have an idea to aggressively market their property and you’d like to set up a call so that everyone can be informed to see if this method fits their goals.

Who will help the seller understand the auction process?

We are there every step of the way. A complete Auction Kit will be provided for you and your seller with the auction information. Knowing an auction is a fast-paced, complex process; we’ve got you covered.

What will happen to my listing/seller while they wait for the auction?

We are working with you to advertise and promote the auction. If a buyer is interested in writing an offer prior to auction, a purchase agreement can be presented and accepted, but the buyer and seller will still be required to abide by the Auction terms and conditions.

I have a listing in mind that would make a great auction candidate. What should I do first?

Call us and we’ll set up an appointment or conference call between you and your seller right away. Our team knows that not everyone is familiar with auctions. We go through the auction process from start to finish.

What happens if I have a buyer that wants to bid at an auction?

If you are a buyer’s agent, fill out the Broker/Realtor Participation Agreement found on our website. Email the completed form to our office and you’re all set.

Does my buyer need to be pre-approved in order to bid at the auction?

No. Auction purchase agreements are written as cash, but how your buyer comes up with the cash is their responsibility, however, they will have 30 days to close. That means if your buyer is planning on getting financing, we would advise them to have that lined up prior to bidding, but it’s not required. In the auction terms and conditions, a deposit amount is listed which is required to be presented in order to bid.

Have a property to refer?

4 + 4 = ?