Q & A – Getting Started
The Real Estate Auction 6 Step Marketing Process
Getting Started
We recommend that you follow the steps below to help guide you through the process of listing properties for the auction event.
Step 1:
Familiarize yourself with the terms and conditions contained in the auction listing contract that you will be required to sign.
Step 2:
Review the concept of an auction event and the marketing process. There is an entrance fee associated with including your property in the auction inventory. The details regarding this fee and other questions are addressed below.
Q: Why should I sell my property using the auction method?
A: A well advertised, professionally conducted real estate auction will benefit you by creating an environment where you can sell your property in the shortest possible time, for the greatest amount of money, on terms and conditions most favorable to you. An auction event is a widely advertised and promoted event that will create a great deal of excitement and enthusiasm in the marketplace.
Q: What are the costs associated with selling my property at this Auction Event?
A: There is an entrance fee for listing your property in a real estate auction. This fee will be used to cover the cost of advertising and promoting the auction. Unless the entire auction event is cancelled, this fee is not refundable.
Q: What is a Buyer’s Premium?
A: A buyer’s premium is an amount added to the high bid received at the auction for your property. The sum of the high bid amount and the buyer’s premium then becomes the purchase price of your property. The real estate commissions will be deducted from this buyer’s premium.
Q: Will I have to sell my property to the highest Bidder at Auction?
A: There are three choices:
– Without Reserve Auction/No Minimum
– Absolute Auction Without Reserve
– Auction/subject to a Minimum Bid With Reserve Auction (Seller reserves the right to accept or reject final bid up to a set price).
YES – If you have chosen an absolute auction, then you must sell to the highest bidder.
NO – If you have chosen an auction subject to a minimum bid, then the property in the auction will be conducted on a reserve basis. This means that you will establish the price, at or above which, you are willing to sell your property. Your reserve price will not be disclosed to prospective buyers without your prior consent.
Q: What will be the terms and conditions of the sale of my property?
A: Real Estate sold at auction is typically offered in its “as is” condition without the majority of the contingencies usually associated with the sale of real estate by the traditional method. Notable exclusions from an agreement of sale used at an auction would include items such as subdivision approvals, zoning changes, and financing contingencies. Your attorney will be provided with our suggested form of the agreement of sale that will be given to prospective bidders well in advance of the auction. It would be expected that your attorney will have adapted this agreement to suit your particular property and best protect your interests.
Q: What will be done to promote the sale of my property and the auction?
A: A comprehensive, multimedia advertising and promotional campaign will be launched approximately 6 weeks prior to the target date for this auction. The campaign will consist of newspaper advertising, press releases, internet posting, direct mail, personal contact with buyers, and property signs, and will be directed to end-users of the properties. Additionally, we will be contacting the area real estate brokerage community to encourage them to bring their buyers to bid on your property. A financial incentive program is in place to compensate licensed real estate brokers who represent successful buyers.
Q: What will take place on the day of the auction?
A: Your real estate agent will attend the auction with you and make sure you are available to get the answers to any questions you may have regarding the auction. When prospective bidders arrive they will be asked to sign in and to show the form of payment they plan to use for the required deposit. Once registered, they will be given a bidder’s package, which will include a sample agreement of sale, auction day announcements, and a bidder’s number. Once all the bidders have been registered, the auctioneer will make any last minute announcement and will review the bidding process. Each property will be offered individually, except in the case where a property may consist of multiple parcels, and then the auctioneer may offer the parcels individually, in combination with other parcels, and as an entirety. When the auctioneer has decided that the bidding has concluded for a property the winning bidder will be required to sign the agreement of sale and post the required deposit.
Q: When is settlement?
A: This is determined by the seller, but typically it is within 60 days of the effective date of the agreement of sale on your property
Step 3:
Set up a discovery appointment with your Berkshire Hathaway HomeServices Fox & Roach auction contact to qualify the property and seller, and review the auction terms and conditions, including fees and commission. Upon the Auction Partner’s review of the qualification information, we can determine if seller is a viable auction prospect. If the property/seller qualifies, we will deliver a detailed marketing proposal and auction listing agreement.
Step 4:
In order to have your property included in an auction, it will be necessary for us to put together a comprehensive and well organized Property Information Package (P.I.P.). Your Berkshire Hathaway HomeServices Fox & Roach auction contact person will provide you with a list of material you may be able to provide prior to your property being added to the auction event inventory.
Step 5:
Attend the auction event and be available to sign your agreement of sale.
Step 6:
Attend settlement and collect your check