An Overview of the Real Estate Auction Process
Potential Seller – If you are considering auctioning real estate, following is a general guideline of how the auction process works:
We typically require 4 – 6 weeks to prepare for an auction, so a date will be selected 4 – 6 weeks
out for your auction. We schedule an appointment for one of our staff members to meet you
at the property to view it and discuss your particular situation. A one-page “Auction Booking
Contract” is signed by you to enter into an agreement to auction your property.
With a real estate auction, you have the ability to set a minimum (“reserve”)
amount that you will accept for the property. We can assist you with determining
the property’s approximate market value and can provide you with comparable sales if needed.
→ If you accept the high bid at the auction and the property sells,
it turns into a regular real estate closing and closes through a local
title company. Closings occur within 30 days of the auction date.
Our commission is charged to the buyer in the form of a “Buyer’s Premium”, so
you, the Seller, do not pay commission. Your costs, as the Seller, include an
advertising fee paid up front to cover a portion of the advertising cost we incur,
and the normal closing costs that you will pay at closing. These closing costs
will be paid no matter how the property is sold and include title insurance,
proration of taxes, deed preparation, etc.
→ If the auction does not produce an amount that is satisfactory to you, you do
not have to sell the property. If you do not sell the property, the only money you
will be ‘out’ is the advertising money paid up front.
Other important points:
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All properties are sold ‘as is’ with no inspections or repairs required.
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Properties do not have to be ‘up to code’.
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An Adam’s staff member will gather and obtain information to properly market and advertise the property.
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Adam’s does extensive print advertising (often color ads) and has a strong web presence to market properties including our company website, other auction websites, Facebook, You Tube, Twitter and more.
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An open house will be held approximately one week prior to your auction date.
Benefits of using the Auction Method to Sell Real Estate:
1.) Cost Effectiveness – With our commission charged to the Buyer, you, the Seller
have fewer costs and therefore greater flexibility in the price you can accept for the property.
2.) Flexibility – The Seller sets a minimum amount ‘reserve amount’ acceptable for the
property and has the ability to change this amount right up to the auction itself.
3.) Timeliness – Average property is sold within a 4-6 week time frame and closes 30
days later.
4.) Ease – No contingencies are allowed. Property is sold ‘as is’ with no repairs or inspections.
5.) Fewer Fall-Throughs – Buyers come prepared to buy with cash or financing in place;
must put down a substantial, non-refundable earnest money deposit if winning bidder. As a result,
fewer deal fall apart with the auction method.