The
Three Basic Methods of Auctioning
There are three methods of selling your Palm Beach County home at auction:
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Absolute
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Suggested Opening Bid
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Reserve.
In an Absolute Auction, the property is advertised as selling
to the highest bidder. The word “absolute” generates much greater interest
among potential buyers resulting in greater attendance at the auction and in
the property realizing its greatest potential. “Fear of loss” is a great
motivator, if a buyer has an interest in the property, they will not miss
the opportunity for any reason. Many sophisticated buyers will only do their
due diligence if they are certain the property will be sold.
In a Reserve Auction, the Seller establishes a confidential
reserve price and has the right to accept or decline the highest bid if it
falls below the established reserve. If the reserve method is chosen, it is
imperative that the reserve be realistic. This allows the bidding to start
at a price that will capture the interest of all potential buyers and will
create excitement and momentum in the bidding, but perhaps not as strong as
absolute.
The Suggested Opening Bid Auction is a variation of a reserve
auction. The suggested opening bid that is advertised must be a number that
grabs a potential buyer’s ATTENTION. Typically, this number should be well
below the market value or last exposed price. The Suggested Opening Bid
Auction affords the seller the right to accept or decline the highest bid if
the highest bid is below the established reserve.
Security
Bidders will be asked to furnish cash, cashier’s check, or personal check
and sign a bidder’s contract agreeing to the terms of the auction prior to
auction commencement.
Cooperation
From the moment the auction marketing process begins, we designate key
personnel to satisfy your communications, support and reporting needs.
Creativity
Frank Verna’s highly creative in-house marketing team will design and
produce dynamic and sophisticated advertising materials to make your
property stand out to potential buyers. Web page(s), designed specifically
to promote the sale of your property, will be linked via several auction
posting websites deemed appropriate for the auctioning of your property.
These website postings will create world wide exposure for your property and
your property’s specific webpage(s) will insure that every potential buyer
will have quick and easy access to the details of your property. Your
property will have worldwide exposure on these sites and more as deemed
necessary depending on the type of auction and property you are auctioning:
AUCTION SELLER BENEFITS
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No commission paid by seller.
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Limited showings/open houses of your
property prior to auction.
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Non-contingent offers on your property.
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Forced Market Reaction due to the
predetermined sale date creates a sense of urgency and requires a
decision.
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Target Marketing and concentrated
advertising program, for a brief period of time magnifies the benefits
and maximizes the return.
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The advertising will spotlight the
properties and the absence of a price will stimulate potential buyers to
consider the property.
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Brings all prospective buyers together at
one time and one place to compete for the property being sold.
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The sellers will receive, through open
competitive bidding, the highest offers available in the market.
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Allows us to offer the property in a
manner that will yield the highest returns.
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Turns a negotiation into competitive
bidding.
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Establishes True Market Value.
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Seller-controlled terms of the
transaction.
Considering the time value of money and ongoing interest costs accelerated
auction marketing yields a potential higher price than might be obtained at
a later date in the future.
The Sellers and all creditors can confidently plan and make commitments
knowing the property will be sold for the best price available on a specific
date.
Auctions, many times, yield a higher selling price than negotiated sales and
set no limits on what the property might bring.
AUCTION BUYER INFORMATION
What is a Buyer's Premium?
The Buyer's Premium is a charge to the Buyer that helps defray, from the
Seller, some of the expenses associated with conducting an auction.
How Does it Work?
The Buyer's Premium is added to the winning bid to determine the total
contract selling price.
Who Benefits from the Use of the Buyer's
Premium?
The use of a Buyer's Premium benefits Buyers and the Sellers alike. The
Buyer benefits because if not for the Buyer's Premium, the Seller would not
have offered the property for sale in an open and competitive bidding
environment. The Seller benefits because they are relieved from the
obligation of paying commissions as a result of the Buyer's Premium. Relief
from such commissions, in turn, allows the Seller to focus their resources
on supporting the expense associated with the marketing of the property to
be auctioned.
Is the Buyer's Premium Method an Acceptable
Practice?
The Buyer's Premium has been used in the auction industry for over
twenty-five years and is currently being used by many national companies who
are concerned with their clients' best interests.
The use of this method is only one of several terms and conditions that
govern an auction. As with all Terms and Conditions, the Buyers are aware of
the Buyer's Premium Method before the auction commences.
We believe in the Buyer's Premium Method. Our years of experience and
knowledge have benefited us in utilizing the effectiveness of the Buyer's
Premium. Statistics show the Seller nets more when the Buyer's Premium is
utilized.
