 If
I hire an auctioneer to sell my property am I
required or forced to sell? |
No.
A seller may choose to sell real or personal property
with reserve, stating a minimum acceptable price
with the auctioneer. A seller may choose to sell
at absolute auction to the highest bidder. |
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| What
is the difference between absolute or reserve
auction? |
An
absolute auction is one in which the property
is sold to the highest qualified bidder with
no limiting conditions or amounts. The seller
may not bid personally or through an agent.
Absolute auctions can also be called auctions
without reserve.
Say,
for instance, that a piece of real estate --
a home -- is being sold at absolute auction.
The qualified bidder who makes the highest bid
during the auction will purchase the home.
A
reserve auction, or an auction with reserve,
is an auction in which the seller or the seller's
agent reserves the right to accept or reject
any and all bids. A minimum acceptable price
may or may not be disclosed and the seller reserves
the right to accept or reject any bid within
a specified time.
Say,
for instance, a seller has a car being offered
at a reserve auction. The seller can decide,
based on the bids, to sell the car or to reject
to sell the car for the amount offered during
the auction.
We
utilize both types of auctions on behalf of
clients. Both are valid forms of auctions; the
two simply are different ways of conducting
the auction on the client's behalf. Unless stated
otherwise, an auction is presumed to be held
with Reserve. This applies to personal or real
property.
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| What
are the requirements to bid at an auction? |
For
most auctions the terms and conditions are located
in the brochure or bidders packet and are announced
at the opening of the bidding. Consult with each
brochure as terms may vary or call the auctioneer.
Auctions are open to the public, but remember
you must have cash or certified funds to bid. |
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| Can
property be sold prior to the auction? |
Some
sellers choose to accept contracts prior to the
auction. Details on any auction can be obtained
by calling Kevin Wendt. |
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| What
makes the auction process work? |
Simple
-- saturation marketing. Full and complete exposure
of the property. Plus, hundreds, perhaps thousands,
interested bidders all competing against each
other. An auction is fundamental supply and demand
economics in action. Contact us today for a free
evaluation of your property and a free market
proposal. |
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| What
commission rate does an auction company charge?
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Commission
rates are comparable with those charged by private
treaty listings. However, an auction places more
emphasis on marketing to a larger target audience
in a timely manner. Normally, the seller pays
the marketing and advertising expense. |
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| Is
it advisable to sell personal property or business
equipment at the same time? |
Yes.
Our firm has a complete staff to coordinate an
auction that will generate the greatest possible
results based on the market. |
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| Can
real estate that has an expired listing be sold
at auction? |
Yes.
Although most auctions work the best on properties
first exposed to the market it is possible to
sell expired listings at auction. |
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| When
is the auction method of selling real estate most
effective? |
While
auctions work well in most real estate sale
situations, they are most effective when:
 The
property is highly desirable and bidding is
expected to maximize the sale price.
The
reduction in holding costs achieved by a prompt
auction sale yields a greater percentage of
retail value than a treaty sale.
The
seller needs to liquidate the property quickly.
The
property is in a changing or emerging market,
such as a rehabbed building or new subdivision,
where demand is uncertain.
The
market for the property is dull and conventional
sales techniques are not working.
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| In
a 1031 exchange of real estate what is the definition
of like kind? |
The
definition of "like kind" can be quite
broad. As long as the exchange property is also
investment real estate many types of exchanges
are possible. For example, farm land can be
exchanged for an apartment building, an office
building for vacant land, etc...
If
you would like to learn more on 1031 exchange
possibilities go to the 1031 area of our site.
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| Does
your firm handle private listings for Real Estate? |
Yes.
In addition to our Auction Services we offer traditional
List and Sell Brokerage Services. A free property
analysis and market proposal is available upon
request. |
