Real Estate

Individuals, Banks, Bankruptcy Trustees, Realtors®, Attorneys and many others benefit by trusting their real property to the Auction Method of Marketing. An auction creates an environment where all qualified and interested buyers gather on a particular date to bid competitively to buy your real estate. The successful bidder gives a sizable non-refundable deposit and enters into a purchase agreement without contingencies on financing or inspections, so you’ll be able to make plans based on an on-time closing of your property, typically within 30 days!

Strange Auction Services offers live on site auctions as well as online bidding. If you want to sell your property quickly and easily at the highest possible price, then the auction method of marketing is a smart decision……not a last resort. If you are considering Strange Auction Services for selling your property, call us at 727-501-2075 or e-mail us by clicking HERE. We will discuss your property, your needs and conduct a preliminary assessment of your property.

There are 3 types of auctions:

1. Absolute Auction (or auction without reserve)

  •  The property is sold to the highest bidder, regardless of the price.
  • Since a sale is guaranteed, buyer excitement and participation are heightened.
  • Generates maximum response from the market place.
  • Many sellers, including financial institutions and government agencies have begun to use this method more frequently.

2. Minimum Bid Auction

  • The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction.
  • Reduced risk for seller as the sales price must be above a minimum acceptable level.
  • Buyers know they will be able to buy at or above the minimum.
  • The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price, and therefore it must be low enough to act as an inducement rather than a hindrance.

3. Reserve Auction (an auction subject to Confirmation)

  • In this scenario, the high bid is reduced, in effect to an offer not a sale.
  • A minimum bid is not published, and the seller reserves the right to accept or reject the highest bid within a specified time — anywhere from immediately following the auction up to 72 hours after the auction concludes.
  • Sellers predetermine the price at which the property will be sold and are not obligated to confirm a sale other than at a price that is entirely acceptable to them.
  • The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder.

BENEFITS TO THE SELLER:

  • Buyers come prepared to buy
  • Quick disposal reduces long-term carrying costs, including taxes & maintenance
  • Assurance that property will be sold at true market value
  • Exposes the property to a large number of pre-qualified prospects
  • Accelerates the sale
  • Creates competition among buyers—auction price can exceed the price of a negotiated sale
  • Requires potential buyers to pre-qualify for financing
  • The seller knows exactly when the property will sell
  • Eliminates numerous and unscheduled showings
  • Takes the seller out of the negotiation process
  • Ensures an aggressive marketing program that increases interest and visibility

BENEFITS TO THE BUYER:

  • Smart investments are made as properties are usually purchased at fair market value through competitive bidding
  • The buyer knows the seller is committed to sell
  • In multi-property auctions the buyer sees many offerings in the same place at the same time
  • Buyers determine the purchase price
  • Auctions eliminate long negotiation periods
  • Auctions reduce time to purchase property
  • Purchasing and closing dates are known
  • Buyers know they are competing fairly and on the same terms as all other buyers
  • Buyers receive comprehensive information on property via due diligence packet

BENEFITS TO THE REALTOR®:

  • Generates a list of ready, qualified buyers
  • Offers clients and customers new selling and purchasing options
  • Increases revenue and market share
  • Develops your own market niche
  • Assurance that property will be sold at true market value
  • Property is sold within a relatively short period of time
  • Exposes the property to many potential purchasers
  • Auctions bring people in to look at all your listings, not just the auction listing
  • Successful auctions result in referrals and return business
  • Agents can earn commissions as referring agent/broker, cooperating agent/broker, or as the listing agent/broker