Myers Jackson

Real Estate Auctions FAQs

When does the Real Estate Auctions sales methods of marketing work best? When a seller’s objective is to sell real estate in a specified time frame, the Real Estate Auctions method is an attractive solution. An auction will achieve market value in an accelerated manner under terms and conditions favorable to the seller.

Does a real estate auction indicate that a property or seller is in a distressed situation? The association between auctions and distressed situations is a fallacy. The majority of real estate auctions are not a result of distraught sellers. Auctions are a decision that smart seller who understand the importance of the time value of money and an aggressive marketing campaign. Educated sellers choose a cost effective approach instead of using traditional listing methods that produce contracts with contingencies and indefinite marketing periods. Traditional listings take the control away from the seller and bargain down on price rather than up, as in the auction method. The real estate auctions method schedules a sale date, sets terms and conditions and produces a non-contingent contract.

Has the Real Estate Auctions method been the first choice in selling method? The Real Estate Auctions has been the preferred method of sale for many property owners who take the time to gain an understanding of how auctions work. Auctions offer sellers a distinct advantage over traditional listings. Auctions encourage qualified buyers to bid the price up does not create the price ceiling that a conventional listing does. Auction sellers determine the terms and conditions of the sale get results.

Are reserves or a minimum bids used for real estate auctions? Sellers have the right to choose to have a reserve or minimum bid. This topic is addressed during preliminary meeting between the seller and auctioneer. This amount remains confidential and is undisclosed. When the high bid is achieved at the auction, a seller reserves the right to accept or reject the high bid.

How is high bidder’s choice used in real estate auctions? When people attend real estate auctions, they will most likely encounter real estate auctions that are held at high bidder's choice. Not everyone is quite sure what that means, and it is actually a great opportunity for any motivated buyer who is ready to seize the opportunity for what most of the time is a great bargain. At a real estate auction, high bidder's choice is the option given to the highest successful bidder to choose a certain property or group of properties in whichever grouping that they prefer. For examples there could be a real estate auction held for 21 different lots and the high bidder can pick any lot or even group together any lots 1-21. It is the special advantage that the high bidder assumes and has over the other bidders. After the high bidder has made his/her selections, the second round of bidding begins and the rest of the bidders are left to pick from any of the lots still available. Real estate auctions held at high bidder's choice give the most interested buyer the opportunity to select from the very best by having the ability to have the first choice.

How does auction “bidding” work? The process in which a real estate auction property is sold is through bidding, the bid is the amount a buyer is willing to offer for the property, through the duration of the real estate auction process, the bid's will continuously go up until the highest bid can no longer be surpassed. The auctioneer coordinates the increasing amounts and keeps order of all the bids. Bidding can be done just as easily online as it is done in a live real estate auction, the instructions are placed with each auction and explain the process.

If the high bid is less than my predetermined minimum value can I accept it? Yes, the seller always has the right to sell the property at the highest bid price.

How long will the whole real estate auction process take? Ideally, the contract must be signed at least 3-4 weeks prior to the real estate auction day, the closing takes place approximately 30 days after the auction date, multi parcel real estate auctions can take 30-45 days after the auction depending on circumstances, i.e. survey’s,etc.

Where will the real estate auction take place? On single properties the real estate auction typically takes place on site, either in a tent, on the front porch, or in the living room. For multi-property or vacant land auctions a ballroom setting is typically more appropriate for the auction setting.

How long after the auction occurs will I get paid? Approximately 30 days after the real estate auction, a closing date will be set. At that time the property owner will be paid and turnover possession to the buyer. The closing will be insured by a professional title company. If it is a personal property auction, you will get paid on auction day.

Can multiple properties be sold at one real estate auction event? A real estate auction gives a seller the opportunity to showcase various properties all in one shot. A seller may have more than one asset he/she is looking to liquidate and our real estate auction process offers the option to have all the different properties covered in one auction event. With a marketing schedule that encompasses all facets of awareness of the properties to the public, the seller can rest assure that even with multiple properties, the real estate auction method can quickly sell and attract the right motivated buyers for each of the properties. Every asset is unique and is treated with great detail to the promotion of the event.

What are the terms of real estate auctions? The terms and conditions are devised to protect the seller and the process of the auction method. Properties are sold “as is, where is” with all faults. The purchase agreement is produced with non contingencies, including those for inspections and financing.

What factors determine the success at real estate auctions? Many factors contribute to a successful real estate auction, the desirability of the property being sold i.e. location, condition and surrounding properties. Secondly, and most important, realistic expectations on the part of the seller. Every property has a value, when a property is properly advertised and promoted and two or more approved bidders are in attendance the high bid achieve is true market value. If the seller realizes this and is truly motivated to sell at the achieved price under stated terms and conditions a successful auction occurs.