REAL ESTATE AUCTIONS
GENERAL INFORMATION
Auction vs Ordinary MLS listing
BROKERS AND AUCTIONEERS
ABOUT AREMCOM
SELLERS ADVANTAGE:
The National Auctioneers Association reported that nationwide residential real estate auctions generated some $16 billion in 2006, a 12.5 percent jump from the year before. It’s the fastest-growing segment of the auction industry, which grossed $257.2 billion in revenue last year.
There are 14,000 competing sellers trying to sell their homes in the entire Bay Area. There is over 45,000 in Phoenix, 35,000 in Las Vegas, 55,000 in south Florida, and the list goes on across the nation. What plans do you have to differentiate your property from the competition? How will you attract qualified buyers?
As a seller in a highly competitive housing market, you are competing against tens of thousands of other sellers to attract the attention of the pool of qualified buyers. Lenders are tightening their lending practices and the 100% financing is quickly becoming a thing of the past.
Meanwhile, you have to address your own major concerns: getting fair market value and achieving a fast, efficient and hassle-free sale of your home.
AREMCOM AUCTION process allows sellers to receive true market value for their property by creating a situation in which buyers compete against each other in one place and at one time - with only one chance to buy. The endless visits to the home, offers and counter offers and negotiations are eliminated from the process.
AREMCOM AUCTION Corporation creates the ideal conditions to achieve the highest sale price by maximizing the number of qualified buyers at auction through our innovative marketing techniques. As a seller in a real estate auction you will enjoy the benefits of a contingency-free sale because at auction the seller sets the terms and conditions of the sale.
A Better and More Effective Way To Sell
In stagnant real estate markets, you must find a way to stand out from their competition because every one else trying to sell their home. AREMCOM AUCTION Corporation offers sellers a unique and effective package of marketing tools to sell their property. With our unique, accelerated marketing process, sellers no longer pay a real estate commission, saving six percent of the sale price immediately. The auction process is geared towards the primary concerns of the seller:
- Getting fair market value for your property
- Quick closing with no contingencies
- Seller maintains control of the sale
Are you frustrated with the selling process? Feel like you're out of options? Let AREMCOM AUCTION Corporation custom-tailor a marketing program just for you. Call us at (408) 945-7500 to list your home in the auction, and sell it in one day!
Marketing Exposure
Many people believe marketing is only about advertising or sales. Our company understands that true marketing involves maximizing and focusing public attention on your home. This generates a high volume of qualified buyers and accelerates the sale of your property. AREMCOM AUCTION Corporation will develop a tailored marketing plan to ensure the greatest amount of exposure for your property and the auction which includes:
- Full color Property Information Package (PIP) about the property
- Emails to all local area realtors
- Detailed exposure on our website
- Targeted direct mail programs
- Newspaper publications
- Virtual Tours
SELLERS FREQUENTLY ASKED QUESTIONS
Question #1
If I choose to sell by way of auction, am I giving it away?
Answer:
Many people believe auction means bargain. Auctioneers understand this psychology and use it to draw large crowds of people which help to ensure that the price is good for the seller. While there are indeed many good buying opportunities at an auction, the best articles in the world are sold at auction when pricing becomes difficult. The reason why people with very expensive items, and very modest items choose auction, is control. Through auction, the seller controls the time and terms of the sale, and virtually guarantees a marketplace by creating one if necessary. In strong real estate markets, you may have seen properties "listed for one price" and "sold above listing price". What happens in these situations is an auction, except that rather than being open by announcements as such to the entire marketplace, they are usually conducted between the two or three buyers that have found the listing at that time, and they make offers not knowing what the other offers are and how much they have to give to beat the other. In these cases, we think of them as listings, but really a limited auction is taking place, and it is acceptable to the seller or they would not be selling.
Question #2
Why would I sell my home at auction?
Answer:
The correct question should be why I should sell my property any other way! By auctioning, you are accelerating the sale of your property by generating additional consumer interest and activity. Advertising a property for auction creates a sense of urgency, bringing all interested parties together on one specified day. An auction provides multiple bidders competing to buy, bringing higher revenues than negotiating with a single buyer. Non-contingent contracts and 30-day settlements are required of the buyer of your property. This means a quick transaction for you.
Question #3
I am not in financial trouble, and I am concerned about what people may perceive if I should auction my property. Can you give me any insight on this?
Answer:
Unfortunately, reality is to often blemish by perceptions that are put together over a period of time and circumstances. Perceptions that are based on emotions or feelings and not on real facts. These perceptions, or paradigms, have inhibited the auction industry in some parts of the country over the years.
Today again, auctions are part of the American way of life in many areas of North America. They fill the buying and selling needs of thousands of people. Many products still have their origin on the auction block and no one, regardless of financial status or heritage, can escape the magic of auctions in the buying and selling process.
Savvy sellers of real estate chooses the cost-effective, accelerated method of selling a development rather than laboring for months or years to sell the units of the development one by one. This accelerated sale allows the developer to eliminate virtually all long-term carrying costs. It is truly a win-win situation.
High-end residential properties are one of the fastest growing components of real estate auctions. These non-distressed, non-repossessed properties are in high demand and create a seller's market nationally. Savvy owners are choosing auctions over conventional method to extract the true market values for their premium residences.
Question #4
What advantages does an auction have?
Answer:
There are 5 main advantages to a seller by having AREMCOM sell your property for you at auction:
- Sell your property "as-is" for cash
- Pay no commission or settlement cost
- No fix-up costs or feasibility studies
- No financing contingencies
- Settle for case in 30-45 days
Buyers come prepared to buy. "Lookers" are eliminated because most often bidders must qualify through a deposit of a certified or cashier's check. Auction brings interested buyers to a point of decision. Buyers feel that if all the properties are sold before the auction ends it represents their last chance to purchase a desired property. Sellers get maximum exposure for their properties. The auction marketing strategy differs from conventional advertising. It is more concentrated, therefore more intense and visible. High carrying costs are avoided. Through auctions, the seller is in control and knows that if properly priced, his property will sell on a certain date, which is usually within 30-60 days of signing the service contract. By selling quickly, the seller is able to avoid high carrying costs such as insurance, real estate taxes, security and maintenance and is also able to benefit from the use of the monies to reinvest in other real estate or investment opportunities elsewhere.
Other benefits are:
- Offers the seller another option.
- Creates competition among buyers - auction price can exceed the price of a negotiated sale. An auction generates excitement and heightens buyer interest.
- Accelerates sales - the property can sometimes be sold within six weeks of listing.
- Auction is a true market forum - the highest buyer pays the lowest price a seller will accept.
- A seller knows exactly when the property will sell.
- A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction (depending on auction type), and actively participates in the sale process.
- Auction reduces the time the property is on the market.
- Auction eliminates numerous and unscheduled showings.
- Auction takes the seller out of the negotiation process.
- Auction is an aggressive marketing program that increases potential interest in and awareness of a property.
- Seller is able to obtain liquidity.
Question #5
Can I get a good price at auction because I am concerned that the amount I will realize from the auction might not be enough to cover my existing mortgage
Answer:
AREMCOM’S method of selling is focused on accelerating the sale of a property by determining what the market is willing to pay for it. The buyer is the one who is spending the money and therefore controls the price. In both cases you have the right to refuse any offer. The fact that The decision to auction or not to auction should depend on criteria other than getting the most money. The fact that you are selling at auction does not change the market value of your property. In another word, if the market value is at a level below your existing mortgage, then that is the price that you have to work with regardless of whether you use the traditional
method or the auction method to sell your property
Question #6
What is more important than getting the most money?
Answer:
Getting the most money is important, to you and to us. But you can't sell a property through a traditional listing and the auction process at the same time, so you should look at other information to help drive the choice. Information such as "is the property currently being gainfully used by you at this time?" If it is, you may want to get a certain price or otherwise remain in the property. If not, then every day the property remains unsold is a net cost against your bottom line. Costs such as heat, water, taxes, insurance, maintenance, security, depreciation, and loss of return on the money invested otherwise are ongoing and mean that the longer it takes to sell, the less you ultimately put in your pocket. Another reason that you may choose auction is that you are selling the property for an estate or a friend, and you do not live close to where the property is. You are concerned about having the property on the market for an indefinite period of time while it sits vacant. An auction will give you firm control of the time line here and ensure you are able to sell it and move on. In these situations the risk of listing the property is higher than the risk of auction because you give up more in a listing.
Question #7
Do I have any protection from what I feel may be too low of a price?
Answer:
At our auctions we offer to do business with or without reserve. If you wish to sell without, then you must accept the best offer generated. Most of our properties however are sold with the seller having the right to accept or reject any offer, also known as “subject to seller confirmation.” That is your protection against an unacceptable price. In an absolute auction, the property sells to the highest bidder regardless of price. This type auction tends to get the best results, because it attracts the largest number of bidders. This type of auction is sometimes referred to as an “unreserved” auction.
Question #8
How often do properties sell for less than appraised value?
Answer:
This is a difficult question to answer because it suggests that listed properties typically bring their appraised price which is not true. Appraisals, while helpful in making decisions are an imperfect science. They are prediction of what a property should bring based on the best available comparable sales in the marketplace. If there are an abundance of sales of very similar properties, then the appraisal is probably an excellent prediction of price. If there are few sales of similar properties, then the appraisal may be very high or very low compared to actual sale price. This holds true in both traditionally listed properties, and for auction properties. We have sold properties for substantially more than appraisal, and for substantially less. In all cases, the seller agreed to the price, and the appraisals were in error by the amount they differed from the actual sale price.
Question #9
What are the advantages of an AREMCOM Auction as opposed to an ordinary listing?
Answer:
The advantages of listing a property with AREMCOM vs. a traditional agent could be many. Auctions allow the seller to control the time it takes to sell, and the terms of the sale. This means that if you dictate cash on closing with no conditions, then that is the way all competitive offers will be made. Most auctions can take place within 45 days of the date of contact with the auction company.
Question #10
I have property to sell, what expenses am I responsible for?
Answer:
Real Estate auction holds many choices. These include selling live on site, live in a ballroom or office location, online or a combination of both. Auctions can take place with reserve, or without reserve. Most auction processes require the seller to pay for the cost of marketing the product while the buyer is responsible for the commission. Most real estate auctions can take place within 45 days of contact with our firm, with closing following typically in 30 days. Some properties can be sold faster, and some large properties may require a longer marketing period. Our firm offers all of these services plus traditional real estate listing services. We specialize in gaining a clear understanding of the customers’ needs, and then making a plan that best utilizes available technologies to best meet your goals.
Question #11
Answer:
Often times we find that the price is not the reason why a property doesn't sell. The primary cause often is it has not been marketed effectively and, therefore, the property has experienced insufficient exposure. In other words, it has become "stale''. The auction process is the best way to revive interest in the property and obtain offers at current market value.
