Seller Protections

You can establish a minimum amount that would be acceptable to you as the sales price. The seller has complete control and can execute a Reserve or Minimum Bid requirement for their property. This minimum amount is often dictated by seller’s obligations, liens, or other requirements and should be thoroughly discussed with the auction company during the initial consultations before finalizing your contract agreement. At the conclusion of bidding on a property in a Reserve auction, the seller will be given the option of accepting or rejecting the high bid and the seller’s right of refusal on any bid is maintained until the gavel falls and the property is declared “Sold”. The amount of the reserve set by the seller is a fiduciary issue for the auction company and, therefore, the reserve price is kept strictly confidential and can never be divulged to potential buyers. When a reserve exists, it is disclosed in the terms and conditions of the auction and if any property in the auction has a reserve, it cannot be termed as an absolute auction. 

You can expect bidders to be qualified. All bidders are required to bring a deposit (determined prior to auction) in the form of a cashier's check that is non-refundable. 

You sell the property "as is". The terms and conditions of an auction are issued to define the terms of the sale of the seller’s property and to fairly advise all buyers of the conditions of bidding participation in the sale. Properties are sold “as is, where is” with all faults and no warranties.  These terms and conditions are carefully stated and formulated to protect all parties to the transaction, yet are of paramount importance to protect the seller’s interests.  

You don't pay a commission. The winning bidder on your property is charged a buyer's premium, therefore you are NOT responsible for paying a commission (unlike when you list with a realtor). 

The courts approve transfer of ownership of property by the auction method. Auctions have been taking place for thousands of years and their legality is woven into the fabric of common law in our legal system. The court system recognize and validate that auction sales, conducted properly under terms and conditions provided to both parties of the transaction, are a proven method to transfer property ownership at a fair market price in an arm’s length transaction. Selling property through the auction method is often the best way to avoid legal disputes between owners that may arise through situations such as divorce or liquidation of estate assets among heirs.

Even if the property does not sell at auction, you still have increased exposure to sell after the auction. On the rare occasions that the property does not sell at the event, the real estate auction marketing method has exposed the property to a large segment of the buying public.  Oftentimes, buyers who showed interest prior, but were uncomfortable with the auction bidding process, will make an offer after the auction date.  On the other hand, many offers are made and accepted prior to the auction because the interested buyer fears losing the bid at auction.  Nonetheless, the auction process creates urgency and forces buyers to be proactive or miss the opportunity to own your property.  

Auctions have a long track record of success. While auctioneers have existed for over 2,000 years, consumers today are growing more and more familiar with everyday auctions due to the popularity of websites like eBay, and the fact the speed, transparency and the ability to set your price points at an auction meets the needs of today's buyers and sellers.  Last year alone, $58.6 billion in real estate was sold at auction according to the National Auctioneers Association (NAA). The group adds that residential real estate auctions are the fastest growing sector of the quarter-trillion dollar auction industry. Real estate auctions have already grown by 30% over the last 5 years in the U.S.

 

With the market and economy changing ever so rapidly, so to must the process of marketing real estate. Auctions are increasingly becoming the first choice for many owners in selling their property. The condensed timeline of the auction method is one of many seller benefits that can be very beneficial for owners needing a quick solution to their real estate selling needs.