How to sell property online as a real estate auction
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Transcript of How to sell property online as a real estate auction
DAVID BROOKSI have developed into an auction-focused licensed real estate broker for LASTBIDrealestate.com.
My real estate career started 1987 over 20 years ago in Grand Rapids, Michigan. I founded Brooks Real Estate Group in 1996. My real estate operations went regional into the Greater Metropolitan Detroit area in 2010. I have now expanded into regional auctions throughout the State of Michigan.
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 buying real estate, would you like:
• The transparency of seeing other competing offers?• No negotiation period?• The ability to fully inspect your potential purchase?• A set date of sale? • The opportunity to get a good deal?• To eliminate the seller and broker from any decision
making?• To eliminate broker favoritism?• To eliminate discrimination?• To eliminate the (behind the scenes) process traditional
real estate adopts when making an offer?
Then Choose a Real Estate Auction!
Auctions vs. Traditional sale
AUCTION METHOD
Known date of sale
No buyer/seller negotiations
Open, fair bidding. No “best-guess” offers
Bidders determine Fair Market Value
Buyers receive comprehensive due-diligence information
Set closing date, usually 30 days or sooner after the auction date
TRADITIONAL METHOD
Sales process may take weeks or months
Negotiations are often the sticking point in the process
Offers can be rejected with no feedback
Pricing is often set unrealistically
Rarely is fully-detailed information available early in process
Closing date is often TBD
Here’s a look at how an auction is better for the buyer 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
Some Example Local Properties
Gross Point Shores, MIUSA
Detroit, MIUSA
Detroit, MIUSA
Detroit, MIUSA
Detroit, MIUSA
Detroit, MIUSA
Detroit, MIUSA
Detroit, MIUSA
There are three popular options: • Absolute Auction• Minimum Bid Auction• Auction With Undisclosed Reserve
Let’s take a look at an overview of each type of auction
What types of auctions will I encounter?
Minimum Bid
Bidding begins at a minimum, acceptable price to the seller. Less popular among bidders than the Absolute Auction, a Minimum Bid Auction nonetheless is attractive to buyers because the starting bid is typically set low enough to potentially provide a reasonable deal for the buyer.
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 one more bid.
AbsoluteAuction
Undisclosed Reserve
Only the seller, the auctioneer and the Auction Manager with LASTBIDrealestate.com knows a confidential minimum price at which the property can sell. Buyers may find this option less compelling because of the unknown minimum threshold their bidding needs to reach in order to purchase the property.
There are three primary ways you’ll participate in an auction: • Live, In-Person Event• Online-Only Event • Live / Online Hybrid Event
Let’s see how each of these methods are defined
What methods of auction will I be able to bid?
Online-Only Event
Perfect for a listing or listings in which a live, in-person event isn’t practical. With an Internet connection and a computer, bidding can be done from almost anywhere, on properties located almost anywhere, using the LASTBIDrealestate.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 in the room, across town or across the world.
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: Yes, select properties are sometimes available for sale without an auction. Use the contact information at the conclusion of this presentation.
Q: Does LASTBIDrealestate.com ever offer listings that can be purchased other than via an auction?
Question & Answer
A: We provide a comprehensive BIP (Bidder Information Package) downloadable via our website that includes many pertinent documents about the property. In addition, we encourage an inspection visit at an open house we will hold at the subject property, on an announced date and time.
Q: Where do I obtain information about the property in which I am interested?
Question & Answer
A: First, you must be a qualified buyer. That means able to purchase with cash, or with financing already in place. This is one of the main reasons auctions are fast and efficient. With qualification already in mind, let’s look at an onsite auction followed by an online auction.
Q: How exactly do I take part in an auction?
Participating in an Online Auction : Process
End of Auction
At the close of auction, the top bidder will be notified and provided with additional information about contact signing, supplying additional funds and completing the purchase.
Fax or Scan (e-mail)
Fax or scan-to-email proof of earnest money in certified funds (typically a cashier’s check) to the title company or escrow agent specified
$$Earnest Money Deposit
Follow the instructions regarding how much earnest money is required to participate in a given auction
Registration
Visit www.LASTBIDrealestate.com and register to bid online. Read and accept the Terms and Conditions.
Confirmation
An email will be sent confirming your bid and alerting you if a higher bid is received. Place another bid if you wish
Placing a Bid
When bidding is open, use the easy-to-navigate tools in the Online Bidding Platform to place your bid
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Participating in an Onsite Auction : Process
Registration
Register with administrative staff and provide earnest money specific to the property(s) on which you are interested in bidding. This is typically a cashier’s check made out to yourself, which will be held and returned to you if you do not place any “winning” bid
Arrival
Arrive at the designated location at least 30 minutes before auction time
Bidding
Raise the numbered card or paddle you have been issued to place a bid, following the bid caller’s lead
Terms and Conditions
Agree to Terms & Conditions
Winning Bid
If designated the high bidder by the bid caller (auctioneer) at the end of that property auction, proceed to the designated area to sign paperwork
Here are some of the many ways you’ll find auction events we’re holding and the listings that are offered:
• LASTBIDrealestate.com is an auction 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
Buyers are charged a Buyers Premium, which is a percentage added to the “hammer price” (when the auctioneer’s gavel falls or when the online auction closes . Example:
$150,000 hammer price + Buyers Premium (10%)*
= $165,000 final sale price.
*Buyers Premium may vary depending on auction
How Much?How much will it cost for me to sell my real estate with LASTBIDrealestate.com?
$?
About USWelcome to MIEDEMA Asset Management Group!
Miedema Auctioneering Inc, Miedema Appraisals Inc, Repocast.com, Orbitbid.com, LASTBIDrealestate.com, Rangerbid.com, and OAS.com, is now conjunctively organized under theumbrella of Miedema Asset Management Group. For over 31 years, Miedema has formed seven different companies to meet the diverse demands of asset management solutions to serve all our clientele which includes bidding activity in all 50 states and over 150 countries"
Services Provided by Miedema Asset Management Group:
Real Estate AuctionsLive AuctionsOnline AuctionsLiquidation AuctionsOnline Auction SoftwareAppraisals