Buying

UNRESERVED AUCTION CONCEPT- If a single key to conducting a successful marketing campaign exists, it lies in actively managing the manner in which the audience of prospective buyers perceives the sale of the property. Advertising dollars work harder when they promote a seller’s commitment to sell a property at a specific time. It is simple, but true; a committed seller attracts committed buyers.

We believe it is very beneficial to structure the auction in order that buyers perceive that they can obtain the desired property at their price. Many affluent buyers will not make the effort to use their time and money to prepare for the auction if they feel the seller has an unrealistic reserve price, or has simply not made the commitment to sell the property on the day bids are due.

The benefits gained by offering this property for sale at unreserved auction cannot be overemphasized, for several reasons. First, our unreserved auctions result in an overall increase in responses from prospective buyers. Second, unreserved auctions result in higher realized prices for properties than if the properties were offered on a reserve basis.

Buyers have complete confidence that the property being auctioned will be sold, significantly motivating them to submit a bid and to participate in the bidding, and to buy the property. In summary, an unreserved / absolute auction has a significant bearing on the total attendance of qualified buyers at the auction and, most importantly, realizes higher prices than an auction subject to the seller's approval of the high bid price.

PUBLISHED MINIMUM BID AUCTION – Utilizing the Published Minimum Bid Strategy, the Seller is committed to sell the property at or above the published minimum bid for the property. The minimum bid is published in all advertising and is a part of the terms and conditions of the auction. This method is only effective when the Published Minimum Bid is well under the anticipated sales price of the property (usually 60% of the appraised value or last listing price, whichever is lower). The advantage to the Seller is that they are not obligated to sell the property below the Published Minimum Bid. The disadvantage is that if the Published Minimum Bid is set too high, this will deter bidder interest and response and those bidders may not participate.

AUCTION WITH RESERVATION / SUBJECT TO SELLER’S APPROVAL – A seller confirmation auction provides the Seller with time to accept, negotiate towards acceptance, or reject the best bid as a result of the real estate auction. A drawback of such an auction is that a prospective buyer may not fully invest the time and expense of researching a property when they have no certainty that they will get the property even if they are the high bidder. Further, if the Seller rejects the highest offer as a result of the competitive bidding process, the Auctioneers will charge an Auction Production Fee. The Auction Production Fee would not be less than $5,000.00 and would be due up-front with the marketing investment. Further, we’d recommend offering a $2,500.00 award to the high bidder, if his/her bid was not accepted as a result of the offering.