The Auction Method
Online auctions are an increasingly popular method to buy and sell real estate.. While this method may not be as popular as the traditional listing method of selling real estate it can be extremely effective in the right situation.
The term “selling at auction” may conjure up images of an auctioneer standing in front of a crowd of people calling out numbers at a rapid pace but auctions are much more than this. Think of an auction as a short, intense, accelerated marketing campaign. This method requires the seller of the property to pay a certain amount upfront to be used for marketing and auction expense. In addition to listing the property on the MLS like a traditional listing, an auction campaign may also include additional marketing such as custom signage, direct mail, targeted email blasts, submission to paid auction and real estate websites and social media sites, it may also include print advertising in newspapers and publications that are of interest to prospective buyers. A great amount of time and effort is expended by the agent and auctioneer during an auction marketing campaign.
An auction typically brings multiple interested buyers together at one time and forces them to compete against each other in their interest of owning the property. Because of the competitive nature of an auction the price achieved may at times exceed what you may have received for your property with a traditional listing.
The auction itself may be a traditional live auction or it may be an online only auction or a combination of both. As your agent and auctioneer working exclusively for you I will help you evaluate your property and situation and determine the best strategy for your property.
Many people associate real estate auctions with distressed properties but this is no longer the case. Billions of dollars worth of real estate are sold in the US every year and all types of properties are sold, from commercial properties, farms and land, homes and high end luxury properties.
An auction is a faster and more simple process to sell real estate than a traditional listing. A typical auction campaign lasts from 4-6 weeks, at the end of the auction you will have a buyer, unlike a traditional listing you have a definite date where you know the property will sell. Also unlike a traditional listing where you receive offers with contingencies such as financing, inspections, etc. The contract the buyer signs after the the auction is a non-contingent offer and the buyer pays a non-refundable deposit. There are no financing or inspection contingencies for the buyer after an auction and no endless negotiations. After the auction the closing process proceeds in the same manner as a traditional listing closing does.
An auction is an excellent choice if you wish to sell your property quickly or you wish to simplify the selling process
The Listing Method
Listing your property "for sale" can be an effective way to sell your property. Your property is listed for a fixed price and placed on our website and a variety of online real estate listing sites. Using this method the time it takes to sell your property is an “unknown”, you may get an offer immediately, or it may take weeks or months. Using this method there is no “upfront cost” to the seller, any marketing costs are paid by the broker and the broker gets a commission or a percentage of the selling price when the property sells. If the property does not sell during the agreed upon listing time the broker does not get paid and there is no cost to the seller.
A lower priced property will typically sell faster than a comparative property that is priced higher. You may want to take this into account when determining the price to list your property. Sometimes it makes sense to sell at a lower price rather than keep owning a property that you no longer need or want. You may have mortgage payments, insurance, and taxes to pay so every month you own the property means more that you have invested in it. It may be wise to accept a lower price today from a qualified buyer rather than reject an offer and hope for a higher price later on.
A potential buyer will look at your property and make an offer typically for a lesser amount than what it is listed for, this offer from the buyer is usually a conditional offer, based on the ability of the offeror to secure financing and a satisfactory appraisal, property inspections, etc. As a seller you may accept the offer “as is” or make a counter-offer based on a price and terms that you desire. Be aware that making a counter-offer voids all previous offers so if the potential buyer does not accept your counter-offer you cannot go back and accept their previous offer. After the offer is accepted it normally takes 30-60 days to closing which is when the purchaser gains legal possession of the property.
As your agent I will represent you throughout the the process starting from the listing, to marketing, to closing and will communicate with you regularly and give you any updates on marketing response, the closing process etc. Starting as soon as you list your property with me I will research the property, photograph it and present it to potential buyers in the best manner possible. Once there is an offer and it has been accepted I monitor the closing process and communicate with closing attorneys, lenders, etc to ensure that the process moves forward in a timely manner.