Overview - Auctions are a great way to provide exposure to a property. Just by having the word “Auction” in the marketing materials can accelerate a property into a targeted market’s buyer pool of ready, willing, and able buyers. The auction process is the most aggressive form of Real Estate marketing I know of because it uses multiple types of advertising media like Direct Mail, Internet Sites, Signage, Printed Flyers, Newspapers, targeted Social Media ads, and more. These marketing venues create a deadline, competitive bid environment, and buyer urgency. An auction creates a scenario where the property being offered does not get lost in a sea of property listings. It stands out and, in some cases, will delay the market on competing properties. An Auction is a great way to jumpstart a property for sale. We conduct Live Auctions, Online Only Auctions, Live Auctions with Internet Bidding and Equipment Auctions, both Live and Online.

Auctions don’t have to be a “Firesale” - Some people look at auctions as a last resort or a “fire sale”. In some cases, that’s true. However, a high demand property is the ideal auction candidate. In our market, properties that have any or all of the following are good examples of a high demand property.  Good visibility, high traffic areas, good open land, and farm land. There’s no good reason to cap or take a wild guess at what a property with these characteristics are worth. The market will decide a property’s value as long as the Auction for that property is properly conducted and exposed.

Multi-Parcel Auction - One of the most effective ways of selling a large tract is to have a multi-parcel auction. This is where one offers individual tracts that adjoin first, then you add their total bids to arrive at a starting bid for the entire property. It’s a great way to have bidders for smaller tracts compete with bidders for large tracts. This protects the price per acre from dropping because of large acreage.

Absolute Auction versus Auction with Reserve - Auctions can be Absolute or with Reserve. Most Sellers want to have a reserve as a safety net. Most of our auctions are with reserve and have a Buyer’s Premium rather than a seller paid commission.

Marketing Campaign - United Country has a team of web designers, copy writers, graphic designers, internet and social media experts, and project managers that work for us on our auctions. We provide a campaign budget for the seller to approve prior to auction campaign. Our marketing team was created for auction marketing and have won national marketing awards. The marketing campaign consists of online marketing, social media advertising, direct mail, e-mail, printed publications, signage, drone video and photography, and newspapers. The marketing campaign begins 30-45 days prior to auction.

Auction Contract - The Auction Contract is created to protect the Seller. Bidders understand prior to auction that if they are the winning bidder they must put 10% Earnest Money deposit down and close within the time frame allotted in the Terms and Conditions of the Auction which is usually 30-45 days. They are buying the property “As-Is”, with any and all faults, and if they don’t close within the stated timeframe they are subject to lose their Earnest Money Deposit. They also must complete their own due diligence prior to bidding. The Purchase Contract does not have any conditions other than seller providing the buyer with a clean and marketable title.

In Summary

  1. Aggressive market strategy
  2. Deadline for competitive bidding
  3. Bids can be made online, live, or both
  4. Terms of Sale predetermined
  5. Contract is solid limiting buyer loopholes
  6. 10% Earnest Money Deposit from Buyer
  7. 30-45 day close
  8. Buyer’s premium rather than seller paid commission
  9. Seller can have a reserve or minimum for protection

 

If you have any questions please contact me.

 

Matt Gallimore – Real Estate Broker / Auctioneer / Appraiser / MBA

United Country – Blue Ridge Land and Auction

540-239-2585; Gallimore.matt@gmail.com