Frequently Asked Questions
Does anyone ever choose the auction method as a first selling method?
Yes! Why? Because the auction method does not create a ceiling that a conventional listing does. It’s fast and transparent. The seller can set the conditions for the sale and eliminate endless negotiations.
Are real estate auctions only for distressed or foreclosure properties?
No, most of our clients choose the auction method first. These are smart sellers that choose to sell their real estate quickly with cost effective marketing that points only to their property. Traditional listings take more preparation with multiple unscheduled, showings and creative, contingency offers. Having an auction sets the date the property will sell and eliminates these hassles.
How long does the process take?
Ideally, the motivated seller will sign an auction listing agreement at least 4 weeks prior to the auction day and the closing takes place approximately 30 days after the auction date.
Can there be a minimum bid on an item or piece of property?
Yes, this is called a reserve bid. The seller has the choice of what that reserve will be. This amount will be discussed confidentially with your auction professional during early negotiations and is not disclosed to any potential buyer under any circumstances. The seller has the right to accept or decline the highest bid if it is below the reserve price.
Does the auction go fast?
Be on time! The auction itself moves fast. Auction attendees who have never attended an auction are usually surprised to learn that the sale they are attending is over in a few minutes. Many times, if the auction is for a single property, the entire process lasts less than 15 minutes.
Where does the auction take place?
For single properties the auction usually takes place on site, on a patio, in the living area or the front porch. For multi-property or land auctions a hotel meeting room is more typical.
How long does it take to receive funds after the auction?
Closing on the property if usually set for approximately 30 days. At closing the seller if paid and turns over possession to the buyer. The closing is handled by a professional title company. For any personal property you will be paid 48 hours after the auction.
How are auction terms different from a traditional transaction?
The terms and conditions will be spelled out in writing and announced verbally by the auctioneer. In the auction method, properties are sold “as is, where is” with all faults. The contract produced has no contingencies, including those for inspection and financing.