Sellers Forum

Seller FAQ

What are the advantages to a seller in an auction scenario?

• IMMEDIATE RESULTS
• ELIMINATES HOLDING COSTS
• CONTROL OF TERMS
• CREATES URGENCY
• INTENSE SPECIFIC MARKETING

Imagine allowing the seller to set the timetable... and close on his assets in as little as 30 days!

By using the auction method of marketing, the seller is able to sell assets in approximately 45 days, rather than relying upon the ambiguity of the traditional real estate market. An auction allows the seller to establish the timeline.  Knowing a specific, definite closing date allows the seller to take advantage of opportunities for reinvestment and relocation immediately.

ELIMINATES HOLDING COSTS

An auction reduces the holding costs of the property, including interest, taxes and maintenance. Due to the shortened marketing period of the auction, these costs terminate quickly.  Traditional sales methods can leave the seller responsible for these costs for an indefinite period.

CONTROL OF TERMS

Additionally, the terms and conditions of the sale are established and controlled by the seller. Each sale is tailored to suit the individual seller’s needs and is carefully evaluated to determine the most appropriate (and cost effective) method of offering the property to obtain the most money for the seller. Higgenbotham explores additional alternatives, such as 1031 exchanges, bidding with equity and convertible equity as opposed to cash.

CREATES URGENCY

The auction method forces buyers to act. Traditional sales methods do not create the urgency necessary to close the sale quickly. Auction demands decisiveness and takes advantage of the synergy created when a group of buyers are bidding competitively against one another-- each bid reaffirms the value of the property.

INTENSE SPECIFIC MARKETING

As opposed to traditional marketing, in which the buyer receives offers sporadically over an extended period of time, an auction establishes a specific date by which all offers are received. With this target date in mind, an aggressive advertising campaign is designed. This campaign is created to emphasize the amenities of your property, and is media-specific -- with advertising placement in the most effective media. The goal of our advertising campaign is to ensure that all potential buyers are targeted and aware of the sale.

I have property to sell, what expenses am I responsible for?

Advertising is the only cost to our sellers. When a seller signs our auction agreement there is a pre-determined advertising fee or budget. The budget depends on the size of the property and the size of the advertising campaign.

What are the benefits of selling property at auction?

A Higgenbotham real estate auction is a win-win proposition for everyone involved. As a seller you dispose of properties quickly and efficiently, thereby saving on the long-term carrying costs such as interest, real estate taxes and maintenance. For our buyers this can mean a wise investment. Since the auctions are conducted publicly, both buyers and sellers have the assurance of viewing the property's value emerge as the bidding process progresses. An auction creates competition among buyers and exposes the property to a vast number of qualified prospects. Because Higgenbotham auctions are accelerated sales, properties are often be sold in less than 6 weeks from the time of listing. For real estate agents, auctions can mean an increased client and customer base as well as increased profits.

What factors determine the success of an auction?

1. Foremost is the desirability of the property being offered for sale. This includes location, condition and surrounding properties.
2. An aggressive marketing and advertising plan designed by Brenmar Advertising which is geared toward prospective purchasers and drives them to the sale.
3. Realistic expectations on the part of the seller.
4. Choosing the type of auction that best fits the property and the seller's needs. An absolute auction will generally bring a higher return than a reserve auction.
5. Conducting the auction in a professional manner and following up through closing.
6. Performing due diligence (reviewing taxes, survey, environmental, etc.) before the sale and providing it to potential buyers so that they are educated and the only issue that remains is price.

Are all properties suitable for auction?

Most properties are great candidates for auction, but certainly not all. Residential property (including town homes, condominiums, cooperative apartments and single-family homes), commercial property, vacant land, farms, grove, industrial complexes, manufacturing plants - even boat slips - are sold at auction.

Don't real estate auctions depress home values?

Not at all. Real estate auctions reveal the real market value of a property.  Because auctions are conducted in a public format where all bids are known participants are given immediate snapshot on the property's value. At auction, values settle at the level the market can bear, neither elevated nor deflated.

Who usually buys at real estate auctions?

Anyone can benefit from buying at a real estate auction. First-time homebuyers, investors, speculators and many others buy at auction.

How are properties usually advertised for auction?

This varies greatly depending on the type and value of the property being offered as well as the advertising budget of the seller. One of the essential elements for a successful auction is an aggressive marketing program

Each Higgenbotham auction has its own powerful promotion and advertising program. The program is designed by the professionals at Brenmar Advertising and is customized to fit each auction.

The advertising budget is determined according to specific property attributes and the type of buyer that needs to be reached. That budget is then broken down into different forms of advertising that will best target the buyer for the sale.

The various forms of advertising are: sale bills or posters posted in public places, brochures mailed directly to prospective buyers, newspaper advertising in local, regional and national publications if the budget allows, ads in trade journals and magazines, internet web sites, radio ads, colorful signs posted on the property and television and cable ads as the budget allows.

Brenmar is an experienced auction marketing company with more than 24 years of experience in promoting real estate auctions. Brenmars’ staff of award winning graphic artists and media buyers know which forms of advertising are best suited for a particular type of auction and property.

Brenmar will facilitate everything from preparing the advertisements to placing them in the desired media. This hard-hitting advertising targets large groups of buyers that will participate and competitively bid on the property thereby yielding true market value for its seller.

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