Auction Buyers Guide_Final

© 2014 RealEstateAuctions.com All Rights Reserved

Buying Real Estate?

Use an Auction For the Best Results!


There’s been an explosion of auction

popularity in recent years

• Online merchandise auction sites• Popular TV shows focused on auctions

Did you know that in many countries around the world, auctions are the preferred way to buy and sell real estate?

Our international friends in Ireland, Australia and some nations in Asia have long taken advantage of all the benefits of real estate auctions. You can, too.


When buying real estate, would you like:

• The transparency of seeing other competing offers?• No negotiation period?• The ability to fully inspect your potential purchase?• A set date of sale? • The opportunity to get a good deal?• To eliminate the seller and broker from any decision

making?• To eliminate broker favoritism?• To eliminate discrimination?• To eliminate the (behind the scenes) process traditional

real estate adopts when making an offer?

Then Choose a Real Estate Auction!


Auctions vs. Traditional Sale for Buyers

AUCTION METHOD

Known date of sale

No buyer/seller negotiations

Open, fair bidding. No “best-guess” offers

Bidders determine Fair Market Value

Buyers receive comprehensive due-diligence information

Set closing date, usually 30 days or sooner after the auction date

TRADITIONAL METHOD

Sales process may take weeks or months

Negotiations are often the sticking point in the process

Offers can be rejected with no feedback

Pricing is often set unrealistically

Rarely is fully-detailed information available early in process

Closing date is often TBD

Here’s a look at how an auction is better for the buyer than a traditional real estate sale


Virtually all types of real estate can be

auctioned

• Single family• Multi-family• Condos• Townhomes• Commercial

• Investment• Special-use• Land• Agricultural• And More!


Some Example Properties

Hawthorne, FloridaUSA

Omaha, NebraskaUSA

Tierrasanta, CaliforniaUSA

New Kent County, VirginiaUSA

Fishhaven, IdahoUSA

La Terranas, CaribbeanDR

Gig Harbor, WashingtonUSA

Bonita, CaliforniaUSA


There are three popular options:

• Absolute Auction• Minimum Bid Auction• Auction With Undisclosed Reserve

Let’s take a look at an overview of each type of auction

What types of auctions will I encounter?


Minimum

BidAuction

Bidding begins at a minimum, acceptable price to the seller. Less popular among bidders than the Absolute Auction, a Minimum Bid Auction nonetheless is attractive to buyers because the starting bid is typically set low enough to potentially provide a reasonable deal for the buyer.

Auction Bidding Types

Highest bid wins. Absolute Auctions generate by far the most interest among buyers because of the opportunity to win the property with just one more bid.

AbsoluteAuction

ReserveAuction

Only the seller, the auctioneer and the Auction Specialist with RealEstateAuctions.com knows a confidential minimum price at which the property can sell. Buyers may find this option less compelling because of the unknown minimum threshold their bidding needs to reach in order to purchase the property.


There are three primary ways you’ll participate in an auction:

• Live, In-Person Event• Online-Only Event • Live / Online Hybrid Event

Let’s see how each of these methods are defined

What methods of auction will I be able to bid?


Online-Only Event

Perfect for a listing or listings in which a live, in-person event isn’t practical. With an Internet connection and a computer, bidding can be done from almost anywhere, on properties located almost anywhere, using the RealEstateAuctions.com Online Bidding Platform.

Auction Methods

When most people think of “auction,” this is it. This type of event features a live auctioneer in an open-outcry setting. Qualified bidders raise their numbered paddles or bid cards when they wish to bid at the announced price, which is publically acknowledged by the auctioneer. A live, in-person event is typically held at a hotel ballroom or conference center for multi-property listings, or onsite at the subject property for a single listing.

Live,

In-Person Event

Live / Online Hybrid Event

A great combination that melds today’s technology with tradition to throw open the doors for bidding from in the room, across town or across the world.


Question & Answer

A: Absolutely not. Any real estate that can be sold can be

auctioned. It simply is the fastest, most efficient and most transparent way to buy and sell.

Q: Aren’t auctions used only for foreclosures and distressed properties?


Question & Answer

A: Yes, select properties are sometimes available for sale

without an auction. Use the contact information at the

conclusion of this presentation.

Q: Does RealEstateAuctions.com ever offer listings that can be purchased other than via an auction?


Question & Answer

A: We provide a comprehensive BIP (Bidder Information

Package) downloadable via our website that includes many

pertinent documents about the property. In addition, we

encourage an inspection visit at an open house we will hold at

the subject property, on an announced date and time.

Q: Where do I obtain information about the property in which I am interested?


Question & Answer

A: First, you must be a qualified buyer. That means able to

purchase with cash, or with financing already in place. This is

one of the main reasons auctions are fast and efficient. With

qualification already in mind, let’s look at an onsite auction

followed by an online auction.

Q: How exactly do I take part in an auction?


Participating in an Online Auction : Process

End of Auction

At the close of auction, the top bidder will be notified and provided with additional information about contact signing, supplying additional funds and completing the purchase.

Fax or Scan

Fax or scan-to-email proof of earnest money in certified funds (typically a cashier’s check) to the title company or escrow agent specified

$$Earnest Money Deposit

Follow the instructions regarding how much earnest money is required to participate in a given auction

Registration

Visit www.RealEstateAuctions.com and register to bid online. Read and accept the Terms and Conditions.

Confirmation

An email will be sent confirming your bid and alerting you if a higher bid is received. Place another bid if you wish

Placing a Bid

When bidding is open, use the easy-to-navigate tools in the Online Bidding Platform to place your bid

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Participating in an Onsite Auction : Process

Registration

Register with administrative staff and provide earnest money specific to the property(s) on which you are interested in bidding. This is typically a cashier’s check made out to yourself, which will be held and returned to you if you do not place any “winning” bid

Arrival

Arrive at the designated location at least 30 minutes before auction time

Bidding

Raise the numbered card or paddle you have been issued to place a bid, following the bid caller’s lead

Terms and Conditions

Agree to Terms & Conditions

Winning Bid

If designated the high bidder by the bid caller (auctioneer) at the end of that property auction, proceed to the designated area to sign paperwork


Here are some of the many ways you’ll find auction events we’re holding and the listings that are offered:

• The RealEstateAuctions.com website with a dedicated, customized listing page for each property

• Local Multiple Listing Service• Additional real estate-focused websites• Brochures and/or flyers• Direct mail• Social media• News releases• Company newsletter • Newspaper ads• TV and/or radio spots• Billboards• Guerilla marketing

How We Market


Marketing ExamplesCommercials

Billboards

Direct mailFlyers


Buyer’s are charged a Buyers Premium, which is a percentage added to the “hammer price” (when the auctioneer’s gavel falls to indicate a sale) of a property.

Example:

$150,000 hammer price + Buyer’s Premium (4%)*

= $156,000 final sale price.

*Buyer’s Premium will vary

How Much?

How much will it cost for me to buy real estate at an auction?


About US

We’re a national real estate company specializing in auctions. We’ll sell your real estate using the fastest and most efficient way of bringing buyers and sellers together.

RealEstateAuctions.com was founded in 2010 by the CEO of a successful and well-known real estate brokerage of more than 20 years in Chicago. He began using auctions as a marketing method and soon decided it would become the sole purpose of the company because of the speed, ease and transparency auctions provide.

RealEstateAuctions.com is currently licensed in most states, with expansion to all 50 underway. In 2015, the company expects to expand internationally.


Thank you!

If you’re interested in learning more, phone or email the RealEstateAuctions.com representative who provided this presentation, or contact our national headquarters.

RealEstateAuctions.comCorporate Headquarters1765 Scott Blvd., Suite 209Santa Clara, CaliforniaUSA

Tel: (650) 584 3741 and (877) 938 7340

8:00 a.m. – 4:00 p.m. Monday – Friday

email/website [email protected]

Auction Buyers Guide_Final

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