Ask About Varying Commission Options
All auctions are detailed to specific individual needs
One of the most compelling reasons sellers utilize real estate auctions is their ability to control the terms of the sale, and sell their property on an "as-is, where-is" basis, or in other ways that make sense as situations dictate. Real Estate Auctions are innovative and effective methods of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property, (including nondistressed property) through an open cry, competitive bidding.
Absolute Auction (auction without reserve)
The property is sold to the highest bidder, regardless of price.
Since a sale is guaranteed, buyer excitement and participation are heightened.
Generates maximum response from the market place
Many sellers, including institutions and government agencies have begun to use this method more frequently.
Minimum Bid Auction
The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction.
Reduced risk for seller as the sales price must be above a minimum acceptable level.
Buyers know they will be able to buy at or above the minimum.
The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price and therefore it must be low enough to act as an inducement rather than a hindrance.
Reserve Auction
In this scenario, the high bid is reduced, in effect to an offer not a sale. A minimum bid is not published and the seller reserves the right to accept or reject the highest bid. Sellers predetermine the price at which the property will be sold and are not obligated to confirm a sale other than at a price that is entirely acceptable to them. The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder!