SELLING AT AUCTION

Q: What are auctions?

A: Auctions are an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property, most certainly including those that are none distressed. A well executed Real Estate Auction will compact 6 month of marketing into 30 days. It is a Marketing method that creates both a sense urgency and excitement. Every buyer is excited about the possibility of getting a bargain which in turn creates urgency because of the established deadlines to purchase. For us an auction is merely a method of establishing a sales price, after we establish the sales price you will handle the rest of the transaction as you would a regular transaction.

Q: What are the advantages of auctioning real estate?

A: Auctions create a sense of urgency and ultimately produces true fair market value. When a group of serious buyers are brought together to compete, it creates a win-win situation for both parties. The competitive atmosphere gets the blood rushing which leads to spirited bidding.

Q: What is “fair market value”?

A: Fair market value is what a ready willing and able buyer will pay for your property in an open market.

Q: What types of properties sell at auction?

A: All types: Vacant land, single family homes, multi-family homes, commercial buildings, condos, town homes, sub-divisions, and industrial buildings.

Q: What determines whether my property is a good candidate for auction?

A: To determine is a particular property will make the right fit for the auctions, many recommend that we use the 2/3 rule. This means that if your property satisfies two out of the three characteristics listed below that property would make a great auction candidate.
Market- If you are in a changing market or dull market auctions can revive that listing.
Seller- If the seller has an immediate need for cash, or may be involved in a partnership or marital dissolution. Maybe they are retiring or relocating which may promote a need for a quick sale.
Property – A property with substantial equity, unique or high demand property, vacant property (the cost of holding on to vacant property can become very costly).

Q: Are there different kinds of real estate auctions?

A:

• Absolute Auction (auction without reserve)
  An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount. The seller may not bid personally or through an agent. Also know as an auction without reserve.
• Minimum Bid Auction
  An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure or advertisements and is announced at the auctions.
• Reserve Auction (auction subject to confirmation)
  The minimum bid is not published and the seller reserves the right to accept or reject the highest bid within a specified time frame from immediately following the auction up to 72 hours after the auction concludes.

Q: How does Hunter’s Realty, Inc get compensated for their services?

A: The buyer pays our commission in the form of a buyer’s premium. You, as the seller, do not pay a commission; however you are responsible for the marketing expenses.

Q: What is a buyer’s premium?

A: A buyer’s premium is the advertised percentage of the high bid price to determine the total contract price to be paid by the buyer. The total sale price includes the high bid amount plus the buyer’s premium. For example, if a property sells for $100,000 and the buyer’s premium is 7%, the buyer will pay a total sale price of $107,000. At closing, the seller will receive $100,000.

Q: What is the usual timetable for a real estate auction?

A: Typically, we recommend allowing 30 days from the time your property is listed until the auction date. This schedule ensures we have enough time for brochure distribution, posting signs, several rounds of advertising, and previewing.

Q: Where is the actual real estate auction held?

A: The Carleton Hotel 1110 Pleasant St. Oak Park Il 60302 February 1, 2007 6:30.

Q: How do I know whether potential buyers are qualified to buy my property?

A: We will use a system to get all serious bidders on a level playing field before they begin competing for your property. When registering bidders must meet the following criteria: They must sign the terms and conditions agreeing to the rules of the auction and submit a cashier check for their initial down payment. No one may participate unless they have properly registered. Furthermore, after the property sells, the successful bidder will sign a bid acknowledgment form and a no-contingency purchase and sale agreement.

Q: Will I sign an agreement if I decide to sell my property at auction?

A: Yes, you will sign a Real Estate Auction Listing Agreement provided by Hunter’s Realty, Inc.

Q: Will potential bidders be able to view my property prior to the auction?

A: Yes there will be two-three auction previews set up just prior to your auction date.

Q: What are "previews"?

A: Previews are basically property showings of real estate to be auctioned. It is strongly recommended that all buyers preview before bidding. We also encourage you to use the opportunity to bring your contractor and/or home inspector with your for an inspection