About Auctions:
> Why Auction?
> Reasons For Using Auctions
> Types of Auctions
An auction is the process of buying and selling things by offering them up for bid, taking bids, and then selling the item to the highest bidder. An auction is a technique for determining the value of a commodity that has an undetermined price. Auctions can be with reserve or minimum, or without minimums, confirmation, or absolute or no reserve. There is some lowest amount of bid or reserve price in reserve auctions. If the bidding does not reach the minimum sale is impossible. The sale is guaranteed in both absolute and no reserve auctions, with only the price left that is to be determined.
Auctions are publicly seen in various contexts and almost all the things can be sold at auction. Some typical auction arenas include the following: luxury real estate, the sale of all types of real property including residential and commercial real estate, farms, vacant lots and land for the sale.
Auction catalogs are printed regularly and are also disseminated before auctions. The catalogs may have very elaborate works, with significant details about the items being auctioned. Auctioneers are trained in the legal and practical aspects of conducting auctions. Auctioneers are also licensed as well as bonded.
Why Auction?Sellers choose the benefit of accelerated marketing when they sell their properties by auction. They want to sell in a practical and timely manner. The majority of sellers want to minimize the numerous holding costs to maintain the properties such as real estate taxes, insurance, association dues, mortgages and such. Buyer should be able to obtain these properties at a very reasonable price while sellers will be able to relieve their tremendous burden of carrying costs. Usually, the contract will set closing within 30 days of the auction. While a buyer can get financing on properties after the auction, auction contracts are not contingent on the ability to get financing. Many buyers get pre-qualified for a mortgage if they can not close without financing, to speed the process alone.
Reasons For Using Auctions
Fast & Effective:
Traditionally, the sale of real estate involves a prolonged marketing period that usually costs the seller months of taxes, utilities, insurance, maintenance, interest and hours of negotiation and worry. These costs often are priced into the "value" of real estate, benefitting neither the Buyer nor Seller but actually draining everyone financially and emotionally.
Seller is in Control:
By marketing real estate at auction, it insures an efficient and timely sale, and increasing the NET value realized by the seller. The Terms and Conditions can be specified by the Seller to control everything from closing date to warranties and guarantees.
Auctions are Adaptable:
Virtually every type of asset imaginable has been sold at auctions, underscoring the adaptability of this century-old marketing method. As a seller, you receive a rapid disposition of your assets on a cash contract basis.
More than a Fast Talker:
EXIT Florida Auctions and its designated auctioneer is a marketingspecialist firm with expertise in the auction method for disposition of real-estate. We must have a working knowledge of the value of items being offered and must know how to advertise to attract people most interested in your property. We do all of this very well for you, the seller.
Planning for Success:
Our designated auctioneers are Well-trained auctioneers using established procedures to maximize receipts from auctions. First they meet with you to see what your expectations are and appraise your assets. Then, they present a proposal detailing the auction date, time, and location for your sale.
A Complete Service:
EXIT Florida Auctions offers their clients a complete auction service, including experienced auction support, assistants, and administrative staff. The EXIT Florida Auction team can take on the task of preparing your assets for sale.
Protecting the Seller:
EXIT Florida Auction wants their sellers to be satisfied with the final results. EXIT Florida Auction will work diligently with the seller and assist the seller in determining what their property will ring at auction. Sellers have the option to sell their properties subject to confirmation. However, it is widely proven that an absolute auction brings more bidders to the floor hence more competition.
Effective, Affordable Promotion:
A well-planned, promotional campaign is essential for the success of your auction. Newspaper, direct mail, radio, Internet, and/or TV may be necessary to make your auction a success. EXIT Florida Auction will do whatever it takes to ensure it is a success for you.
Types of Auctions
ABSOLUTE AUCTION:
Properties offered at Absolute Auction will be sold to the highest bidder, regardless of price, with no minimums and no reserves!
RESERVE AUCTION:
Properties that are sold subject to a reserve are offered with the seller having a minimum acceptable bid set in advance. The auctioneer will discuss and negotiate a “release” price with the seller before the Auction Marketing Contract is signed. In this case, the high bid will be presented to the seller (on a written “auction” contract form). The seller has the right to accept or reject the highest bid without penalty if it is below the reserve. If the brochure does not reflect "Absolute" in the property description, then it will be sold subject to a reserve. In reality, the Seller needs to be prepared to release the property at less than today's list price. In this type of auction, sellers are still definitely motivated to sell and are just setting a safety net under the auction of the property.
