TYPES OF REAL ESTATE AUCTIONS
There are different methodologies of Auctions and bidding formats which corespond to the seller client's goals, current market conditions and property characteristics. Each individual property is analyzed to determine the prospective buyer profile, where will we find the buyer and what structure will create comfort and motivated the profiled buyers to bid.
OPEN OUTCRY AUCTIONS – Most effective when buyers prefer to bid in person and will purchase the property exactly under the terms and conditions of the offering. This method is selected when price is the sole consideration of the buyers.
SEALED BID AUCTIONS – In this format, bidders submit a bid on the approved real estate sales contract which is submitted with certified earnest money funds. The seller selects the winning bid. This type of auction is favored if there is a likelihood that the seller is interested in considering optional terms to purchase or there is more than one property being offered and assemblage can be determined by each bidder to meet their individual needs.
ON-LINE AUCTIONS – On line auctions are simply another approach to an open outcry auction. An online bidding platform can be much like Ebay or it can be in conjunction with an open outcry auction.
HYBRID AUCTIONS – Hybrid Auctions include elements of the various programs listed above providing sellers with the optimum approach to create additional bids for their property.
OFFERING METHODS
ABSOLUTE OR WITHOUT RESERVE – There is no minimum bid and the seller is committed to sell the property to the highest bidder, regardless of price.
WITH RESERVE – The seller reserves the right to accept or reject the highest bid.
DISCLOSED OR NON DISCLOSED RESERVE – A minimum reserve may be disclosed committing the seller to sell the property to the highest bidder either at or over the published minimum bid. The reserve may also be unpublished granting the seller the right to accept or reject the highest bid.
TYPES OF BIDDING
TRADITIONAL BIDDING – In a traditional auction, the auctioneer begins by asking for an opening bid and then the audience continues to escalate bids until the highest bidder is determined.
HIGH BIDDER'S CHOICE - In this style of bidding, similar properties are grouped on a display next to the auctioneer. Bidders then bid for the right to select the property of their choice from the display. The highest bidder's choice is then removed and a subsequent round of bidding begins. This style of bidding is most commonly used on the sale of new construction condominiums or townhomes.
MULTI-PAR BIDDING – Multi-Par Bidding is most commonly used on the sale of large undeveloped land where multiple parcels of land are offered. This method allows the bidder to place bids for various configurations of parcels based on the bidder's desire to assmeble the parcels.
SALE INFORMATION
LIVE BID AUCTION - ON PREMISE OR ONLINE
Live bidding may be on premise, and, or online day of sale.
PROPERTY AUCTION INFORMATION
A detailed information packet has been assembled which contains pertinent information related to the property(s), the auction and the terms of sale. These are available on-line and will be available days of preview and sale.
TERMS OF SALE
Auctions will be conducted subject to the terms of sale and purchase contained in published terms and conditions.
BUYER'S PREMIUM (BUYER'S FEE)
A ten percent (10%) Buyer’s Premium will be added to the final bid price, per the Terms
of the Sale, and their sum shall constitute the contract sales price. All commissions taken from the buyer's premium.
DAY OF SALE GOOD FAITH FUNDS
15% of the contract price to be paid on day of sale. Closing to occur on or before 30 days from day of sale (or otherwise if stated differently in terms and conditions).
BROKER PARTICIPATION INVITED
A referral fee will be paid to the Realtor / Broker whose registered buyer closes on this property. Please refer to the broker registration requirements for details.