First of all "Why sell Real Estate at auction?"

Maximize the return on your assets: Buyers actively compete against one another and reinforce each other in the bidding process, insuring higher prices for the seller. The auction creates excitement and a sense of urgency with bidders often paying more than they would have otherwise.

Quick Settlements: The seller determines and controls the timing of the sale. Auctions can be held within 30-60 days of our initial meeting. Settlements occur within 30 to 60 days of the auction or less.

Avoid under-pricing your property: The seller eliminates the risk of setting a price too high or too low. Starting with the opening bid at an    auction, the price is driven up through competitive bidding, arriving at true market value. At Auctions, we only set minimums. The skies the limit  on what you will receive for your property. We have sold properties for as much as 50% above the minimum acceptable price of the seller.

Reduce Carrying Cost: The seller eliminates the carrying cost that are incurred on a day-to-day basis with continued ownership such as:       taxes, interest, maintenance, lawn care, snow removal, heating bills etc. etc.

No Contingencies: The seller has the advantages of being able to establish fixed terms that are not negotiable. The seller also sets the conditions of sale.

Q: I've never bought real estate at an auction; how does the process work?
A: Buying real estate at auction is a very simple process. However, it is important for you to be informed and prepared prior to auction day. You should inspect the property during one of the scheduled preview dates.

Q: What are the advantages of buying real estate at auction?
A: Buying real estate at auction allows you to experience a quick sale and closing, eliminates negotiations, and give the assurance that the price paid was market value.

Q: What is meant by  "Absolute Auction?"
A: Real Estate being sold "Absolute" means that the property will be sold to the highest bidder, regardless of the high bid price.

Q: What is meant by  "Reserve Auction?"
A: Real Estate being sold "Reserve" means that the Seller retains the right to accept or reject any bid for the property.

Q: What is meant by   "Minimum Bid Auction?"
A: Real Estate being sold with a "Minimum Bid" means that there is a published minimum bid the Seller will accept. Bidding starts there and will be sold to the highest bidder above the minimum bid price.

Q: What is meant by "Suggested Opening Bids?"
A: Suggested Opening Bids are the Auctioneer's recommendations of starting bids. From that initial bid you would increase your bid in increments as called out by the Auctioneer until you reach your highest bid price. Suggested Opening Bids are not minimum reserve figures.

Q: Why are properties sold at auction?
A: Owners make a wise business decision to sell property in a one-day sale rather than continuing to incur carrying costs and negotiating in a manner associated with conventional marketing. Sellers are motivated to sell and offer you an opportunity to purchase desirable property at a substantial discount.

Q: What is required in order to bid at an auction?
A: You MUST register on auction day and receive a Bidder Card in order to bid. At registration you must present to the Registrant (not to be collected) a Cashier's Check made payable to yourself in the amounts listed in the Property Information Package. Personal checks, company checks, money market checks or letters of credit will not be accepted. Cash cannot be accepted due to security purposes.

Q: Is my deposit refundable if I change my mind after the sale and decide not to buy the property?
A: No. If a buyer does not close for any reason on or before the closing date, the initial deposit is forfeited.

Q: Can I buy more than one property?
A: Yes. You just need to bring and present a Cashier's Check for each property you intend to purchase.

Q: When and where are closings held?
A: Closings generally occur from within 30-45 days of an auction. The Property Information Package for each auction contains information about closing location, contact name of closing agent and phone number. The closing agent is usually at an auction to answer any questions and to receive buyer deposits.

Q: How are auctions conducted?
A: Auction are conducted by open bidding. As a bidder, all you need to do is hold up your bidder card and call out your bid, or tell your Bidder Assistant what amount you want to bid. The properties being sold are shown on the Available Board located near the Auctioneer. As the properties are sold, they are removed from the Available Board and listed on the Sold Board.

Q: What happens once I have become the successful high bidder?
A: You give your Cashier's Check and Bidder Card to your Bidder Assistant. You then move to the contract table where you endorse your check and complete the Contract for Sale and Purchase. Once you have completed all the paperwork, you then set a date for a closing appointment.

Q: Do I have to make any more deposits other than my initial deposit before closing?
A: You must increase your initial deposit to a total of 10% of the purchase price upon execution of the contract . You may pay this additional amount by personal check.

Q: Is financing available?
A: Most auctions have some form of financing available. See the information listed in the auction's Property Information Package.

Q Where can I find information regarding the homeowner's documents?
A: At each of the property inspections and at the auction.

Q: What is a Buyer's Premium?
A Buyer's Premium is a percentage amount paid by the buyer and added to the highest successful bid to determine the contract price.

Q: Which properties are sold "Absolute?"
A: The number of absolutes to be sold is found in the auction's Property Information Package. The successful bidders are given the option to choose the property of their choice from the properties displayed in comparable groups on the Available Board. The Seller retains the right to add to or remove properties in the groups displayed.

Q: Do I need to be represented by a Real Estate Broker in order to buy at the auction?
A: No. Most buyers are not represented by a Broker.

Q: Whom do I talk with if I don't understand the auction contract?
A: Contact Pickett Auctions. It is very important for auction buyers to be educated and informed regarding the auction process. Make sure all questions and concerns are answered before you attend an auction.

Benefits of a Real Estate Auction

Seller

·         Sellers’ property is the center of an intense, aggressive marketing plan.

·         Competition is introduced among buyers.

·         Buyers will see their competition.

·         Buyers come to the auction PREPARED to buy.

·         Time frame to market, sell and CLOSE the property is compressed!

·         The property will be sold by on an exact date.

·         Sellers’ fees can be reduced; the Buyer will pay many of the fees.

·         Long drawn out closing dates are eliminated.

·         Seller can be an active participant in the marketing process if so desired.

·         Offers can be accepted prior to the auction.

Buyer

·         Buyer knows that the Seller is motivated.

·         Buyer knows the exact terms of the sale.

·         Long negotiations will be eliminated.

·         Buyer knows that a property can be purchased in a given time frame.

·         Buyer may have a chance to buy at a discount.

Terms of Sale

Pickett Auction Service has the terms of the auction laid out perfectly clear so both the Buyer and Seller understands just how the transaction will take place.

·         Property is sold as is.

·         Seller will provide Standard Owners title insurance.

·         Seller will split closing cost.

·         A non-refundable earnest money will be collected the day of Auction. The only way for this money to be refunded if there is a defect in the title that cannot be remedied by closing date.

·         Closing will take place within 30 days after auction. This period can be adjusted out if desired, when the terms of sale are written.

·         The Buyer pays all lender requirements, inspections, or appraisals.

Types of Real Estate Auctions

1.      Minimum Bid. This type of auction sets a bid that is the lowest dollar that the seller is willing to accept for the property. The property will be sold to the highest bid above the minimum bid.

2.      Owner’s confirmation. This auction does not set a minimum bid. The price is arrived at the day of the auction. The Owner has the option of rejecting the high bid.

3.      Absolute. The property will be sold to the highest bidder.

The Seller needs to decide which type of auction will best fit their needs. Each type has pro’s and con’s which must be addressed in a face-to-face meeting.

Advertising

The marketing campaign uses a mix of Brochures, Direct mailings, Newspapers, Real Estate magazines, Signage, Multiple Listing Service, Door hangers and Realtor Delivery Service. This campaign will take approximately 60 days to complete. The advertising is designed to make time be of the essence, forcing potential buyers to be prepared to perform. Each campaign is tailored to the property being sold.