Determine the Best Approach to Selling Your Real Estate at Auction
An auction is a dynamic solution to selling real estate. There are several types of auctions, so determining the best fit and strategy is crucial to a successful sale and closing.
Generally, there are four types of auctions we conduct:
Types of Auctions
This is the truest form of an auction where the property will sell to the highest bidder, regardless of price. This type attracts the most competition and drives the price the highest due to its sense of urgency. All types of real estate are sold by absolute auctions, from investment properties to luxury real estate and high-end commercial buildings.
Minimum Bid Auction
A Minimum bid auction publicly advertises a minimum bid price where the bidding will start. For our auctions, the minimum bid is a shock value that’s usually 50%-60% of market value. An aggressive minimum bid can be just as effective as an absolute auction if promoted properly.
An auction sold with reserve doesn’t publicly advertise a price, but reserves the right to withdraw the property from the auction if it doesn’t meet the price the seller is willing to accept. In our experience, reserve auctions are effective for the type of property, typically unique properties.
Sealed Bid Auction
When a property is sold by a sealed bid auction, potential buyers will submit their highest bid to purchase directly on a form to the Auctioneer. The Auctioneer and seller will open all bids submitted and determine whether to accept the highest sealed bid or open a private auction with the top sealed-bids received. This type of auction is used for properties where the buying pool is small and specialized.
Types of Auction Methods
- Live Onsite – Buyers gather in-person at the property that’s being sold. The Auctioneer explains the terms and conditions of the auction and live competitive bidding takes place until the Auctioneer says Sold.
- Online Only – Buyers registered to bid on our website or Mobile App to be remotely online. Bidding opens when the property is uploaded to our website and the auction “ends” at a specific ending time. We utilize a dynamic close where sniper bidding is strictly prohibited by extending the bidding by 3 minutes until no more bids are placed.
- Live Onsite with online bidding – This is the most common method for real estate auctions. We typically hold our auctions live onsite at the property being sold and invite any buyers who can’t attend the auction to bid virtually online at the same time. This approach gives the option for buyers to participate however they feel most confident.
Given the types of auctions and strategic auction methods, how do we determine the best approach for your real estate?
We ask A LOT of questions about what your desired outcome will look like. Some of the question we might ask are:
Questions That Help Determine the Best Approach
What is your timeline for selling?
This question is important to realize the timetable in which you’ll be ready to sell and how the timing may or may not affect the price we achieve at auction.
Why are you selling?
A seller’s motivation to sell their real estate is typically rooted in the reason they’re selling. If you’ve already purchased another home, you may be very motivated to sell and knowing that information upfront will help us determine the best approach to selling your home quickly so you can move into your new home. On the other hand, if you’re not sure of the value of your real estate but know you have a unique property, you may not be so considered with move the process quickly, but more interested in making sure the right buyer discovers the real estate you have to sell.
Which is more important when selling; time to close or price achieved?
Some may find this question off because both seem equally important, but to some time is more important to move on rather than price. And for others, it’s about price. We want to be sure to advise you on an auction path that meets YOUR goals. We know every situation is different and craft strategies to fit each individual seller.
Learning more about your goals to sell your real estate will help us guide us down a path that will produce the best results for your goals.