w
Sellers
Selling at Auctions
If you are a SELLER who wants to move your property at an accelerated pace and to earn fair market value in return, then the auction method of marketing may be for you. The right price for your property is the one set by a competitive market. And there is no faster, more direct way to discover your property’s value than through an accelerated, customized marketing campaign designed to attract the greatest number of qualified buyers to your real estate auction. Gathered in one place at one time, bidders compete against each other for your property, creating an ideal selling environment for achieving fair market value.
Savvy sellers are rapidly realizing and reaping the many benefits an auction produces by utilizing the auction method of marketing as a first choice for properties of all sizes and values.
Benefits to Seller
- Buyers come prepared to buy your property
- Quick disposal reduces long-term carrying costs, including interest, taxes and maintenance
- Auction creates true market value – reducing time, cost, and risk while increasing visibility, liquidity, and net return
- Exposes the property to a large number of pre-qualified prospects
- Property is sold in an accelerated time frame, typically within 8 to 12 weeks
- Creates competition among buyers – auction price can exceed the price of a negotiated sale
- Requires potential buyers to pre-qualify for financing and to come prepared to execute a non-contingent contract to purchase
- Auction brings interested buyers to a sense of urgency – they must act now or lose an opportunity to purchase
- Seller sets the date and time of auction, terms and conditions of auction, and sets the closing date
- Ensures an aggressive marketing campaign that increases interest and visibility, creates potential interest and awareness of your property, and targets specific individuals and entities most likely to be interested in purchasing your type of property
- The buyer pays the commission, over and above the bid price. Your only expenses are the advertising budget, preparation of deeds, updated abstract and title opinion.
- As a result of the accelerated sale of your property, you are able to use the monies to reinvest in other real estate or investments.
The Auction Process
The steps leading up to your auction take the following course…
- The initial meeting is set up when you call a representative of C. C. Crump Auction Company.
- An on-site inspection and evaluation of your property will be made by our representative.
- Our auctioneer will present you with a written proposal detailing your auction date, location, time, your advertising costs, Buyer’s Premium paid by buyers, all auction-related expenses and other matters.
- After the terms in the proposal have been agreed upon, a written exclusive right to sell contract is signed by seller and auction company.
- Once you have decided to sell your property, we will begin a completely individualized advertising campaign to position the property effectively in the market place. By using signs, print media, electronic media, the internet and a direct mail campaign, we can perform a media blitz that will reach all the prospective buyers.
- Site preparation by a licensed surveyor and improved curb appeal will begin well in advance of your auction. One of the most important characteristics of land is the ability to subdivide the property. The way the property is divided into individual parcels will have a dramatic impact on marketability.
- On auction day our auctioneers, professional ringmen, and auction clerks will manage the auction and record all bid transactions and tract purchases. Each bidder is registered, assigned a bid number and given an information package that aids buyers in making informed purchasing decisions. This includes a title opinion, updated abstract, purchase contract, terms and conditions and other disclosures.
- Immediately follow the auction and after the seller has confirmed the sale, we execute the sales purchase contract between seller and buyer, collect the buyers non-refundable down payment and schedule a closing date within 30 days.
Direct Comparison - Auction Event vs Traditional Sale
AUCTION EVENT |
TRADITIONAL SALE |
Begins by establishing date, location and terms of sale |
Begins by establishing an “asking price” and seller must negotiate all aspects of sale |
The advertising is extensive and very visible, exclusively featuring your property |
Heavy reliance on MLS, minimal advertising and reliance on other brokers to find buyers |
Marketing period is accelerated to 60 days or less |
Property may remain on market for months or years |
The property is showcased throughout the entire marketplace and freezes other sales |
The property is one of many being advertised and shown |
All buyers are forced to act on your time schedule, date, time and place |
Lacks the ability to motivate buyers, forcing you to wait for their schedule |
Auction creates a sense of urgency |
Price reduction commonly used to create buyer interest and activity |
No limit on upside potential. Realizes the property’s fair market value. |
Upside potential limited by asking price |
Eliminates guesswork in determining the asking price of the property |
Seller risks overpricing and thus, property sitting on the market, or under pricing and selling too cheap |
Presets all conditions of the sale, thus eliminating all negotiations |
The seller is forced to negotiate all aspects of the sale |
Buyers compete to own and all offers are presented at the auction |
Multiple offers at one time are rare |
Property sold in 60 days and closes in 30 days thus eliminating expensive carrying costs |
Mortgage payments, taxes, insurance, etc, continue until property is sold. Length of time to sell is unknown |
Secures a contingent free contract |
Normally contingent upon buyer’s financing, inspections, appraisals, etc |
Non-refundable down payment money, all cash closing |
Refundable earnest money, buyer can easily back out |
The most desirable division of property has a dramatic impact on marketability |
Property is seldom divided, therefore limiting the number of buyers |
Seller pays cost of advertising expense and preparation of deeds. Buyers pay commission, survey, and all closing costs. |
Seller pays commission and closing costs are negotiable. |