Auction Sales Methods
FAST FOCUSED & EFFECTIVE!
As a Seller, you want to sell your property as quickly as possible so you can turn a page in life and move on. A real estate auction establishes the true market value of your property in a specific marketplace on a specific day. From our experience, the Love Auction Sales methods are simply better, faster, and a far more efficient way to sell real estate than the traditional sales method. Either of our cutting-edge Love Auction Sales Methods (Absolute or Reserve auctions) are designed to sell your residential and commercial real estate in 30+/- days and net you the most amount of money possible at the closing.
Love Auctions Net You More Money because your property will be sold in “As-Is” condition for cash with no contingencies. The Love Auction deal structures are designed to save the Seller on sales expenses, resulting in higher net proceeds at closing! Love Auction Seller commissions are also far less than the Traditional sales commissions. As a result, fewer sales expenses and commissions mean more net proceeds at the closing!
Benefits of Selling Property at Auction
- Cost-effective, accelerated method of sale
- The Auction deal structure nets Sellers more money at closing
- Seller sets the minimum sale price, date of the auction
- Properties are sold AS-IS in 30 days with NO contingencies
- Sold on your terms, no negotiating
- Buyer pays the commissions & all closing cost
- Auction sale greatly reduces all carrying costs
- Fast Closings -15-30 days from the auction event
- Buyers come prepared to buy
- Auction creates competition among buyers
- Offers only go up, never down -No price ceiling
- Auction price often exceeds the price of a negotiated sale
- Realizing the true market value for the property
- It requires potential buyers to pre-qualify for financing
- Auctions focus the attention of the market to YOUR property
- Exposure of the property to a large number of pre-qualified prospects
- An aggressive marketing program that increases interest and visibility
- It eliminates numerous and unscheduled showings
- Competition between other similar properties in your area eliminated
- Totally transparent sales process
ABSOLUTE V. RESERVE AUCTION
Properties can be sold with or without a Reserve which is solely determined by you, the Seller. An auction without a Reserve is known as an “Absolute Auction” which means the Seller has agreed to accept the highest bid regardless of the amount at the auction. An Absolute Auction will typically produce more bidders to participate in the auction because Buyers know the property is guaranteed to be sold and often results in a higher sale price than a Reserve Auction. Our Love “Reserve Auction” is RISK-FREE, and if the auction does not produce a Buyer willing to pay your desired sales price, you are under no obligation whatsoever!
More Net Proceeds at Closing
The Love Auction Sales Method deal structure and lower commissions greatly reduces the Sellers transactional cost which significantly increases the net proceeds at the closing.
See how your property stacks up using the Love Auction Sales method!
Try our Auction Calculator and plug in your projected sale price, your mortgage payoff and your monthly expenses and we will calculate the increased net proceeds a Love Auction delivers over the Traditional Sales Method.
Accelerated Sales Process
If you choose either an Absolute auction or a Reserve auction, we showcase your property to the marketplace, providing maximum visibility to the target market and announce the auction date will take place in the following 30+/- days. We aggressively advertise and market the property at our expense to potential Buyers and Broker/Agents. This includes posting your property on every online real estate website and in conventional real estate advertising platforms and marketing systems to notify all real estate professionals and Buyers locally, regionally, nationally, and internationally, that your property will be sold at auction and invite them to register.
Our advertising and marketing efforts are specifically designed to stimulate interest in the property and to encourage Buyers to make purchase offers before the auction. Love will also provide Buyers with full access to the property, a property appraisal, a home inspection report, termite inspection report, radon test report, a plat map, a title and lien search along with an abundance of other information about the property. It is not unusual for properties to sell before the auction date. In a Traditional sale environment, your property will be one of many thousands in the Multiple Listing Service (MLS).
Properties offered at auction are sold in “As-Is” condition with absolutely no contingencies. This means the high bidder cannot back out of the auction purchase contract without risking their escrow money due to of inspections or lack of financing. Experts have estimated that traditional sales have a fallout rate as high as 30%-40% because of contingencies. This wears on the Seller’s emotions and lengthens the time it will take to sell their property even more.
No Negotiation Zone
The Love Auction method of marketing real estate pits Buyer against Buyer. This allows the Seller to sit back and enjoy the auction bidding escalate the sales price. Traditional sales methods pit the Buyer and Seller against each other causing an anxiety-ridden back and forth, sometimes for days or weeks. Many times, this results in strained relations between the Buyer and Seller and unchecked emotions have been the ruin of many real estate transactions.
True Market Value
Markets move faster and more often than ever before in World History. Real Estate values can dramatically drop or surge over the span of a 6-12 month listing agreement. In general, the Real Estate market is extremely sensitive to the time of the year, the weather, and any unexpected changes to the economy from things such as the stock market and world events. The Coronavirus, for example, destroyed the entire Real Estate market in the middle of the prime selling season. When you are ready to sell, Love Real Estate & Auctions provides the catalyst to determine the true market value of your property. All too often, the traditional listing process starts out with overpricing a property immediately killing the interest of potential and serious Buyers. At a Love Auction, the fair market value of a property is established, and prices go up from there.
Best Time to Auction?
Auctioning a property when it first comes on the market has tremendous advantages over the traditional sales method. Statistical data indicates that the highest amount of interest in a newly listed property is in the first 30 days of when a property is first placed on the market.
Auctioning a property in the first 30 days of being placed on the market will deliver better results for a Seller over the traditional sales method. Auctions do not cap or limit the sale price like the traditional sales method does. The excitement that comes with an auction delivers bidding that will drive up the price often beyond the traditional “fixed” asking price determined with the traditional sales method. Auctioned properties are sold in “As-Is” condition with no contingencies and close in 30+/- days from the auction date. Auctions eliminate the Sellers carrying cost and the entire auction process takes 60 days+/- from listing to closing.
When Love Real Estate & Auction Company lists your property to be auctioned, we keep the process on a tight schedule. When our Love Real Estate & Auction sign goes up, it tells Buyers how the Seller has chosen to sell the property and the date it will sell. The auction date is a deadline that Buyers take seriously. As potential Buyers register for the upcoming auction, we continue to encourage potential buyers to BUY IT NOW and accept purchase offers before the auction. Approximately 20% of the properties are sold before Auction day. Should the auction proceed, and the property is not sold, we implement a new marketing plan which may convert the sale method to a traditional listing and/or attempt a second auction. The aggressive marketing efforts continue until the property is sold. The Love Auction sales approach offers Sellers a unique sales approach that provides the best of several sales platforms.
Qualified & Motivated Buyers
When a potential Buyer registers to participate in the real estate auction and post a substantial deposit, they are there to buy that property. No tire kickers, just ready willing, and able Buyers. The Buyer has done all their homework and the Buyer is only at the auction to buy the property, subject to only one thing, the price. This ensures that each Buyer is taking the process very seriously. In addition, the Buyer who becomes the high bidder or the winner of the auction knows that an additional deposit will be required.
Live Auctions & Online Bidding
Love Auctions are live events with a professionally licensed auctioneer typically held at the property location. The auction may be simulcasted on our online bidding platform to ensure that every potential buyer can participate in the auction without having to physically attend the live auction. More Buyers bidding at an auction will always result in a higher sale price.