Sellers FAQ

What are the top reasons to sell my property using the auction method?

  • Exposes the property to a large number of pre-qualified prospects.
  • Leverages seller’s advertising investment-10 to 20 times in a multi-property event.
  • 40,000+ compiled regional database of prospects with a propensity to buy at public auction.
  • 30-45 day unconditional all cash closing.
  • Target marketing-direct mail, brochures, display ads, proactive telemarketing, site signage.
  • Instant access to property information on www.svnauctions.com plus the local auction team’s website
  • Quick sale reduces carrying costs, including taxes and maintenance.
  • Accelerates the sale. The seller knows exactly when the property will sell.
  • Properties sold “as is, where is”.
  • Creates urgency to buy and competition among informed buyers.
  • Auction price can exceed the price of a negotiated sale.
  • Requires potential buyers to pre-qualify for financing.
  • All due diligence, inspections and testing performed prior to sale.
  • The seller sets terms and conditions of the sale.
  • Ensures an aggressive marketing program that increases interest and visibility.
  • Assurance that property will be sold at true market value.

Who can benefit from an auction?

ESTATES  – quick and easy, turnkey estate settlement. Real estate, antiques, furniture, collectibles and other assets can be sold in one day relieving the family of these tasks.

REALTORS and ATTORNEYS – representing clients with properties that aren’t selling, clients who need to name an exact date of sale, or court ordered sales.

DEVELOPERS – with properties remaining. It might be time to “Cash-Out” and move on to new projects. Our company has successfully sold condominium projects and subdivisions for many developers.

BANKS (REO’S) – Vacant REO properties can be very costly if not sold quickly. Statistics show that it costs an owner approximately 2% of a property’s value each month to maintain these assets. SVN Auction Services has represented regional and national banks throughout the United States utilizing proven auction marketing techniques.

COMPANIES QUITTING BUSINESS – who want to sell their real estate, equipment, and inventory. They want a clean “Cash-in-a-day” sale with no collection problems.

TRUSTEES – who want to eliminate any suspicions of impropriety, stop holding costs and be assured of the highest selling price.

GOVERNMENT AGENCIES – our experience includes the FDIC, U.S. Marshals Service, and the U.S. Small Business Administration.

HOMEOWNERS – wanting to sell one home or an investment property in a “date certain sale” fashion.

Can I set a minimum on my property?

Yes. We will analyze your property and consult with you on a minimum or reserve price prior to the sale. This price is not advertised or disclosed to the bidders.

What does absolute or unreserved auction mean?

The term “absolute” or unreserved means the property will sell to the highest bidder regardless of price. It is important to note the many more bidders will attend an absolute sale and typically bid a higher price.

What does absolute or unreserved auction mean?

The term “absolute” or unreserved means the property will sell to the highest bidder regardless of price. It is important to note the many more bidders will attend an absolute sale and typically bid a higher price.

What advertising and promotion is used in marketing?

Effective advertising and promotion is absolutely the key to a successful auction. The “laser focused” advertising will focus the attention of the entire area on your property. We target the market utilizing direct mail brochures, newspaper display ads, trade journals, periodicals, radio and if appropriate even television advertising. In addition, we notify top buyers and real estate agents by broadcast e-mail. Ad campaigns are expanded regionally;  when warranted nationally or even internationally depending on the property. This method “smokes out” prospects who would never present themselves under the conventional method. Strong auction sales don’t just happen – they are orchestrated. Our expertise and know how in advertising assures you of getting the highest dollar value for your property.

How am I protected if the final bid is not close to the price I am looking for?

If the final price is below the agreed upon “reserve” or “minimum” then the seller can choose to reject or accept the bid or we can try to negotiate a sale with the winning bidder. We will also continue to market the property, with the listing advisor’s assistance, to other prospects that were interested in the auction.

Isn’t the auction method usually associated with a distressed sale?

Absolutely Not! In recent years the popularity of competitive bidding has exploded to an estimated $28 billion in annual sales. Fortune 500 companies including McDonald’s, K-Mart, Chevron and Exxon utilize competitive bidding because they know it is the best way to achieve the highest price in the shortest time. Estimates show that over 30% of all real estate in the U.S. will be sold using accelerated marketing by the turn of the century. Government agencies such as the RTC, FDIC, U.S. Customs, U.S. Marshals Service and the SBA all use the auction method.

Are the terms different from a standard real estate transaction?

Yes.  Contracts typically are an unconditional all cash contract that calls for a non-refundable deposit and a 45 day closing.  All improved property is sold in “As is, Where is” condition. This relieves you the seller of any and all liabilities concerning condition.  Under our system, the seller’s closing costs are kept to a minimum.

Who are the Buyers at these sales?

Our sales attract a good mix of investors and end-users. Sometimes the next door neighbor who has “thought about it” for year . . . but absolutely won’t act! “Maybe I’ll wait till the price comes down.” Our method of sale creates the urgency to buy or miss a golden opportunity. The buyer can no longer “think it over”.  They have to act now!  Our sales usually attract prospects from hundreds and even thousands of miles away. These buyers may not be the final buyers…but their bidding forces the local buyer to pay market price.  Competitive bidding creates excitement! It’s contagious! People like to buy this way. They get caught up in the bidding and enjoy it!

Once you have accepted my property to be sold, is there anything I can do to affect the selling price?

Offer attractive terms, like short term financing. Make sure we have every piece of information for the prospects to review BEFORE the sale.  Clean it up . . . Plus many other “key” issues we’ll advise you of on an individual basis. Be sure not to discuss the price of the property you’re selling with anyone prior to the auction. That’s our job; let us do that.

Is LAND acceptable for auction?

Land auctions can be very effective, but the anticipated hold time by the buyer normally results in a substantial discount from appraised value.

Let Us Make A Difference!

auction-sidebar