Frequently Asked Questions
Selling Real Estate by Auction
Q.) How does selling real estate through your process differ from more conventional methods?
A.) Actually, our process is the “conventional” method. Property was exchanged at auctions for hundreds of years before there was ever such a thing as a real estate agent. Selling property at auction is still the fastest, cleanest way to bring buyers and sellers together and complete the sale. Another key difference; Real estate agents split their time between helping buyers find homes and trying to get sellers to list their homes with them. We only represent you, the seller. We bring you as many potential buyers as we can, but we work for you with the one-track goal of selling your property fast, and for maximum value.
Q.) Doesn’t the multiple listing service and traditional ads give me maximum exposure?
A.) Think about what a potential buyer has to go through to find your property; First, they may select a real estate agent, one of hundreds to choose from. Then, that agent has to sort through hundreds, possibly thousands of properties in the listing service to find yours. (Keep in mind that they are not specifically looking for yours…they will have to stumble across it.) Or the potential buyer searches the many real estate ads themselves. When we sell your property for you, it is elevated above the mass of the marketplace. We're working on selling your property on your specified date.
Q.) What about the selling price? Do I have to accept whatever is bid at the auction?
A.) First, one last word about the difference between an auction and the other method of selling property; When you list your property with a real estate agent, you may some day receive an official “offer” for your property. Do you think it will be more than you were hoping for, or less? That list price is a maximum - you won't do better, but you'll probably do worse. At an auction, buyers bid the price up until it ultimately reaches “what the market will bear.” You will know on the day of the auction the maximum amount a buyer will be willing to pay. The fact that you're selling at auction does not change the value of your home in the marketplace. Now, back to the question; “Do you have to accept that amount?”
There are two types of auctions that we conduct;
1.) Subject to Confirmation (Reserve Auction) - You have the final say in whether you want to accept the final bid or not. You can set and advertise a minimum bid prior to the auction or simply reserve the right to accept or reject the final bid for your property on auction day.
2.) Absolute Auction - The property is sold to the highest and best bidder without reserve or restriction as to the price. With this type of auction YOU cannot bid on the property yourself in order to artificially increase the price.You will decide in advance and specify in our agreement which type of auction you prefer. The choice is entirely yours.
Q.) Isn't an auction kind of a “last resort,” used to sell distressed properties?
A.) Absolutely not! In fact, if you look at the properties for sale by Auction across the country, you'll see some magnificent upscale properties. People choose the Auction method because it's fast and clean. There are many reasons why people are in a hurry to get their real estate sold; They may be settling an estate and want to distribute the proceeds to the heirs quickly. They may be relocating to a new city and need their equity to finance the move. They may have tried other methods and failed to find a buyer. Or, they may just want to avoid having dozens of people traipsing through their home and then presenting low-ball offers.
Q.) Won't I be perceived as being in financial trouble because I'm selling at auction?
A.) Yours will be a voluntary “by choice” auction, not the old “distress” auction you're thinking of. We do everything possible to make your auction a totally positive, enthusiastic event that encourages competitive bidding.
Q.) Just how soon could you sell my property?
A.) Once you have signed our standard agreement, your auction is usually held within 30 to 45 days to allow time for marketing your property.
Q.) How do you market my property?
A.) We will tailor and design a marketing campaign exclusively for your property. We want to reach the maximum possible number of potential buyers, both locally and nationally. We also send out a mass email notifying those who have signed up that we have added your property to our web site plus, we place advertising in your local news media. The ads will promote your property exclusively. Brochures featuring your property will be distributed throughout the area as well as auction signage on your property.
Q.) Where does the auction take place?
A.) So that your property can be presented in the best light, we like to do it right on the premises. Buyers are right there to be reminded how attractive the property they're bidding on is. If that's not practical for any reason (For example, deed restrictions in some neighborhoods preclude drawing a crowd on the property.), we can hold the auction in a nearby meeting facility.
Q.) Do I have to guarantee anything, or provide some kind of warranty?
A.) We sell all properties in “As-Is, Where-Is” condition. The prospective buyers are given full disclosure of pertinent data, and are invited to inspect the property before the sale. The buyer's contract specifies that they are accepting the property in its current condition “As-Is, Where-Is.” All you guarantee is a good and marketable title.
Q.) How long does it take to get my proceeds after the auction?
A.) The buyer places a substantial deposit down on the day of the auction. The balance typically is due within 30 - 45 days unless YOU the seller specifies otherwise.
Q.) How much to I have to do?
A.) You need to be present on Auction Day, Beckner Auctions and Booth Real Estate and Insurance Agency, Inc. handles everything else from start to finish. All you have to do is deposit your proceeds check after the closing.
Q.) What is all of this going to cost me?
A.) Our fees are similar to those charged by other real estate brokers with one exception; All expenses of promoting and advertising the auction are paid in advance by the seller of the property. This assures that your property will not be lumped in with all the other properties in an ad (or maybe not advertised at all!). Your property will truly be marketed exclusively and aggressively. And, you won't be lost in a crowd of other listings. Our fee is paid at closing from the sales proceeds.
Call Jim Beckner today and schedule a NO COST consultation about selling your property by the proven and exciting method of an Auction!
There will be no pressure we let YOU make the decision of how you want to sell YOUR property!
BOOTH REAL ESTATE & INSURANCE AGENCY, INC
JIM BECKNER AGENT/AUCTIONEER