AUCTION STANDARDS AND PROCEDURES:

TERMS OF SALE

The property being sold will be advertised prior to the date of sale.  The advertisement will be read aloud at the time of sale and additional terms may be announced.  Mr. Kidwell will also make any announcements that involve the property and the obligations of the successful purchaser.  Failure to comply with the terms of sale may lead to forfeiture of the deposit and make you liable for expenses to resell the property as well as any deficiency that may occur.

CONDITION OF THE PROPERTY

The property is sold "as is".  Unless announced otherwise, seller makes no representations or warranties concerning the property's condition.

DEPOSIT

There will be a deposit required of the successful purchaser, generally in cash, certified check or cashier’s check.  All deposits are credited toward the purchase price.

EXPENSES OF SALE

The purchaser is not responsible for any costs other than normal closing costs associated with the purchase.  You will be required to pay interest on the unpaid balance (sales price less deposit) from the date of sale to the date of settlement.

SETTLEMENT

Settlement is specified in the terms of sale.  You are required to settle on the property within the specified time.

FINANCING

The purchaser is responsible for obtaining financing unless the property is being sold subject to a prior deed of trust or mortgage.

BIDDING PROCEDURE

Mr. Kidwell will request bids for the property after having read the advertisement of sale and at the conclusion of question and announcement period.  Bidding is conducted either verbally or by gestures.  The Auctioneer controls the bid increments and may reject any advance bid he considers too nominal or frivolous.  In the event of a dispute between bidders, the Auctioneer shall decide in favor of one bidder or re-offer the property for sale.

WHERE ARE AUCTIONS CONDUCTED?

MOST auction sales of real estate are conducted on-site, i.e., on the premises.  Occasionally, in multi-parcel situations the sale will be conducted in a larger public gathering place (generally, this is used for investment properties).  Tax and foreclosure sales may be conducted from the court house steps.

ADVANTAGES OF AN AUCTION
TO THE SELLER:

• Sets sale date
• No fix-up costs
• Settlement in 30 days (45-max)
• Tax savings
• Eliminate buyer procrastination
• No contingency contract
• Immediate net proceeds to seller
• Representation from planning through settlement
• Targeted marketing program focused exclusively on their property

ADVANTAGES OF AN AUCTION
TO THE BUYER:

• Opportunity to buy below market
• Financing assistance
• Clear title guaranteed
• No hassles to purchase

AUCTION FACTS FOR REALTORS

• Auctions are user friendly
• Are a convenience rather than a necessity
• Provide Realtors with an alternative way to sell/satisfy clients
• Converts un-sold listings to sales
• Saves valuable Realtor time
• Realtors earn commission for sale referrals
• "Auction" sends a stronger message to the buying public
• Eliminates buyer procrastination
  

WHEN ARE AUCTIONS MOST EFFECTIVE?

• When property is highly desirable and active bidding is expected to maximize the sale price.
• When the seller needs to liquidate the property quickly.
• When the ratio of reduced holding costs associated with an auction sale provides the seller with a larger percentage of retail value than a sale by private treaty.  This can be especially effective for developers wishing to avoid the holding costs related to owning the remaining units in their developments.

IS YOUR SELLER A CANDIDATE FOR AUCTION?

A MOTIVATED SELLER

Must sell in short time frame

BOTH SELLER & SALE PRICE ARE REALISTIC

Minimum acceptable price reflects current market values

LOW DEBT TO EQUITY RATIO

Mortgage lien is in reasonable proportions to anticipated sale

MORTGAGE LIEN HOLDER IS COOPERATIVE

YOUR SELLER IS A CANDIDATE ESPECIALLY WHEN:

• Expedient sale is Required
• For Estate OR probate
• Owner retirement / long term health care
• Relocating out of state
• Holding costs outweigh benefits of ownership
• Downsizing investment holdings
• Partnership dissolution
• Asset recovery
• Divorce
• Bankruptcy
• Tired listing

WHO ARE TYPICAL SELLERS?

Homeowners, REALTORS, Attorneys, Banks, Insurance Companies, Partnerships, Corporations

HOW DOES AN AUCTION BENEFITS THE SELLER?

SELLER SELLS PROPERTY IN "AS IS" CONDITION

Seller saves fix-up expenses

SELLER PAYS NO REAL ESTATE COMMISSION (Most Instances)

Buyer pays real estate commissions via a Buyer's Premium on most residential & commercial sales

SELLER PAYS NO CLOSING COSTS

Buyer pays all closing costs which are adjusted to the date of the auction

SELLER NETS MORE DOLLARS

Seller saves commission costs, fix-up and closing costs and earns interest on the remaining purchase money

SELLER MOVES ON WITH FUTURE PLANS

Auction finalizes the "for sale" time-frame and sets settlement in as few as 30 days.

Title work is prepared in advance of the sale.  Buyer contracts have "no" contingencies.

SELLER MAY ELECT TO PAY NO "UP FRONT" ADVERTISING MONIES

If sold "absolute" costs of advertising/marketing are paid from settlement proceeds.

Seller advances advertising costs only "reserve" sales.