Questions & Answers

Q:  Aren’t real estate auctions just for distressed properties, like foreclosures and bankruptcies?

A:  Years ago this was very much the case. But more recently, auction has been recognized as a timely and efficient way of selling all types of real estate; from the distressed properties you mentioned, to luxury and high profile properties. A casual search on the internet will verify this.

Q:  Timely and efficient? Please explain.

A:  In a matter of weeks, we can promote and conduct an auction. Our advertising is intensive and property-specific. We typically hold one open house, at which we distribute property information to buyers and educate them on the auction process. The auction itself takes all of fifteen minutes, and closing is usually in 30 days or less. We maintain momentum.

Q:  It has to be very stressful for sellers to think that their property may sell too low. Why would anyone risk that?

A:  We allow our sellers a reserve price or minimum bid to protect their interests. This puts them at ease.

Q:  What commission do you charge?

A:  Commission rates vary depending on who assumes the advertising and other costs of sale and also on the property value. Commission typically paid by a seller ranges from 0% to 10%. We may also charge a Buyer’s Fee, depending on the situation and the seller's wishes.

Q:  So why do you favor auction over conventional listings?

A:  The set date of an auction motivates potential buyers to gather information and make decisions. This is always a good thing, but especially so with our current market; we want to help buyers overcome the hesitancy and fear of commitment that accompanies our uncertain economy. Another advantage is that we typically sell with no contingencies and collect a sizeable non-refundable down payment on sale day. This attracts serious, capable buyers. Many times an acceptable offer with favorable terms comes in before the auction. Auctions create urgency.

Q:  What about people whose property is already listed? If they would like an auction, should they cancel their listing contract?

A:  They most certainly should not try to cancel the contract, as this would be unfair to their current broker who has invested time and incurred expenses. The seller is free to contact us to discuss the possibilities of an auction, and may wish to consult with their broker as well. An arrangement can be made to satisfy all parties and get the property sold. And that, of course, is every broker's responsibility and desire.