Sellers Frequently Asked Questions
If a property hasn’t sold by traditional methods, why would it sell at auction?
- Marketing: Auctions have been noted as a proven, effective marketing tool. The coordinated use of a large pool of funds in our targeted marketing campaigns is far more effective than typical open-ended sales campaigns. Wide exposure in a short time frame can often compare to the dollar figure of an entire advertising budget for an ordinary, offline listing.
- The Auction Process: The auction process starts with an opening bid. Because buyers often search for property by asking price, the lower (starting) prices of the auction format tend to attract a wider audience to an auction property.
- Value: The property may be listed at an unrealistic sales price. When a sales price is out of line with the true market value, the property attracts no buyer attention. With an auction, the property’s opening bid starts at the lowest price point you may accept and escalates to the fair market value.
What is the difference between an absolute and a reserve auction?
An absolute auction presents a property with no minimum bid. The final bid price is the sale price or the “Buy It Now” price.
A reserve auction sets a minimum price that must be met or exceeded before the seller is obligated to sell. This is common when a seller faces a certain basis or debt that they must cover in order to complete the sale of the property. This reserve price is only known by the seller and their listing broker. However, it will be transparent to buyers once the reserve price is met. Seller is obligated to sell to the winning bidder of the auction, regardless of the price, so long as the winning bidder meets or exceeds the Reserve and is ready, willing and able to close under the sales contract.