1. We discuss in detail the different types of auctions available to our prospective clients.
|2. Once the auction type is selected, a marketing plan is outlined.|
|3. A date and time is selected for the auction to take place. Usually this is scheduled just 3-4 weeks after the contract is signed. One or two open houses (previews) are normally planned prior to the auction.|
|4. The contract is signed. It emphasizes that we work exclusively for the seller. All the details of the transaction are included.|
|5. A transfer disclosure statement, termite inspection and a preliminary title report is completed.|
|6. At the open houses the potential buyers are provided a bidder's package. They can bring qualified contractor's to do any inspections they feel are necessary. They can ask us any questions about the property and/or the bidding process. We are there to serve and make every potential buyer comfortable.|
|7. At the auction, the potential bidders must have a cashier's or certified check for usually a minimum of 5-10% of the estimated value of the property. Without this, they cannot participate in the auction. They receive a bidder's card with a number that is used when a bid is placed.|
|8. The auction takes place by experienced auctioneers who are trained to encourage the potential buyers to competitively bid.|
|9. The purchase contract is signed by the winning bidder and we open escrow.|
|10. Escrow closes in 30 days or less. If it doesn't close, the buyer's deposit is forfeited.|
The auction process will reduce your costs in three ways. Firstly, the holding cost of the property is greatly reduced. The auction will terminate expenditures such as interest, taxes and maintenance. Secondly, there is the cost of lost opportunities. For example, if you want to move to another home, but you must sell your current residence first, you can miss the opportunity due to the fact the seller of the home you want, won't wait for your property to sell. With an auction, you are virtually guaranteed your home will sell within 30 days so you can avoid making double payments and close on the "new" property. Thirdly, is the cost of not being able to move on with your life. If a listed property or property that is offered for sale by owner remains on the market without selling, it becomes "stale". Not only do you have to put up with numerous showings, but also the day to day headache of having an unsold property. Your life is put on hold until your property sells. With an auction, you can quickly move on with your life, knowing that your property will sell within 30 days.
|Because the price a property brings with our auction method is determined by competitive bidding, we feel you should be confident you will get the highest price possible for a cash closing in 30-45 days without any contingencies.
Our accelerated marketing campaign focuses the attention of true buyers on your property. By having an auction on a specific date, it forces the potential buyers to make a decision to purchase or lose the opportunity to own your property.
The traditional method, in contrast, has no time limit and if the property doesn’t sell, the solution is to lower the price with the hope of generating interest and maybe a sale in the future.