Real Estate Auction
The sale of real estate through public auction is becoming more and more popular. At one time, people often associated real estate sales by auction with bankruptcy, sheriff sales, and foreclosures. That IS NO LONGER THE CASE. Today, our real estate clients are finding success in selling their private estates and properties in less time and often at half the cost of a private real estate transaction. For nearly four decades, Houser Auctioneer’s has been perfecting the art of real estate sales and our success in bringing buyer’s and sellers together is well documented. If you are thinking of selling or buying at Public Auction, please give us a chance to show you what we can do for you. Below you will find some common questions we receive about real estate sales at auction. If your question is not there, please let me know and I’ll be happy to get you the answer.
Real Estate Questions:
1) What type of properties can be sold at auction? Very simply, Houser Auctioneers has offered just about every type of property imaginable. For the last 6 years, we have offered between 30 and 50 properties per year. These properties are composed of farms and open land, commercial buildings, estates, forests, hunting ground, primary dwellings, rental properties, bankruptcies, and foreclosures. We even once sold a cemetery.
2) As a seller, is it possible to obtain a fair market price for my real estate? With a success rate close to 90 percent over the last 6 years, the answer is a resounding YES. It is our belief there is no better way to determine market value than with the use of competitive bidding. Many private realtors will artificially inflate the price of a property. They do that for one reason – to get the listing. Unfortunately, that is catastrophic for a seller because it only delays the sale of the property and worse yet chases potential buyer’s away because of the unaffordable price. Instead, at auction, potential buyer’s don’t know what the sale price is or will be. Competitive bidding starts at where ever the buyer’s want, but always remember, at auction it is NOT WHERE YOU START, BUT WHERE YOU FINISH THAT MATTERS. In today’s world, buyer’s know the general value of what they are interested in…especially with Real Estate. They may hope for a “good deal”, but competitive bidding regularly drives the price into the market value range and sometimes even higher.
3) How does Houser Auctioneers provide information on market value to buyers and sellers? The answer to that is we use our secret weapon – Doug Houser. Doug has been selling real estate as a private broker for nearly 40 years. He has been doing the same as an auctioneer for nearly the same time. His experience, knowledge of the area, and knowledge of the real estate market spans decades. He has seen the good times and the slow times. He is very accurate and most of all honest with the market values he provides. It is his goal to provide any prospective seller with a REALISTIC value of their property. Very simply, it does Houser Auctioneers no good to list a property at an unattainable price. That would only waist our sellers money and time. Instead, it is the goal of Houser Auctioneers to provide an obtainable ballpark with both a high and low value for a given property. Our records show that Doug’s sales prices are often within 8% of a given sales estimate.
4) Is there an opening bid? There is very rarely a minimum opening bid at one of our auctions. Remember, it is not where you start but where you finish that counts. That being said, Houser Auctioneers prides itself on successful real estate sales. We do not take auctions where the seller is looking for an outrageous or unattainable price. Instead, we consult with the seller on what is a reasonable ball park amount. Often times, the price will start low, however, the price almost inevitably finds its way into the ball park figure. That is one reason why we are so successful with real estate. Honesty in the value of a property gives realistic expectations to the seller.
5) Can you tell me the reserve price? With any real estate auction, the seller almost always retains the right of reserve. In other words, the seller can reject the purchase price and declare a no sale if they deem an insufficient bid. Again, Houser Auctioneers does not take a sale outside the realm of probability. Although we cannot reveal the reserve price, we will be more than happy to discuss the ball park range we feel the property should reach.
6) How do I buy property at auction? Buying a real estate is just like buying anything else…but it’s usually a bit more expensive. Often times there will be an open house the week prior to sale. There you can ask specific questions. If you miss the open house you can always walk through/ask questions right up the sale of the property. On the day of sale, you will register with a valid ID. Next, the property will be offered (usually around noon at most sales). The auctioneer will start by reading the terms and conditions of sale. This usually takes 5-10 minutes. The terms and conditions generally state the properties are being sold free and clear of all liens/debts. In addition, they state the terms for payment and settlement. Finally, they emphasize you are buying as is. It is very important to note that if you bid at an auction, your final bid is a binding contract witnessed by the entire crowd. It is often video taped and backing out can be extremely costly. Also, when you bid, you are guaranteeing you can obtain financing for the final sale price. Failure to have financing pre-approved, would result in forfeiture of the down money (usually 5-10% depending on the sale price). Immediately following the sale of the property, the winning bidder will sign contract papers for the purchase price and provide down money. From there, all you need to do is wait until the closing proceedings which usually occur 15-45 days later.
7) Are there any guarantees? In short, usually not. The terms and conditions will always state the parameters of the sale. Normally, all properties are sold free and clear of all liens. That means no back taxes or encumbrances. We will always do our best to answer any questions you have about the property. If we don’t know the answer, we can usually find out.
8) What is your record of selling real estate?
2017 Statistics: 26 of 28 Real Estates SOLD!
2016 Statistics: 48 of 55 Real Estates SOLD!
2015 Statistics: 42 of 51 Real Estates SOLD!
2014 Statistics: 45 of 53 Real Estates SOLD!
2013 Statistics: 39 of 53 Real Estates SOLD!
2012 Statistics: 30 of 35 Real Estates SOLD!
2011 Statistics: 42 of 48 Real Estates SOLD!
2010 Statistics: 30 of 36 Real Estates SOLD!
2009 Statistics: 34 of 42 Real Estates SOLD!
2008 Statistics: 31 of 40 Real Estates SOLD!
2007 Statistics: 48 of 52 Real Estates SOLD!
2006 Statistics: 39 of 43 Real Estates SOLD!