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Auction Frequently Asked Questions:

Can an auction help sell your property?

In many situations, an auction can accelerate the sale of your property by utilizing a time definite sale date with an aggressive accelerated marketing campaign.

Would an auction help sell my property?

A typical auction campaign runs 90 days or less and closes within 30 - 45 days.  Auctions are often referred to as accelerated marketing programs.  One of the main benefits of an auction program is the reduced holding costs of a quick sale.  A quick sale and closing also requires a quick move out by the seller. Be prepared for moving day by utilizing one of the internets free moving estimate services.

Can I auction my property if it is listed with a Broker?

Yes, talk to your Broker about utilizing an auction to sell your property.    A motivated Broker can be very helpful with the auction campaign.  Remember, your Broker doesn't earn a commission until he sells your property. If your listing is nearing its end, your Broker should be exploring methods to accelerate the sale and earn that commission.  Have him or her contact Estate Brokers of Florida for details on how to sell your property at auction.

What are the terms in a typical auction contract?

The property is usually sold as-is, where-is, with all faults and no contingencies in the contract.  The closing date is typically within 30 days after the auction with 10% required as a deposit on auction day.  Due to the intricacies involved in real estate laws, all Sellers are encouraged to consult a qualified real estate attorney to assist them in the preparation of their terms and conditions of sale and contract documents

How does a buyer view and/or inspect the property?

Estate Brokers of Florida will schedule with you, and host, one or more "Open Houses" in the weeks leading up to an auction date.  A prospective buyer should have ample opportunity to view and/or inspect the property prior to auction.

Should I fix up my property prior to listing it for auction?

When selling any real estate, improving the eye appeal and condition of your property prior to the auction can be to your advantage, depending on costs.  Remember, if you are selling your property "As-Is", you will still be providing sellers disclosures of the property condition.  Estate Brokers of Florida will give you advice on the best or most needed repairs that would benefit the sale of your property for the least cost to you.

How are "open outcry" auctions conducted?

Typically, open outcry auctions take place at a local hotel in a ballroom or meeting room. Seats are set up theatre style with a podium placed at the front of the room where the auctioneer stands. The auction process is simple. Bidders may choose to place their bids either directly to the Auctioneer, or through a Bidder's Assistant. The only thing a bidder needs to bring to the auction to purchase a property is a certified or cashier's check (refer to the auction brochure for specific amounts) as the initial earnest money down payment, as well as some form of photo identification. The certified or cashier's check remains in each bidder's possession until the high bidder is determined.

Advantages:

• By 2010, 30 percent of all real estate transactions will be auctions   according to the National Association of Realtors.

• Auctioning maximizes the net value to the seller.

• A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property, most certainly including those that are not distressed through open cry, competitive bidding.

Speed:

Once you agree to proceed with an absolute auction, your property will be sold in six to eight weeks, instead of the six to twelve months and longer typical of other selling methods. You not only save holding costs, but quickly get your money back into productive investment. You can also confidently plan and make commitments in the knowledge that your property will be sold for the highest price available on a certain date. Reserve auctions with realistic minimums deliver the same benefit.

Unlimited ceiling:

The essence of auctioning is competitive bidding. An auction brings buyers, including on-line bidders, together at one time and place to compete with each other by raising the bid. And because everyone knows that the property will be sold then and there, that competition takes place under a sense of urgency absent from any other method.

No risk of overpaying:

With traditional real estate sales, many buyers of luxury homes, ranches, condominiums and other properties worry that they will pay too much. However, in an auction the visible market value is established. So if you're the successful bidder, you'll know that your price is a fair market value.

No buyer or seller negotiations:

Other selling methods put the buyer in control of the process, starting with an asking price and negotiating down, under no time pressure to close. The only competition is between sellers.  The auction method is the exact opposite. It amounts to a negotiation between buyers, starting with an opening bid and negotiating up.

No contingencies:

All Estate Brokers of Florida auction properties are sold in "as is, where is" condition. Potential buyers are given ample time to inspect properties prior to the auction. Terms and conditions are preset and non-negotiable.

Pre-qualified buyers:

In order to bid, potential buyers must present a cashier's check, usually for $25,000, before the auction opens. The high bidder simply endorses that check over as part of the 10% down payment required when the auction concludes. Pre-prepared contracts are signed then and there, with a witness and Notary Public present. Closing occurs within 30 days.

Benefits to the seller:

• Buyers come prepared to buy.

• Quick disposal reduces long-term carrying costs, including taxes & maintenance.

• Assurance that property will be sold at true market value.

• Exposes the property to a large number of pre-qualified prospects.

• Accelerates the sale.

• Creates competition among buyers. The auction price can exceed the price of a negotiated sale.

• Requires potential buyers to pre-qualify for financing.

• The seller knows exactly when the property will sell.

• Eliminates numerous and unscheduled showings.

• Takes the seller out of the negotiation process.

• Ensures an aggressive marketing program that increases interest and visibility.

Benefits to the buyer:

• Smart investments are made as properties are usually purchased at fair market value through competitive bidding. 

• The buyer knows the seller is committed to sell. In multi-property auctions the buyer sees many offerings in the same place at the same time.

• Buyers determine the purchase price.

• Auctions eliminate long negotiation periods.

• Auctions reduce time to purchase property.

• Purchasing and closing dates are known.

• Buyers know they are competing fairly and on the same terms as all other buyers.

• Buyers receive comprehensive information on property via the due diligence packet.

Benefits to the realtor:

• Generates a list of ready, qualified buyers.

• Offers clients and customers new selling and purchasing options.

• Increases revenue and market share.

• Develops your own market niche.

• Assurance that property will be sold at true market value.

• Property is sold within a relatively short period of time.

• Exposes the property to many potential purchasers.

• Auctions bring people in to look at all your listings, not just the auction listing.

• Successful auctions result in referrals and return business.

• Agents can earn commissions as the referring Agent/Broker, cooperating Agent/Broker, or as the listing Agent/Broker.