Real Estate Auction Types and Methods
The Accelerated Marketing Group specializes in three Program Types and three Methods that may be applied to each program type. All programs have advance-prepared due diligence that is provided to qualified buyers so that non-contingent bids may be made. Respondents are carefully monitored and developed from leads to qualified prospects and, finally, to bidders.
- Open Outcry - Properties Valued Similarly by Buyers:
- This is the type of real estate auction most familiar to Sellers. The crowd gathers, the gavel is struck and buyers call out their bids. The excitement builds until the high bidder is "knocked down" by the auctioneer, contract is signed and the property goes into final escrow. The property most suited to Open Outcry is one that is similarly valued by the buying community. It is, for example, a single-tenant leased investment with national or regional recognition, very good credit, and stable with a long lease. The buying public will value this type of property very similarly and the open competition of bidding will serve to drive up the price.
- Sealed Bid - Properties Valued Differently by Buyers:
- This type of real estate auction may be less familiar to Sellers. Here, the buying public may value the property differently among themselves. One buyer may have a particular use in mind for which he is prepared to pay a certain price while another buyer will have a different use and price point. A sealed bid insures that each will submit his best bid, not just a bid a little higher than the next highest bidder.
- Structured Asset - A Specific Hybrid of Auction Program and Methods:
- This type of auction is very specific to the needs of the Seller and the characteristics of the properties to be sold. Perhaps there are multiple properties, cross-collateralized that require simultaneous closing dates but that will realize higher prices if sold individually rather than as a portfolio. We will be glad to discuss this as specifics may dictate.
- Absolute - Property Goes to Highest Bidder:
- Absolute is the strongest message to the market that the Seller is committed to sell. On auction day, the market will determine what valuation is acceptable for your property. The fact that you are selling at auction does not change the market value of your property. Real Estate Auctions are designed to accelerate the sale of property by determining what the market is willing to bear.
- Reserve - Seller Reserves the Right to Accept, Reject or Counter Any Bid:
- Reserve is the weakest message to the market that the Seller is committed to sell. Buyers know that they may put in a lot of work evaluating the property but then have the Seller reject their bid. Reserve auctions tend to generate the least interest; buyers say "Call me after the auction and I will let you know if I will up the highest bid".
- Minimum Bid - Seller is Obliged to Sell At or Above the Minimum Bid:
- Minimum Bid is setting a price at which the market believes the property will definitely sell. The skill is to establish a minimum that causes the market to believe that there is a bargain, but as skilled auctioneers we know that the market will determine the property fair market price.
The Accelerated Marketing Group team will consult with the Seller and decide which Program and Method best suits the property and Seller objectives.
Accelerated Marketing Group (AMG) Recognized by California State Auctioneers Association (CSAA)Read More >>