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Real Estate Auction Marketing - Questions and Answers

Will Auction Marketing Work With My Real Estate?

It depends.  If not, we’ll be the first to tell you.  In many cases, the auction method succeeds where there is little demand and other marketing tools have failed.  For high demand properties, auction marketing works better than any option available – and often produces higher than anticipated sale prices.

We’ve successfully sold at auction “first time on the market” developments, single family homes, condos and townhouses, acreage tracts, islands, office buildings, vacant and improved commercial and industrial sites, complete resort operations, manufacturing facilities, plantations, timberland, farmland, resort and waterfront properties and related personal assets.

How Does Auction Marketing Work?

It utilizes aggressive advertising and promotion to focus the entire market’s attention on one property, assembles every real buyer for your property in the same place at the same time – then, it capitalizes on the competition between all real buyers to force the price to its highest level, selling on terms and conditions and at a time and place established by the seller.

What Kind Of Price Will I Receive At Auction?

Auction Marketing compels all real buyers to be present on sale day and make their best offer – auction prices will generally be the top of current market value.  Sometimes demand is far greater than anyone anticipated and the sale day price exceeds all expectations.

Why Do So Many Buyers Attend Auctions?

Many are bargain hunters and speculators – they set the minimum price levels from which auction prices move upward. Many investors and final users purchase at auction because it is very time efficient, they know the property will sell, and feel comfortable in receiving adequate value in an open bidding process.

How Does Auction Marketing Compare To Conventional Real Estate Sales Efforts?

It’s much quicker than normal real estate marketing, often results in an equivalent or higher price, dramatically reduces marketing time, eliminates holding costs, conducts a transaction on the seller’s terms and conditions, reduces normal seller’s liabilities and eliminates haggling over minor details.

What Is The Cost Of Auction Marketing?

Auction marketing campaigns allocate from 2% to 5% anticipated sale price for advertising, promotion and public relations, in addition to the auction marketing fee. Many of the costs normally paid by the seller are transferred to the purchaser, resulting in net marketing costs generally equivalent to or less than standard real estate brokerage commissions. Net proceeds are often much better.

What Kind Of Sellers Utilize Auction Marketing?

Individuals, estates, privately held and publicly traded corporations, institutional owners, real estate developers, banks and financial institutions, insurance companies, partnerships, REIT’s, court systems and an assortment of other sellers who are called on to make asset disposition decisions and quickly recognize the benefits of selling at auction.


How Can I Be Sure Of Selecting The Right Auction Marketing Organization?

Ask for letters of reference, brochures and videos from previous sales.  Select a real estate auction marketing organization, not just a general auctioneer. Be sure your auction professionals are members of the National Auctioneers Association and the National Association of REALTORS.  Look for professional designations from both the real estate and the auction marketing professions, such as GRI (Graduate, REALTORS Institute), CRB (Certified Real Estate Brokerage Manager), CAI (Certified Auctioneers Institute), and AARE (Accredited Auctioneer of Real Estate).  Ask for financial references and investigate real estate brokerage/development experience and background when appropriate.

Can Real Estate Brokers Participate In The Auction Process?

Absolutely – many auction transactions are referred to our firm by real estate brokers.  Our broker participation program invites all brokers to bring prospects/buyers to your auction event.


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