selling FAQs

A. "A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property-including those that are non-distressed-through open, competitive bidding."
NATIONAL ASSOCIATION OF REALTORS

A. After a consultation with you, an associate will determine if the auction method is suitable for you and your property. Our experienced staff will then design a custom-tailored to fit your property's marketing needs. The auction process provides the seller and the buyer with a no-contingency escrow and closing within 30 days of the auction date. Most realty auctions take place on location, though gallery auctions are effective as well in pooling the marketing funds for a stronger marketing program.

A. As the seller, you will appreciate the opportunity to dispose of properties, let alone carrying costs, quickly and with no hassle, as well as the fact that you are in control of when the sale will take place and what the minimum price will be. Also refer to the complete list of advantages.

A. By all means, no! In fact, there are many other types of auctions that carry a very positive image, for example, art and antique auctions. The truth is that the majority of Real Estate Auctions, across the country today, is not due to distress, but instead are the result of the smart seller realizing the advantages of using the auction method, and estimates show that over 30% of all real estate in the U.S. is now sold using the auction method's accelerated marketing. Our auction savvy society has propelled competitive bidding to an estimated $28 billion in annual sales. Fortune 500 companies including McDonald's, Wal-Mart, K-Mart, Chevron and Exxon utilize this result oriented method, because it is the most cost effective and efficient way to realize the highest price in the shortest time frame. Government agencies such as RTC, FDIC, U.S. Marshals Service and the S.B.A. all take advantage of the accelerated marketing method. It is obviously being recognized as a win-win situation.

A. Perfect! Have you ever witnessed competition in a hot market? What better forum to showcase your property in a hot market, than an arena of competitive bidding! Almost inevitably the price surpasses the seller's expectations. This is where sellers, at times limit their upside potential because they assume that they know the true market value of their property. The auction method can actually set a higher market value due to the principle of supply and demand.

A. The only true measure of value of real estate, at any given time, is the highest amount that someone else is willing to pay for it under competitive bidding from informed and motivated buyers. At auction, values settle at the level the market can bear, neither elevated nor deflated.

A. The failure to disclose is the greatest risk; however your only monetary risk is the possibility of losing your advertising expense. But keep in mind that your advertising is still profitable given the interest generated on the market. Our risk of loss of labor will be of no cost to you.

A. Certainly! And furthermore, you are completely free to reject the final bid if it is nowhere near your minimum and we will continue to market the property for a short listing period, still riding on the interest generated by the Accelerated Marketing Program.

The following are the 2 different ways we can market your property at auction with a minimum. We will consult with you about these and aid you in deciding which would best serve your situation and property.

1. RESERVE AUCTION (OR AUCTION SUBJECT TO SELLERS CONFIRMATION)
• It allows the seller to predetermine the floor price at which the property will be sold.
• The seller is not obligated to accept a price that is unsatisfactory.
• The seller may accept or reject the high bid within a specified time, set by the auction company.
• In effect, the high bid takes on the properties of an offer.
• The main disadvantage of this type is that buyers may not invest the time and expense when there is no certainty they will be able to buy the property, even if they are the highest bidder.
2. MINIMUM BID AUCTION
• The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements, and is announced at the auction.
• Reduced risk for seller, as the sales price must be above a minimum acceptable level.
• Buyers know they will be able to buy at or above the minimum.
• The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price, and therefore, it must be low enough to act as an inducement rather than a hindrance.

A. This is known as an ABSOLUTE AUCTION:

• The property is sold to the highest bidder, regardless of the price.
• Since a sale is guaranteed, buyer excitement and participation are heightened.
• It generates maximum response from the market place.
• Many sellers, including financial institutions and government agencies have begun to use this method more frequently.
• Despite the fact this type of sale attracts a larger number of buyers and high bid offers, the guarantee sale at the highest bid, regardless of the price, often makes a seller nervous and at risk.

A. The Auction Method of Marketing brings your property to the table, names the day of sale, and promotes an attitude of action and decision making in qualified buyers. One of the most powerful success factors in the Auction Method of Marketing is the Accelerated Marketing Program. The Accelerated Marketing Program is an intense, custom-tailored marketing program that fits the needs of your piece of property and is designed to create a "deadline" mindset in the potential buyers. Our marketing experts can and will design an advertising program that will target the prime audience suited for your property and highlight it intensely. This program will bring a massive degree of attention to your property, in a concise period of time. Please see the Assiter & Associates.

A. We do not recommend this approach for this reason, when a property has been on the market prior to an auction, the property is then "tagged" with a price. The way an auction works is by taking the minimum acceptable price, set by the seller, and allowing the competitive bidding to increase that price. In a private treaty sale, the seller sets a price that he or she may be willing to reduce at some point. When that price has been previously advertised, it affects the psychology of the potential buyer and could remove the outcome of true market value. Auctions work best when no one knows what the seller thinks its worth.

A. Absolutely! In fact, your efforts were far from in vain! The accelerated marketing program has exposed your property to a large segment of the buying public. Negotiations continue with the potential prospects that exist within your back up bidders. We will continue to receive feedback on your property due to the marketing.

A. This time frame will vary depending upon the type of property to be auctioned. Usually the process takes 30 to 90 days from the time an Assiter & Associates contract is executed to the closing.

A. There are many things that we will advise you of on an individual basis but probably the most important is not to discuss the price of the property you're selling with anyone prior to the auction. Let us do that, we know how.

A. Not necessarily. Real Estate auctions are generally successful all year long, though the market may tend to take on the seasonal trends of the local real estate market. However, it is our experience that if a potential buyer is interested in purchasing a property, they will make arrangements to attend the auction, no matter what time of the year it is.

A. At the seller's approval, Assiter & Associates will charge the buyer for the commission in the form of a buyer's premium, leaving the seller to cover only the cost of marketing the property and some closing costs, all approved by the seller prior to contract signing.

A. The use of the buyer's premium is so effective because it essentially shifts some of the auction expense from you to the buyer, who will also benefit, because without it, they may not have had the opportunity to purchase your property at auction. A buyer's premium is an amount of money, usually an advertised percentage of the high bid, added to the high bid to determine the total price to be paid by the buyer.
Example: assume the buyer's premium is 10% and the high bid is $1000, then $100 a premium will be added to the high bid to arrive at the total purchase price of $1100.

A. When selling a large tract of land, we feel that this method is most effective for realizing the maximum dollar amount. The land is divided into different parcels, and the land in its entirety or any combination of parcels may be bid on. No bidding is closed until the conclusion of the auction, and any bidder may raise an offer on any parcel, any combination of parcels, or on the property in its entirety.

A. This method is perfect for investors, brokers, or financial institutions with multiple properties, and individuals wishing to consign a piece of property! There are significant benefits in the lowering of your advertising costs because we can pool the funds and provide for you more "bang for your buck". We can generate a larger, more diverse prospect audience because we are better equipped to cover more ground. This type of auction is held in a ballroom setting, eliminating the all day caravanning. The properties are previewed prior to the auction date and displayed via power point presentation at the auction.