Contact Us About Us

California Premier Auctions, Inc.

The Real Estate Auction Company

For quick results sell your real estate at auction!

Home Current Auctions Past Auctions Sellers Realtors From the Press
"...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... BIG SUCCESS….My problem home was SOLD!!!"
-Mark F.

  » Auctions in a Buyer's Market

Our Auction Method Might be the Best Method of Selling your Home in a Buyer’s Market...

 

Thanks for your interest in our accelerated method for selling your home.

 

The biggest hurdles you might need to overcome if you want to sell quickly through our company is understanding that we will bring you at least the same but usually more in your pocket from the sale of your home but do it in a much shorter time frame than a traditional listing (30 days vs 4 months to 2 years).

 

A recent sale we completed in Pomona, CA generated over 30% of the appraised price… simply because we don’t put a cap on the price like a traditional listing and we were able to draw several potential very qualified buyers to competitively bid.

 

The example below is very important to understand in order for you to feel comfortable using our company to sell your property.  This example is very typical with many areas in California, but most sellers don’t either believe it could happen with their property or just don’t want to believe it.  Other areas not experiencing quite so drastic price deterioration will still be affected but possibly not to the same degree.  The key message is the truth of what happens in a buyer’s market.

 

Example

Property  address: 24110 Carmen Lane (Moreno Valley)

Listed with a realtor on 10/11/07 for $259,900 (what comparable sales said it was worth)

On 12/6/07 the price was reduced to $249,000

On 01/8/08 the price was again reduced to $236,500

On 2/21/08 the price was again reduced to $220,000

On 3/18/08 the price was again reduced to $209,000

On 4/30/08 the price was again reduced to $169,000

It finally sold in July 2008 for $107,625!  When you subtract sales costs (commission), closing costs and holding costs, the net to the seller was about $88,000.  So it went from $259,900 to $88,000, a $171,900 (66%) loss in “value”.

 

*Many properties throughout California have similar results using a traditional listing.

 

If the property were sold through our real estate auction company, we would have generated over $110,000 more to the seller, based on our track record and the fact we sell in 30 days (which dramatically reduces holding costs and price erosion costs).

 

Let’s assume the property was worth $259,900 when it was listed according to the comparable sales and we told you we could likely get $208,000 as a minimum net to you.  Quite honestly you would probably not sign up with us… thinking you could get more selling through a realtor… or selling yourself.

 

A common scenario is we receive a call later when sellers realize the old fashioned listing method isn’t getting the job done.  By the time we end up with the property, the seller is usually upset because their property has not sold and they now need to sell because holding costs (and price erosion costs) have taken a big chunk out of their equity.

 

Here’s how it works… the potential seller has a pre-conceived idea of the value of their property.  Several realtors are consulted and they base their opinion of value on recent sales that have taken place (comps).  The realtor that quotes the listing price closest to the potential seller’s perceived value usually gets the listing.

 

Once this decision has been made the property is listed, both the seller and the realtor have expectations that the property should be sold within 30 days.  When it doesn’t sell, the price is reduced to try and chase the declining market.  In the mean time, holding costs continue to accrue.  When a potential buyer is finally found, concessions in the form of buyer incentives (ie paying for closing costs, cosmetic upgrades etc.) and miscellaneous expenses incurred by the home & termite inspectors are required to be paid in order to try and secure the finicky buyer.  By the way, the only incentive we offer to the buyers is the chance to get a deal.

 

Once the property finally goes to closing using the traditional method, contingencies are required to be met and the buyers have 17 days to decide whether they want to go through with the sale.  This reduces the closing rate down to just over 50% (according to realtor.org).  Imagine taking 9 months to find a buyer and have the sale fall out of escrow!  Because our auction method has no contingencies, and requires a large non-refundable deposit from the buyer we are proud to say our closing rate is over 90%.

 

In contrast our auction method relies on the lure of the deal and a massive marketing campaign to create the exposure necessary, so each property can be sold in just 30 days at the highest net price possible.  We are so confident we will generate the highest net price that we can even guarantee it. 

 

Hope this has given you a clear perspective on both methods of selling real estate.  You now know there is another way.

 

If you want to move to the next step please read “Are you an Auction Candidate”.