About Auctions

The one and only, unlimited method of marketing, that the buyer gets actively involved both physically and mentally is auctions. Many real estate marketers now agree that the auction method is actually superior in many ways to listings (negotiated sales) and should be the first, not last, option for marketing real estate. Figures released by the National Association of Realtors indicates that over 30% of real estate is now sold by the auction method of marketing.

Traditionally, farm lands, livestock and agricultural products were the focus of most auctions. In today's financial arena, where time value of money is most prevalent, auctions include personal properties and all types of assets including residential, commercial and industrial properties. It's hard to imagine anything that can't be sold or purchased at auction today.

The auction method features predetermined timeframes for marketing and holding the event. This not only keeps the seller and auctioneer on target of the marketing process, but gives the consumer a roadmap for what's going to happen and when.

Other unique features include the choice the seller can make regarding the type of outcome desired. This involves whether the auction will be "reserve" versus "absolute", as well as how much money he/she wants to place in advertising. With the introduction of the "buyer's premium", commissions structures now vary.

Public auctions are not a cure-all for all properties and situations. Auctions work best in a strong seller's market, a unique, one-of-a-kind property, or a high-traffic commercial site.

Sellers Benefits

Converting real property, personal possessions or inventory to cash quickly is a major benefit as well as knowing they will receive a fair market value offer.

Before contractual agreements occur, the auctioneer and seller meet to determine the viability of an auction based on the sellers desires and expectations, along with services to be rendered by the auctioneer.

• Target marketing of property to efficiently reach all potential buyers
• Predetermined sales date eliminates buyer procrastination
• Seller-controlled terms turns negotiations in sellers favor
• Publicly conducted transactions improve chances of realizing true market value
• Rapid closing on the property means client will receive money quicker
• Speed of closing reduces holding cost
• Client can sell in both weak and strong markets
• Opportunity to control advertising budget
• Opportunity to divide land into multiple parcels to maximize value

Buyers Benefits

Buyers actually determine the final price and market value no matter which method of marketing is chosen.

Potential buyer has the availability of acquiring a "due diligence" packet supplied by the auction firm. This packet contains some information on the property for the buyer to further investigate, in order to make a more informed decision to purchase.

• Buyer is competing in an open forum with other buyers, all on the same playing field
• Buyer determines the value
• Buyer will not overpay, pay only what he/she is willing to give
• Most, if not all, inspections have been completed by seller
• Long negotiation period elminated
• Knowing immediately whether the offer is accepted
• Rapid closing, usually 30-45 dyas from auction event

Critical Points to Consider

Selecting the right auction firm and auctioneer is vital to the success of the auction method of marketing and a professionally orchestrated auction event.

• Form educational training in the field of real estate marketing
• Formal educational training in the field of auctioneering
• Hands on experience in conducting auctions, specific to type of property
• Cutting edge computer technology and skills
• Membership in state and national affiliations
• Realistic Seller expectations
• Desirability/demand of property
• Property preparation, both on and off site
• Provide all possible information concerning property
• An aggressive marketing/advertising campaign

Summary

Our Country Auction and Realty, Inc. and Mac Taylor, believes in the "accelerated" real estate marketing process, commonly referred to as auction, as the most effective and efficient method of selling "most" real estate assets. Just placing a property up for sale without a marketing plan is "waiting and wishing for something to happen."

Our Country Auction & Realty, Inc. prepares a comprehensive marketing strategy and timeline for each property. It's a combination of hard work, market knowledge, experience and attention to details that makes an auction a success. A successful auction is preceded by the effectiveness of the marketing campaign.

Even though the auction firm represents the seller only (no buyer representation), all efforts are made to give the prospective buyer any and all information pertinent to the property in order to and encourage the buyer to perform their own due diligence. This auction firm believes that an informed buyer is a willing purchaser.

The closing process begins at the signing of the contract between auction firm and seller/client, and ends when the seller deposits her/her monies. A good "rule of thumb" is that the more desirable and in demand a property is, the preferred method of marketing is the "Auction Method".