Auction Buyers Guide_Final

Buying Real Estate?
Use an Auction For the Best Results!
© 2014 RealEstateAuctions.com All Rights Reserved

There’s been an explosion of auction
popularity in recent years
• Online merchandise auction sites
• Popular TV shows focused on auctions
Did you know that in many countries around
the world, auctions are the preferred way to
buy and sell real estate?
Our international friends in Ireland, Australia
and some nations in Asia have long taken
advantage of all the benefits of real estate
auctions. You can, too.

When buying real estate, would you like:
• The transparency of seeing other competing offers?
• No negotiation period?
• The ability to fully inspect your potential purchase?
• A set date of sale?
• The opportunity to get a good deal?
• To eliminate the seller and broker from any decision
making?
• To eliminate broker favoritism?
• To eliminate discrimination?
• To eliminate the (behind the scenes) process traditional
real estate adopts when making an offer?
Then Choose a Real Estate Auction!

Auctions vs. Traditional Sale for Buyers
Here’s a look at how an auction is better for the buyer
than a traditional real estate sale
AUCTION METHOD
Known date of sale
No buyer/seller negotiations
Open, fair bidding. No “best-guess” offers
Bidders determine Fair Market Value
Buyers receive comprehensive due-diligence information
Set closing date, usually 30 days or sooner after the auction date
TRADITIONAL METHOD
Sales process may take weeks or months
Negotiations are often the sticking point in the process
Offers can be rejected with no feedback
Pricing is often set unrealistically
Rarely is fully-detailed information available early in process
Closing date is often TBD

Virtually all types of real estate can be
auctioned
• Single family
• Multi-family
• Condos
• Townhomes
• Commercial
• Investment
• Special-use
• Land
• Agricultural
• And More!

Some Example Properties
Hawthorne, Florida
USA
Omaha, Nebraska
USA
Tierrasanta, California
USA
New Kent County,
Virginia
USA
Fishhaven, Idaho
USA
La Terranas, Caribbean
DR
Gig Harbor, Washington
USA
Bonita, California
USA

What types of auctions will I encounter?
There are three popular options:
• Absolute Auction
• Minimum Bid Auction
• Auction With Undisclosed Reserve
Let’s take a look at an overview of each type of auction

Highest bid wins. Absolute Auctions generate by far the most interest
among buyers because of the opportunity to win the property with just one
more bid.
Auction Bidding Types
Minimum
Bid
Auction
Bidding begins at a minimum, acceptable price to the seller. Less popular
among bidders than the Absolute Auction, a Minimum Bid Auction
nonetheless is attractive to buyers because the starting bid is typically set
low enough to potentially provide a reasonable deal for the buyer.
Absolute
Auction
Reserve
Auction
Only the seller, the auctioneer and the Auction Specialist with
RealEstateAuctions.com knows a confidential minimum price at
which the property can sell. Buyers may find this option less
compelling because of the unknown minimum threshold their
bidding needs to reach in order to purchase the property.

What methods of auction will I be able to bid?
There are three primary ways you’ll participate in an auction:
• Live, In-Person Event
• Online-Only Event
• Live / Online Hybrid Event
Let’s see how each of these methods are defined

When most people think of “auction,” this is it. This type of event features a live
auctioneer in an open-outcry setting. Qualified bidders raise their numbered paddles
or bid cards when they wish to bid at the announced price, which is publically
acknowledged by the auctioneer. A live, in-person event is typically held at a hotel
ballroom or conference center for multi-property listings, or onsite at the subject
property for a single listing.
Auction Methods
Online-Only
Event
Perfect for a listing or listings in which a live, in-person event isn’t practical. With an
Internet connection and a computer, bidding can be done from almost anywhere, on
properties located almost anywhere, using the RealEstateAuctions.com Online Bidding
Platform.
Live,
In-Person
Event
Live / Online
Hybrid Event
A great combination that melds today’s technology with tradition to throw open the
doors for bidding from in the room, across town or across the world.

Question & Answer
Q: Aren’t auctions used only for foreclosures and
distressed properties?
A: Absolutely not. Any real estate that can be sold can be
auctioned. It simply is the fastest, most efficient and most
transparent way to buy and sell.

Question & Answer
Q: Does RealEstateAuctions.com ever offer listings
that can be purchased other than via an auction?
A: Yes, select properties are sometimes available for sale
without an auction. Use the contact information at the
conclusion of this presentation.

Question & Answer
Q: Where do I obtain information about the property in
which I am interested?
A: We provide a comprehensive BIP (Bidder Information
Package) downloadable via our website that includes many
pertinent documents about the property. In addition, we
encourage an inspection visit at an open house we will hold at
the subject property, on an announced date and time.

Question & Answer
Q: How exactly do I take part in an auction?
A: First, you must be a qualified buyer. That means able to
purchase with cash, or with financing already in place. This is
one of the main reasons auctions are fast and efficient. With
qualification already in mind, let’s look at an onsite auction
followed by an online auction.

Placing a Bid
When bidding is open, use the easy-to-navigate
tools in the Online Bidding Platform to place
your bid
Participating in an Online Auction : Process
End of Auction
At the close of auction, the top bidder will be
notified and provided with additional
information about contact signing, supplying
additional funds and completing the purchase.
Registration
Visit www.RealEstateAuctions.com and register
to bid online. Read and accept the Terms and
Conditions.
$$ Earnest Money Deposit
Follow the instructions regarding how much
earnest money is required to participate in a
given auction
Fax or Scan
Fax or scan-to-email proof of earnest money in
certified funds (typically a cashier’s check) to
the title company or escrow agent specified
Confirmation
An email will be sent confirming your bid and
alerting you if a higher bid is received. Place
another bid if you wish
1
2
4
5
3 6

Participating in an Onsite Auction : Process
Registration
Register with administrative
staff and provide earnest
money specific to the
property(s) on which you are
interested in bidding. This is
typically a cashier’s check
made out to yourself, which
will be held and returned to
you if you do not place any
“winning” bid
Arrival
Arrive at the designated
location at least 30 minutes
before auction time
Bidding
Raise the numbered card or
paddle you have been issued
to place a bid, following the
bid caller’s lead
Terms and Conditions
Agree to Terms & Conditions
Winning Bid
If designated the high bidder
by the bid caller (auctioneer) at
the end of that property
auction, proceed to the
designated area to sign
paperwork

How We Market
Here are some of the many ways you’ll find auction events we’re
holding and the listings that are offered:
• The RealEstateAuctions.com website with a dedicated,
customized listing page for each property
• Local Multiple Listing Service
• Additional real estate-focused websites
• Brochures and/or flyers
• Direct mail
• Social media
• News releases
• Company newsletter
• Newspaper ads
• TV and/or radio spots
• Billboards
• Guerilla marketing

Marketing Examples
Commercials
Billboards
Direct mail
Flyers

How Much?
How much will it cost for me to buy real estate at an
auction?
Buyer’s are charged a Buyers Premium, which is a
percentage added to the “hammer price” (when the
auctioneer’s gavel falls to indicate a sale) of a property.
Example:
$150,000 hammer price + Buyer’s Premium (4%)*
= $156,000 final sale price.
*Buyer’s Premium will vary

About US
We’re a national real estate company specializing in
auctions. We’ll sell your real estate using the fastest
and most efficient way of bringing buyers and sellers
together.
RealEstateAuctions.com was founded in 2010 by the
CEO of a successful and well-known real estate
brokerage of more than 20 years in Chicago. He began
using auctions as a marketing method and soon
decided it would become the sole purpose of the
company because of the speed, ease and transparency
auctions provide.
RealEstateAuctions.com is currently licensed in most
states, with expansion to all 50 underway. In 2015, the
company expects to expand internationally.

Thank you!
If you’re interested in learning more,
phone or email the
RealEstateAuctions.com representative
who provided this presentation, or
contact our national headquarters.
RealEstateAuctions.com
Corporate Headquarters
1765 Scott Blvd., Suite 209
Santa Clara, California
USA
Tel: (650) 584 3741 and (877) 938 7340
8:00 a.m. – 4:00 p.m. Monday – Friday
email/website
info@realestateauctions.com
www.RealEstateAuctions.com

Auction Buyers Guide_Final

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (6)

Ähnlich wie Auction Buyers Guide_Final

Ähnlich wie Auction Buyers Guide_Final (20)

Auction Buyers Guide_Final