- About Us
- Are You an Auction Candidate?
- Auction Method
- Auction Success Stories
- Auction Videos
- Choosing the Right Auction Company
- FAQs
- Important Links
- Properties Ideal for Auctions
- Testimonials
» FAQs
- FAQ: Why shouldn't I just list my property with a Realtor or sell it myself?
- FAQ: What would it cost to hold an auction for my property through your company?
- FAQ: How would you market my property?
- FAQ: Can you guarantee a minimum price at an auction?
- FAQ: Can you guarantee my house will be sold in 30 days?
- FAQ: What are the types of auctions available?
- FAQ: What property seller is the best candidate for an auction?
- FAQ: Aren't auctions for owners who are in financial distress?
- FAQ: How is an auction conducted?
- FAQ: How can I set up an auction for my property or get more information?
FAQ: Why shouldn't I just list my property with a Realtor or sell it myself?
Answer: In some cases this might be the best method to sell your property. The auction method of selling real estate however offers several benefits. Your property can be sold within 30 days on the day you want. Listed properties many times sit on the market for months without an offer.
* It eliminates negotiation with the potential buyers.
* There are only one or two open houses (previews), so you're not bothered with looky loos at all hours.
* At an auction the properties are sold in "as is" condition with no contingencies. You aren't required to fix or upgrade anything prior to selling your property if you choose. No costly fumigations or wood replacement is necessary.
* The title insurance is paid by the buyer. In traditional real estate transactions, title insurance is paid by the sellers.
* The price you receive for your property is based on a competitive bidding process that isn't locked into a fixed listed price; there you have unrestricted upside potential.
* The seller does not pay a commission. Instead a buyer's premium is included in the final price. Typically, with a listed property, a 6-7% commission is required to be paid by the seller.
Top of Page
FAQ: What would it cost to hold an auction for my property through your company?
Answer: The good news is the buyers pay for our services in the form of a buyer's premium. Your only upfront expenses would be the marketing costs and the cost for a termite inspection. The marketing costs are negotiable but certain guidelines should be followed in order to have the best possible results from the auction. Much of these costs could be paid by credit card, so you could have your property sold before much, if any, interest accrues. Then the proceeds from the sale of your property will pay these costs in full. The savings from expenses you'd be responsible for with a traditional sale (i.e. commission, fix up costs, termite work, title insurance, holding costs) could easily exceed the upfront marketing costs. In some cases our company will even pay some or all of the marketing costs.
Top of Page
FAQ: How would you market my property?
Answer: Depending on what you decide to spend, we use post cards, brochures, signs, newspapers, several websites, and Realtor contacts. For more expensive properties or unique real estate, "virtual tour" videos can be sent to the bidders upon request.
Top of Page
FAQ: Can you guarantee a minimum price at an auction?
Answer: No, there are no price guarantees at an auction. Our marketing process is designed to produce ultra qualified buyers who will pay true market price on the day of the auction. We do allow the sellers to confirm the highest bid before selling their property if they desire.
Top of Page
FAQ: Can you guarantee my house will be sold in 30 days?
Answer: If we do an absolute auction where there is no reserve (confirmation) by the seller, we can guarantee a sale.
Top of Page
FAQ: What are the types of auctions available?
Answer: In general there are three types of auctions we offer... Absolute, Minimum bid, and Reserve. To get the most interest for your property we recommend either an absolute or reserve auction. An absolute auction, in some cases, will draw more interest, as the potential buyers know the property will be sold on the day of the auction. A reserve auction can also attract a crowd of willing and able buyers but our clients have full control of the final price. If the price is not acceptable, the price is simply rejected. A minimum bid auction is the least attractive to buyers because there is a published price at which the auction must start. Minimum bid auctions are usually used for tax sales or foreclosures.
Top of Page
FAQ: What property seller is the best candidate for an auction?
Answer: The best candidates for an auction are folks who understand the time value of money and also want their real estate sold quickly. These people want to move on with their lives, without the burden of an unsold property. They also realize that competition can drive the price higher than a listed property.
Top of Page
FAQ: Aren't auctions for owners who are in financial distress?
Answer: No, this statement is not true. Properties sold at foreclosure auctions, held at the county courthouse, involve owners who are in financial distress. Our auctions, on the other hand, are heavily marketed to the general public, and Realtors. We create urgency and inspire competitive bidding. Most of our clients are in great financial shape and realize the benefits of our services.
Top of Page
FAQ: How is an auction conducted?
Answer: There are usually just one or two open houses (previews) in the 3-4 week marketing period. This creates urgency. The prospective bidders receive a "bidders package" that explains all the details of the auction. Included in the package are copies of the preliminary title report, termite inspection and signed Transfer Disclosure Statement by the seller. The bidders must bring a cashier's or certified check for usually a minimum of 5% of the estimated value of the property. This upfront money helps qualify the buyers. Escrow typically closes in 10 to 30 days after the auction. The actual auction event is usually conducted at the property using experienced auctioneers who are trained to get the buyers relaxed and emotionally charged up, so the best results and highest price for the seller is obtained. Licensed Brokers and legally binding contracts are used that conforms with California law for real estate transactions.
Top of Page
FAQ: How can I set up an auction for my property or get more information?
Answer: Call (661) 325-6500 or fill out the form on our contact page. All information will be completely confidential.
Top of Page