Once a popular selling method in California, non-distressed ResidentialAuctions are showing up here in Florida. The recent Auction Sale of two Golden Beach mansions sold in tandem set the local real estate market talking. The sellers decided to auction their properties at an Absolute Auction, which means the properties would be sold to the highest bidder regardless of price. The two properties sold for $12.4 million…the sale was fast, fair and satisfying to all concerned.
If you are interested in selling your real estate at auction, you will need to work with an auctioneer who is a licensed Florida real estate broker. Based on your situation, there are various types of Auctions, the most popular are Absolute, Reserve, and Minimum Bid. Also, there are both Live and Online Auctions as well a hybrid Live and Remote, which is used to facilitate bidders from around the world. Each method produces results that compare with, and in many cases, exceed traditional brokerage methods. The properties are sold AS-IS with no contingencies, and can include all furnishings if desired.
With an Auction, you set the date your property will sell. An Auction generates excitement by sending a clear message that you, the seller, are serious and highly motivated. Remember, motivated doesn’t mean desperate. It means that you want to sell and move on to the next chapter. We all know the feeling of relief when your property goes into contract…and the pressure and anxiety when your home lingers on the market. Every passing month you are carrying the property, and if you have already bought a new home, you are carrying two..Ouch!
Auctions bring Buyers to the point of decision quickly. In preparation for the Auction, the Bidders must bring a Cashier’s Check in order to bid; and the winning Bidder must make a deposit of 10% of the contract price at the signing of the contract. This significant earnest money deposit means the property is far more likely to close. Another major difference between an auction and a traditional brokerage sale is there is no inspection period after the “Purchase and Sale agreement is signed by the Buyer and Seller. Prospective Bidders conduct their due diligence inspections before the auction. So the day of the auction, everybody is set and ready to deal. Live “On-Site” Auctions create spirited bidding, producing higher sale prices. TheAuction will quickly bring the true market price. (The True Market price is the price a buyer is willing to pay for the property on that day.)
As you can see, there are pro’s and con’s to selling your home at Auction. Built in to the Auction experience is the Buyer’s expectation that they will get something at a low price. This may or may not happen. Promoting and advertising the Auction through Target Marketing increases the visibility of the property. A larger audience sees the property and more potential bidders attend the Auction, on-site or on-line.
For the Seller, the speed of the Auction is a major advantage. The home will sell very quickly and the sale will be completed more rapidly than selling through the traditional methods. The waiting and worrying come to a quick conclusion. If you want to or need to sell in a set period of time, an auction may be your best option.
Ray Princiotta is a licensed Florida real estate broker. If you have any questions, contact me – ray@rayonrealestate.com.
