Auction Sellers Guide_Final

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Selling Your Real Estate?Use an Auction For the Best Results!


There’s been an explosion of auction popularity in recent years

• Online merchandise auction sites• Popular TV shows focused on auctions

Did you know that in many countries around the world, auctions are the preferred way to buy and sell real estate?

Our international friends in Ireland, Australia and some nations in Asia have long taken advantage of all the benefits of real estate auctions. You can, too.


When selling your real estate, would you like:

• A set date of sale?• An accelerated sales and marketing time frame?• Fast closing?• Only qualified bidders with no contingencies?• Competitive bidding that tends to drive up prices?• No drawn-out negotiations. The bidders compete

against each other

Then Choose a Real Estate Auction!


Auctions vs. Traditional Sale for Sellers

AUCTION METHOD

Overall accelerated time frame

Bidders are pre-qualified and ready to buy

Competitive bidding drives prices up

Property sold at Fair Market Value

Quicker end to carrying costs

Scheduled, limited number of showings

Set closing date, usually 30 days or sooner after the auction

TRADITIONAL METHOD

Sales process may take weeks or months

Buyers often require financing or prior-sale contingencies

Pricing steps typically go down

Value is only an approximation based on similar properties sold

Carrying costs drag on the entire length of sale process

Unpredictable and often inconvenient showings

Closing date is often TBD

Here’s a look at how an auction is better for the seller than a traditional real estate sale


Virtually all types of real estate can be auctioned

• Single family• Multi-family• Condos• Townhomes• Commercial

• Investment• Special-use• Land• Agricultural• And More!


Some Example Properties

Hawthorne, FloridaUSA

Omaha, NebraskaUSA

Tierrasanta, CaliforniaUSA

New Kent County, VirginiaUSA

Fishhaven, IdahoUSA

La Terranas, CaribbeanDR

Gig Harbor, WashingtonUSA

Bonita, CaliforniaUSA


Minimum Bid

Auction

Bidding begins at a minimum, acceptable price to the seller. Less popular among bidders than the Absolute Auction, a Minimum Bid Auction provides a starting point that a seller may feel more confident with, but the starting bid should not be unrealistically high as to discourage initial bidding. RealEstateAuctions.com works with sellers to establish an appropriate and productive minimum bid.

Auction Bidding Types

Highest bid wins. Absolute Auctions generate by far the most interest among buyers because of the opportunity to win the property with just another bid. This typically means more money for the seller due to the competitive nature of bidding

AbsoluteAuction

ReserveAuction

Only the seller, the auctioneer and the Auction Specialist with RealEstateAuctions.com knows a confidential minimum price at which the property can sell. Bidders typically regard an Auction With a Reserve as the least attractive because of the unknown minimum threshold their bidding needs to reach in order to purchase the property.

How is your real estate auctioned? There are three popular options:


Working with our designated Auction Specialists, your property is typically ready for auction approximately six weeks after contracts are signed. This is an average time period based on the market and the type of property we are auctioning. During this period, we will market your property and assemble all due-diligence documents into a Bidder Information Package for buyers. There are three primary ways to sell a property at auction: • Live, In-Person Event• Online-Only Event • Live / Online Hybrid Event Let’s see how each of these methods are defined.

When is your Real Estate Auctioned?


Online-Only Event

Perfect for a listing or listings in which a live, in-person event isn’t practical. Online bidding time is set for a narrow time frame or a broader time frame depending upon the marketing strategy preferred by the seller, in consultation with a RealEstateAuctions.com specialist. Bidding is done by qualified buyers online, in real time, though the RealEstateAuctions.com Online Bidding Platform.

Auction Methods

When most people think of “auction,” this is it. This type of event features a live auctioneer in an open-outcry setting. Qualified bidders raise their numbered paddles or bid cards when they wish to bid at the announced price, which is publically acknowledged by the auctioneer. A live, in-person event is typically held at a hotel ballroom or conference center for multi-property listings, or onsite at the subject property for a single listing.

Live, In-Person

Event

Live / Online Hybrid Event

A great combination that melds today’s technology with tradition to throw open the doors for bidding from virtually anywhere. Bidders in the room, across town or around the world can purchase real estate while sellers can have their properties exposed to buyers far beyond local markets.

These auction methods describe the length and the location of the auction.


Question & Answer

A: Absolutely not. Any real estate that can be sold can be auctioned. It simply is the fastest, most efficient and most transparent way to buy and sell.

Q: Aren’t auctions used only for foreclosures and distressed properties?


Question & Answer

A: Despite multiple offers, you may end up leaving money on the table unless you let potential buyers compete openly against one another in an auction format.

Q: I live in a definite sellers’ market in which multiple offers are made almost immediately when properties come up for sale. Why would I choose an auction?


Question & Answer

A: Yes. Please use our contact information at the conclusion of this presentation.

Q: Can you help me sell my real estate without an auction?


RealEstateAuctions.com can provide the following marketing for your real estate. Some marketing methods are available only in multi-property auction events in which pooled advertising dollars are available to make certain purchases. Our marketing includes, but is not limited to:

• The RealEstateAuctions.com website with a dedicated, customized listing page for each property

• Local Multiple Listing Service• Additional real estate-focused websites• Brochures and/or flyers• Direct mail• Social media• News releases• Company newsletter • Newspaper ads• TV and/or radio spots• Billboards• Guerilla marketing

How we market


Marketing ExamplesCommercials

Billboards

Direct mailFlyers


What will it cost to sell my real estate at an auction? Our listing fee and the marketing cost will vary, due to several important factors including: • Type of property• Method of auction• Single-property auction or multi-listing auction• Other We can best answer this question with a conversation. Please don’t hesitate to contact us for more information and let’s discuss your particular situation.

How Much?

$?


We’ll work with you every step of the way to determine the right solution for all the topics in this presentation, such as the type of auction (Absolute, Minimum Bid, Reserve), the method of auction (Online-Only, Live Onsite-Only, Hybrid), where to set the starting bid, and more. We’re knowledgeable about your local market and we have the experience to know what works for your particular real estate.

Making the Right Choices


• Provide you with an easy checklist for all necessary documents needed for our Bidder Information Package.

• Take photos and post a listing on RealEstateAuctions.com.

• Conduct the marketing and provide you with weekly updates.

• Qualify all potential bidders• Handle all aspects of the actual auction• Collect earnest money• Provide follow-up all the way to closing

Who handles the details?

We do! We will:

$


About USWe’re a national real estate company specializing in auctions. We’ll sell your real estate using the fastest and most efficient way of bringing buyers and sellers together. RealEstateAuctions.com was founded in 2010 by the CEO of a successful and well-known real estate brokerage of more than 20 years in Chicago. He began using auctions as a marketing method and soon decided it would become the sole purpose of the company because of the speed, ease and transparency auctions provide. RealEstateAuctions.com is currently licensed in most states, with expansion to all 50 underway. In 2015, the company expects to expand internationally.


Thank you!If you’re interested in learning more, phone or email the RealEstateAuctions.com representative who provided this presentation, or contact our national headquarters.

RealEstateAuctions.comCorporate Headquarters1765 Scott Blvd., Suite 209Santa Clara, CaliforniaUSA

Tel: (650) 584 3741 and (877) 938 7340

8:00 a.m. – 4:00 p.m. Monday – Friday

email/website [email protected]

Auction Sellers Guide_Final

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