AUCTION FAQS
John is a well-seasoned Principal Auctioneer. He has experience selling a wide range of properties at auction. He works directly with leaders in the Auction industry to achieve his client’s goals. No project is too big or too small!
What Is a Real Estate Auction?
The auction selling process is different from a traditional method. Instead of showing the property to interested parties and waiting for them to make an offer, an auction introduces a property to a group of prospective buyers all at once. Buyers then bid on the property once the auction starts. The person or entity that puts in the highest bid by the end of the auction “wins” the property. Some auctioned properties have a minimum sale price (reserve) that buyers must meet.
What are the Pros of Selling Property at an Auction?
1) You set the timeline.
When you list a property on the market, there’s no telling how long it will take for it to sell. If it sits there for a while, you may be forced to lower the price. With an auction, you choose the event’s date. Anyone interested in buying your property knows they will have to participate in the auction to bid on the property.
2) They attract highly motivated buyers.
Auctioning a property typically heightens demand and buyer interest. Those who attend auctions are usually serious buyers eager to make competitive bids. While bidding wars are possible through a traditional private sale, an intense auction environment tends to fuel heightened competition by design.
3) Showing the property is not always required.
Preparing a property for a private sale can be hard work. You may need to do some remodeling to make it look more attractive or hire a staging company. Depending on the condition, costly repairs may be needed to make it more appealing to buyers.
Conversely, people who bid on properties at an auction realize that the property is for sale “as-is” and are given extensive property information upfront. Set times to view the property before the auction are also usually available. You don’t have to consistently keep the property show-ready or schedule showings through an agent.
What are the Cons of Selling at Auction?
1) Your property may not sell.
No matter how much you prepare, setting up an auction is no guarantee that your property will sell. It is a rare event, but you may have no one show up or submit a bid. Of course, there’s always the option of selling your property using another method.
2) The highest bid may not be enough.
Although buyers can get into a bidding war and drive up the price, the opposite could also be true. Interest might be low, resulting in the highest bid falling below the threshold of what you wanted to accept. Depending on how your sale is structured, you can reject the highest bid and hold another auction or sell your property the traditional way.
How are Auctions Conducted?
1) Live Auctions
During a live auction, the Auctioneer (Bid Caller) solicits bids from the audience using a verbal chant, while “Ring Men” work the audience and seek out bids. All the participants are physically located at the selling property and either place their bids verbally or with a gesture.
2) Online Auctions
An online auction is an auction held over the internet and accessed by internet connected devices. A core benefit of an online auction is the removal of the physical limitations of a traditional auction that requires attendees to be geographically located together which greatly reduces audience reach.
Online auctions offer advantages to users that traditional auction formats do not offer such as the use of automated bids, using search engines to find items, and the ability for users to view items by categories. Along with these benefits, online auctions have greatly increased the variety of goods and services that can be bought and sold in an auction format.
3) Simulcast
Want to experience the fast-paced, exciting atmosphere of a live auction, but can’t attend in person? It’s no problem with a simulcast auction! Simulcast auctions bring live video, live audio, and enhanced bidding capabilities right to your computer or smartphone. The live auction presentation is combined with the convenience of online bidding to bring the best of both worlds to the widest variety of buyers.
What are the Differences between Residential and Land/Farm Auctions?
Residential
Residential Auctions involve the sale of a private residence. These are typically homes where the seller resides or an investment property.
Land / Farms
Selling land requires an Auctioneer who is knowledgeable on how to maximize the sales price for land. Sometimes this requires subdividing the land into individual tracts. This process involves numerous parties and organizations, and a great deal of teamwork. The most common parties are land surveyors and soil scientists.
How can an Auction help My Estate?
As both an attorney and auctioneer, John is uniquely situated to understand and respond to a client’s unique needs or concerns as they relate to settling an estate. John understands the probate process is a sensitive and difficult time for families who are grieving the loss of a loved one.
The service John provides to these families will help to relieve the overwhelming burdens associated with trying to decide how or what to do with the decedent’s voluminous personal property and real estate. Once engaged to liquidate an estate, John coordinates the removal of all the personal property from a house, catalogues it, and then strives to obtain the highest possible purchase price. This eliminates any work on behalf of his clients so they can focus on other, more important concerns.
How can an Auction help during the Foreclosure / Pre-foreclosure / Reverse Mortgage Process?
Are you facing Pre-Foreclosure or Foreclosure? Do you have a “Due and Payable” Reverse Mortgage? John can help you retain as much equity in your home as possible and avoid Foreclosure. YOU DO NOT WANT A FORECLOSURE AUCTION. Going through a Foreclosure can have disastrous and long-lasting financial consequences. THERE IS LIMITED TIME TO ACT.
How can John help me during Pre-Foreclosure or Foreclosure?
John markets your property to an extensive network of buyers who will compete to buy your home “as is” for cash and close in as little as one week.
When buyers compete to buy your home you can be confident that you are getting the most money for your home.
You want to retain as much money from your home when it’s sold.
What is the Timeline for Pre-Foreclosure and Foreclosure?
Two Laws, Federal and State (Non-Judicial Foreclosure)
Under Federal Regulation X, A mortgage servicer can’t foreclose until more than 120 days have passed since you first fell behind on your mortgage payments.
Under TN State Statute your mortgage servicer can then sell your home in as little as approximately 45 days at a public auction.
Why should I hire John to Sell my home vs. just selling at a Foreclosure Auction?
Marketing makes a difference. Your property is marketed to a much broader audience thereby increasing the competition to buy your home.
The Foreclosure Auctioneer will likely charge additional fees and a hefty sales commission that reduce the amount of money you receive.
Increase the Sales Price. Traditionally, homes sold by private companies sell for substantially more than at a public foreclosure auction.
Bottom Line: You do not want a deficiency judgement!
I want to sell my home before Foreclosure. What do I do next?
Call John ASAP to discuss your options. Time is of the essence.
John will compile data on your home and develop a unique course of action on how to sell your home for the most money and avoid foreclosure.
John will meet with you at your home to discuss and finalize his plan and address any of your concerns.
Why do I want to avoid Foreclosure?
First, you’ll avoid having a foreclosure on your credit report. Most foreclosures will stay on a credit report for seven years and may negatively impact your ability to get a loan or secure housing moving forward
Second, if you decide to buy another home, you can do so much sooner.
Last, it may make it easier to sleep at night. Selling your home gives you a proactive way to do something about your situation instead of remaining at the mercy of your lender during a foreclosure.
Should I Auction my Commercial Real Estate?
Commercial property owners choose to work with John due to the complexity of commercial real estate transactions. The paperwork, intricacies, and time needed to close a deal often require an experienced Realtor’s assistance.
Working with John has many advantages, beyond just closing the deal and completing paperwork.
Commercial real estate is property used exclusively for business-related purposes or to provide a workspace rather than a living space, which would instead constitute residential real estate. Most often, commercial real estate is leased to tenants to conduct income-generating activities. This broad category of real estate can include everything from a single storefront to a huge shopping center.
Commercial real estate comes in a variety of forms. It can be anything from an office building to a residential duplex, or even a restaurant or warehouse. Individuals, companies, and corporate interests can make money from commercial real estate by leasing it out or holding it and reselling it.
Commercial real estate includes several categories, such as retailers of all kinds: office space, hotels and resorts, strip malls, restaurants, and healthcare facilities.
Selling Commercial Real Estate takes finesse and is much different than selling Residential Real Estate. Zoning matters! Let John guide you through the process of selling your commercial real estate as well as your intangible Business Enterprise. John’s knowledge of how to maximize your sales price will save you time, money, and frustration.