period of time than traditional brokerage!

Although auction marketing is gaining in popularity, the auction process is still greatly misunderstood by many estate planning professionals and the general public. Even the most knowledgeable lenders, attorneys, financial planners, accountants, and their residential and commercial real estate clients don’t understand the financial benefits of a well-run real estate auction.

The benefits of selling real estate at Auction are many but almost all arise from a shorter marketing period. Months and sometimes years of marketing expense are eliminated. This shorter time frame minimizes the risk of declining asset value, attracts the highest number of potential buyers, and provides numerous benefits to the seller and their legal, financial and accounting advisors.

Here are just some of the highlighted benefits:

High Exposure to Prospects.

Traditional real estate brokerage marketing pales when compared to the intensity of high impact, high visibility auction advertising and promotional techniques. A well-run real estate auction is an event attracting the attention of buyers and the news media. Multi-colored brochures, eye catching display ads in newspapers,trade journals and magazines, brightly colored signs, unique public relations campaigns, and professionally done web sites attract the attention of local, regional, and even global bidders. These prospects can instantly gain access to information about the property and then contact the auction firm to get more details about the property and the auction. Many of these potential buyers would never be reached by traditional real estate marketing methods and the property may sell for much less than what it’s worth.

Higher Sales Prices Than Traditional Brokerage.

Auctions allow buyers to bid more than the listing price! Traditionally, a broker lists a property for more than they expect the owner to receive. Buyers then make low counteroffers trying to determine what the seller will really take. This results in the property being on the market for a long period of time or selling very quickly (because the property was undervalued.) Have you ever heard of a property selling within 2 hours after going on the market and wondering whether it would have sold for more if more people had known that it was for sale? By using a well-run real estate auction, all of the qualified buyers in the market at the time of the auction will be given the opportunity to bid against each other.
Naturally, this will increase the price of the property until it reaches it’s true market value. Contrary to popular belief, the best properties to sell at auction are the highly desirable homes, lots or commercial properties that many people desire.

Pre-Qualified Buyers.

Because a deposit of up to 10% in the form of a cashiers or certified check is received from the Buyer upon the signing of the auction sales agreement, only truly qualified buyers participate in the bidding. “Tire kickers” are eliminated. By selling at auction, the seller knows that the prospects are serious and have the financing in place to complete the transaction. How many private transactions have you heard about or been involved with where the financing fell through at the last minute and the buyer could not complete the transaction? This almost never happens at auction!

Sense of Urgency Created.

The axiom, “He who hesitates is lost,” is never truer than during a real estate auction. Prospects who have been dragging their feet are now forced to get serious or lose the property. Because potential bidders know that a property will be sold on a specific date at a specific time, the serious prospects will surface to do their “due diligence.” Commercial buyers and developers know that if they don’t act quickly and decisively on a property being offered at auction, their competition will. Because of this sense of urgency, a momentum is created causing buyers to bid beyond their original self imposed price limitations, rationalizing that “if I bid a few more dollars, the property is mine!” This sounds like wishful thinking, but it happens to even the most sophisticated buyer at almost every well-run real estate auction.

Temporarily “Frozen” Market.

The lag time between the time a potential buyer learns of an auction through word of mouth, signage, and brochures, or targeted advertising and the actual auction date is short, usually 30 to 60 days. This motivates potential bidders to wait until the auction before making a buying decision on similar properties in the same general location. This in effect “freezes” the market of similar properties allowing the auctioned property to be highlighted. It is impossible for conventionally marketed properties to compete for attention with one being auctioned in the same area. This is because the buyer is afraid of buying a similar property and losing out on a “good deal” at the auction. Take the example of a residential homebuyer who desperately wants to purchase a house in a certain neighborhood and sees that one of the properties in that neighborhood is going to be auctioned in 2 weeks. Do you think she will submit an offer on another property or wait until the auction?

“Deal Killing” Contingencies Are Eliminated

Under traditional brokerage, the buyer dictates most of the terms of the agreement of sale, i.e., settlement date, amount of deposit, which tests and inspections will be done, the terms of a mortgage contingency and many other buyer protections. Under the auction marketing method, the seller determines the terms of the agreement of sale. The seller knows exactly what day settlement will take place, the seller determines how much will be deposited on the property and the seller can eliminate most of the traditional contingencies. Contingencies and renegotiations will not slow down the sale or settlement of a property sold at auction because these issues have already been addressed and resolved. Our auction firm suggests that contingencies that are informative or are going to be required by a lending institution such as a home inspection, wood infestation inspection, water tests and septic tests be done prior to the auction.
High Carrying Costs Are Reduced

Months and sometimes years (on larger properties) of interest, taxes, insurance, association fees, and property maintenance expense and payments are eliminated. The avoidance of these carrying costs often cannot be achieved by traditional brokerage where the marketing time is much longer and the settlement date is unknown.

Time Value of Money

Because of the nature of an auction’s expedited marketing campaign, the seller will receive funds from the sale of their real estate sooner than with a traditional brokerage approach. When it comes to getting paid, sooner is always better than later! An auction’s high impact, shorter marketing and settlement period allows a seller of real estate to take full advantage of settlement funds for otherwise lost opportunities. In effect, the sooner a property sells, the more money will be available for reinvestment into other opportunities.


SO HOW DO I GET STARTED?
Contact me at 352 217 3169 or email me at msprague@bestauctioneer.com for a confidential consultation. We will visit you and view your property in order to prepare a market analysis outlining your options and how we can best achieve your goals.
THE MARKETING CAMPAIGN
Once you have decided to sell your property, we will begin a completely individualized marketing campaign to position the property effectively in the marketplace. The plan will include:
• Professional photography that highlights the features of the property.
• Layout and design of custom full-color brochure, display advertisements and signage.
• Development of advertising schedule of local and sometimes national newspapers; magazines and other publications germane to the property.
• Listing, photo gallery and property information posted to our website and several other sites boasting millions of viewers.
• Preparation of a comprehensive Property Information Package to assist buyers with their due diligence.
• On-site consultations allowing prospective buyers to view the property and gather additional information.


AUCTION DAY
Performance on auction day characterizes the differences between one auction company and another. The single most important element of the auction is the auctioneer. His skill, ability, salesmanship and overall performance will directly affect YOUR bottom line. Our Auctioneer will control the auction's tempo to create excitement among the buyers and encourage bidders enthusiasm. These techniques are needed to keep the auction moving and the buyers attention. The ability to attract good buyers is an important part of the auction sale day success.
Our auctions are designed with the comfort and convenience of the buying customer in mind. When buyers learn its a SUNSTATE AUCTION they know they will be treated fairly and will be sure to be in attendance.

Our staff of professional bid assistants and our Auction manager will see that:
• Each bidder is registered, assigned a bid number and given a registration package that contains sale day documents such as contracts, terms and conditions and disclosures.
• The auctioneer discusses the terms and conditions of the sale prior to the auction, as well as, how the property is offered.
• Immediately following the auction we execute a purchase and sales contract between the seller and buyer, collect the buyers deposit and schedule a closing date.


POST-AUCTION
At SUNSTATE AUCTIONS we realize our commitment is not fulfilled until the buyer closes on the property and we diligently coordinate the closing until the transaction is funded and title is transferred, usually within 30 days of auction day.
At our company, we believe the auction method is superior to other methods of sale. We can easily explain to sellers that the urgency of an auction, the effective marketing we do, and the good price realized are all benefits that sellers appreciate. Call us with questions you have.

DON'T DELAY....CALL TODAY! 352.217.3169

SUNSTATE AUCTIONS..
The Real Estate Auction People