Great Lakes Auction Company, Inc.
Online Only Auctions, Antiques, Art, & Collectibles, General & Estate, Other
Why Sell Real Estate At Auction?
SPEED OF THE PROCESS
Once a seller has agreed to auction a property, a date is set for the auction from 3 to 6 weeks out. Sellers may avoid long listing periods and abate the holding costs that may accrue during the time a property is on the market.
PROPERTY IS SOLD WITH NO CONTINGENCIES
Most properties sold at auction are sold in “as is, where is” condition. Potential buyers are given ample time to inspect properties prior to the auction. Seller does not have to worry about contingencies holding up the closing process, including financing contingencies. Home or builder warranties may or may not apply as per Sellers instructions.
SELLERS KNOW EXACTLY WHEN THEIR PROPERTY WILL SELL
As mentioned, sellers may avoid the long listing periods that may occur with other methods of real estate sales, especially when the real estate market is slow. Additionally, they avoid unscheduled and interruptive showings. The Auction Company will schedule one to three property previews prior to the auction.
With auctions, the average real estate sales process is compressed into 3-4 weeks. This allows us to put together a blitz marketing campaign that can save money for sellers, because each marketing dollar has a greater impact. We not only compress the marketing process, we implement a far more aggressive marketing campaign than most other sales methods.
LOWER HOLDING COST
The timely sale of properties at auction reduces long-term carrying cost, including taxes, insurance, maintenance and liabilities that can accrue with other real estate sales methods.
UNLIMITED PRICE CEILING
Competition among bidders is what sets auctions apart from other sales methods. Auctions are one of the only sales methods where buyers keep raising the bid, contrasted with other sales methods where buyers try to negotiate the asking price down.
Competitive bidding takes the seller out of the negotiation process. The bidders negotiate with each other until the high bidder is revealed. At that point, the real estate purchase and sale agreement is signed and the closing date is set with the title company.
Frequently Asked Questions
Q. Why should I sell my property using the auction method?
A. To sell your property quickly and to receive a non-contingent contract and closing within 30 days.
Q. I am not in financial trouble, should I be concerned about what people might think if I hold an auction?
A. You are not alone in your concerns. There are great differences in the marketing of a voluntary, ’by choice’ auction such as ours versus a distress auction. Our auctions are positive, enthusiastic events designed to generate competitive bidding.
Q. My property is currently listed and my Listing Sales Associate has had no previous experience with auctions. Will this impact my results?
A. No. Our auction staff are specialists that deal with this situation. We meet with your Listing Sales Associate and discuss auction procedures with them. We also work with your Listing Sales Associate throughout the entire process. Ultimately the Auctioneer manages the auction process and monitors the Listing Sales Associate.
Q. What if the property is priced below the market right now?
A. Often we find that the price is not the reason why a property doesn’t sell. The primary cause is often that there has not been adequate showings and, therefore, sufficient exposure of the property. In other words, it has become ’stale’. The auction process is the best way to revive interest in the property.
Q. What types of property do you auction?
A. We auction all types of real estate from condominiums, co-ops, townhouses, single-family homes, land, vacation properties, commercial and investment properties and high-end trophy properties.
Q. Who pays for any Marketing Fees?
A. Marketing fees will be paid by the Seller with a budget approved by both Seller and Auction Company
Q. How are the Listing Sales Associate, the Selling Associate and the Auctioneer compensated?
A. All commissions are paid by the Seller as per the Listing agreement. The Auction Company is paid out of the Buyer’s Premium. There are no additional costs to the seller, except title insurance and a % of the closing costs.
Q. What types of auction are there?
A. RESERVED, MINIMUM BID OR ABSOLUTE AUCTION:
RESERVED: Property will be offered at a confidential reserved auction and the Seller has the right to accept or reject the highest bid unless minimum bid amount is achieved before, during or after the auction.
MINIMUM BID: Property will have an advertised minimum bid. This strategy will allow us to entice bidders with an advertised auction of the property with a published minimum bid.
ABSOLUTE AUCTION: Property will sell to the highest bidder regardless of price. This procedure guarantees a sale of the property and usually brings more bidders to the auction.
Q. Do I have to sell my property for the high bid?
A. If your property was sold ABSOLUTE, the answer is YES. If your property was sold with any reserve, the property does not sell unless the reserve amount is met.
Q. Where will the auction be held?
A. Most Real Estate auctions are held on site but we do have multi- property auctions scheduled throughout the year.
Q. What happens to the buyer’s premium if the property sells before the auction?
A. The seller shall be responsible for including the buyer’s premium in any contract accepted by the seller for the property. Contact the Auctioneer if an offer has been presented to you.
Q. Will we still have to consider contingent contracts?
A. Everything we sell at auction is sold ’As Is’, ’non-contingent’. However, any offers made prior to the auction can be submitted with contingencies but would still have to be accepted by the seller.
Q. Does ’As Is’’ mean that I don’t need to disclose any known defects?
A. Though we are selling ’As Is’’, we must abide by all applicable state and federal laws. For instance, we must allow for a contract to be contingent upon a review of condominium documents and/or homeowners association documents just as we would in any real estate transaction. Full disclosure to all interested parties must be made in accordance with the law. We must also allow for a ten-day, pre-auction inspection for potential buyers to inspect for lead paint if your property was built prior to 1978.