» Choosing the Right Real Estate Auction Company
Utilizing the auction method of marketing is now an alternative way to market and sell your properties in California. As real estate auctions become more popular there will be more companies that claim they are legitimate real estate auction firms. Here are a few questions that can be asked to determine whether or not the auction company is reputable...
Does your company exclusively sell real estate at auction or do you also use the list and sell method?
Companies that claim to sell real estate at auction but are also list and sell agencies have a conflict of interest. The list and sell method is the exact opposite of the auction method and means that agencies that practice both do not have complete confidence that the auction method of marketing is the right choice for your real estate transaction. Your best choice would be a company that only specializes in the auction method of marketing real estate because they fully understand how auctions will benefit you and have complete confidence in their ability to sell your property at fair market value.
Does your company exclusively sell real estate at auction or do you also conduct auctions selling other types of product?
There are many auctioneers that claim that they sell real estate at auction, when in actuality they also sell other products at auction and do real estate on the side. Your best choice would be to choose a company that exclusively sells real estate at auction because their focus is real property, not personal property.
Is your company bonded as auctioneers in the State of California?
Auction companies that conduct business in the State of California are required by law to be bonded by the state. If the company you are interviewing is not bonded by the State of California do not trust your real estate to be sold legally by that company.
Is your company licensed by the Department of Real Estate (DRE) in California?
Any auction company selling real estate in California must have a DRE licensed Broker overseeing every auction. If the company you are interviewing is not licensed by the California Department of Real Estate do not allow them to sell your property.
Is your company a member of the National Auctioneers Association (NAA) and the California State Auctioneers Association (CSAA)?
It is not mandatory that real estate auctioneers be members of the NAA or CSAA, but all auctioneers that are members of both associations are required to follow a code of ethics while practicing as a legitimate auction company. Do not do business with auctioneers that aren't members of both associations because they may not be looking out for your best interests.
How many successful auctions has your company completed and how many years has your company been in the California real estate auction business?
Choosing a real estate auction company that has not conducted more than 100 successful auctions and been in the real estate auction business for at least 5 years in California may not be in your best interests. In order for real estate auctions to have a positive outcome, they must be handled by auctioneers that have the proper knowledge and experience, which can only be gained by conducting a multitude of successful real estate auctions in California over a legitimate time period.
What type of marketing does your company utilize?
If the auction company does not have a clearly defined marketing plan (i.e. signage, print advertising, internet, Realtor advertising, direct mail, etc.) for your property, then the best choice is to move on to an auction company that can give you a clear description of how they will market your property.
Does your company conduct real estate auctions exclusively in California?
Real estate auction companies that conduct auctions in many different states will often times not understand the Calfornia market and can't give you a "hands on" approach, which may not lead to the successful sale of your property. The best choice is to utilize a local California real estate auction company to handle all facets of your sale.
Dear Mike, Rick, Tenille,
This was my first experience at a "live auction" for property. My clients were also my personal friends so I was put at ease after we met. I felt my clients were in good hands and I didn't have the fear that they would NOT be provided with good service or protection. You all were very prompt to address any concerns or questions we had and returned all calls in a timely manner. As a Real Estate Agent I didn't feel you were out to "take my client" in the least. That is one concern I have heard from other agents.
I am currently involved in an ONLINE auction and it does NOT even compare to the experience as I had with Elite Auctions. The agent handling the listing needs lessons from you guys. Most of the properties on this site are on POST AUCTION which means they are NOT getting the job done. I would highly recommend Elite Auctions to do the job.
Anyway, I just wanted to thank you guys again and I look forward to doing more business with you. I have also shared my experience with several other agents. Again one of the things that make the transaction work was your staff making us comfortable. More people in this business need to learn how to be nice, personal service is always the best way.
Sincerely,
Joyce Gebhart (Century 21 Showcase)
Dear Mike Grigg and the Auction team:
I just wanted to thank you for the wonderful job you guys did! I could not be happier with the auction process and result for my home at 1107 El Paso Dr. Los Angeles Ca.
As you know, my home was in need of a lot of repairs, and the auction process enabled me to sell the home with minimal repairs, while still reaping the highest possible price.
I thought I would share my thoughts with you on the whole experience so you can help others like me. In my situation, my home needed a lot of cosmetic, termite/dry-rot, structural, and other repairs. I did not want to spend the money to fix these problems; however, I did want to sell the property. I could have listed the house in the "normal" way, but I felt that if I had done that there would have been a good chance (because of the numerous repairs needed) that the home would have sat on the market for many months, and may not have even sold. Timing was VERY important to me, as the real estate market seemed to be going down in value. (Asking prices had dropped about 10% in my area over a two-month period). What I needed was URGENCY---A reason for buyers to buy my house in as-is condition-NOW. And that is why I went with the auction format.
I met with Mike and we discussed his marketing plan. It was VERY intensive, involving numerous print and newspaper spots, direct mail, internet, property signs, as well as signs that Mike personally placed throughout the neighborhood. All of the ads generated a lot of a calls and interest, which Mike focused on to the one open house where people came to view the home.
We disclosed all of the repairs needed to the home in the bidders packet, and this package was given out to anyone who requested it, as well as to all those who registered to bid. We had over 120 people attend the open house! Seeing all those people really generated urgency as buyers felt this was a great opportunity.
One week after the open house was our auction day. On auction day we had 15 bidders register (they have to bring a cashiers check to bid) and about 60-70 people in total showed up. The type of auction I chose was an absolute auction. This means the home will sell regardless of the end price. This type of auction will generate the most interest; however there are other types of auctions Mike can do including minimum bid auctions, or seller confirmation auctions where the seller can refuse the end price. The absolute auction fit my needs best.
Mike started the auction at $100,000, but quickly got it up to $300,000. Here is where Mike did a GREAT job! He really "worked" the crowd by getting the people bidding against each other. I truly do not think this would have happened had I merely listed the home in the "normal" way. Through his efforts Mike was able to work the bid all the way up to $379,000! And per auction rules 10% was then added on to make $416,900. This is another GREAT aspect of the auction process as the bidders can lose track of the final price. (Keep in mind Mike and the Elite Auctions Team represents YOUR interest as the seller!). Once the bidding is over, the winner must give his cashiers check to Mike. If the buyer backs out for ANY reason he will lose the money. This is yet another reason why I went with the auction method! In most "normal" sales if the buyer does not get a loan or other reason he can back out and he will not lose anything!! With an auction format the buyer WILL lose the deposit if he does not complete the sale for any reason!
Now with the auction over Mike took the deposit and we opened escrow. 31 days later we closed escrow without any problems and....BIG SUCCESS....My problem home was SOLD!!! By the way, had I listed in the "normal" way I feel that I would have asked $385,000 to $400,000 (Based on other homes listed for sale in the area). In fact, I even had offered to sell the house a year ago to a neighbor who was interested for only $350,000 (with no commissions), but she refused the offer! By selling via an auction I was able to get $67,000 more than I had offered to sell the house to a neighbor! Even after the auction costs and commission I still got $30,000 MORE than if I had sold to the neighbor, AND the real estate market had gone down in value since I had made the original offer to the neighbor one year ago. I cannot thank Mike and his team enough for all their efforts! The entire process was very professional and I would defiantly recommend Mike and his team to anyone. Please feel free to show this letter to anyone interested in the auction process, or feel free to have anyone contact me if they would like a personal referral, or if they have questions about my experience with your company.
Once again, Thank you very much,
Mark F.
Chief Auctioneer for Elite Auctions, Mike Grigg, AARE conducts a real estate auction in Riverside, CA. The seller bought this home from the MLS for $75,000 and did nothing to the house. The Auction generated 38 registered bidders and a final price of $147,400 in 30 days, almost double what the MLS brought!! Auctions are the fastest growing method of selling real estate and will almost always produce better results for the seller. FOR MORE INFORMATION ABOUT SELLING YOUR PROPERTIES USING ELITE AUCTIONS SYSTEM PLEASE VISIT WWW.SELLWITHAUCTION.COM.
My partner and I would like to thank you guys for selling our fixer-upper. We were VERY happy with the price the auction generated. We bought the property for $75K and were hoping to sell it for at least $90K, maybe $100K if we were lucky. To our surprise and delight, the final sales price was $134K! That's almost twice what we paid for it -- we got a retail price without having to do any repairs!
I have to admit, I was a little hesitant about writing a $5,500 check for marketing expenses, but it was money well spent. I was impressed when your marketing program produced 44 groups at our Open House, and I was amazed when 38 registered bidders actually showed up at the auction! Believe it or not, I had problems finding parking on the day of the auction because there were so many cars parked up and down the street! I don't know how you guys marketed our property, but it worked.
I'd also like to commend your staff for being courteous, professional, and keeping me informed every step of the way. I was especially impressed on the day of the auction. From the signs placed at major intersections (helping bidders find our auction), to the accommodations for the heat (the sun shade, umbrellas, and drinks), to the conduct of the auction itself, you guys did a first class job.
Even after the auction, your creative idea reduced our anticipated 45-day escrow to a 10-day escrow. We expect to receive our profit check next week, rather than next month. You're a valuable member of our team and we appreciate your efforts.
We look forward to selling many more houses using Elite Auctions. We highly recommend Elite Auctions to anyone who wants to get the highest price for their property.
Thanks again,
Bob Uyeda
Elite Auctions is "California's Auctioneer of Real Property". Real estate auctions are the most effective way to buy & sell property in a buyer's market.
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