Frequently Asked Questions about Estate Auctions
What are some key benefits of an estate auction?
One key benefit to the seller is time. The auction company will save the owner hours upon hours. The seller is often acting in the role of executor, executrix and even counsellor to other family members and heirs. Especially out of town heirs will benefit by having someone else prepare for the auction. Another benefit is you can sell all house hold or business merchandise, real estate or other assets at one time. This eliminates what is often months of marketing or selling assets a few at a time. It is common for heirs to look at the good assets, the bad and even the ugly and feel overwhelmed.
What does the auction company do?
- Determines the objectives of the heirs and executors of the estate
- Uses an automated tasks management system for quality assurance
- Auction professionals inspect the assets for auction
- Works with you to determine selling features
- Works with an advertising agency to create a unique marketing plan that may include local, regional, or national media, radio, brochures for direct mail, trade journals, signs, Open houses or previews, websites, social media, and email campaigns
- Prepares personal property and household merchandise for auction
- Sets aside personal items, photos, financial records and other items not to be sold
- Provides the seller with leads, inquiries and other marketing results
- Provides the seller with proof of auction marketing including all electronic Medias
- Prepares an auction catalog of assets for auction
- Photographs and videos of the real estate and/ or merchandise
- Handles all inquiries to free up the sellers time
- Works with the seller to determine what is the best auction day location
- Determines the best location for the auction whether onsite or off site
- Conducts the auction with an auctioneer, online bidding or both
- Collects the funds, assist in follow-up and closing the transaction
- Provides a detailed settlement of all assets sold
- Works with the closing attorney of title company in the case of real estate
What are the seller’s responsibilities in an estate auction?
The seller’s responsibilities will be similar to those in any real estate transaction. Examples are:
- Provide the auction company with title information for motor vehicles
- Provide the auction company with deeds and ownership records for real estate
- Provide the auction company with property descriptions
- Provide the auction company with appraisals, surveys, etc.
- Provide details about existing mortgages and liens
- Provide marketing expenses
- Provide information about previous attempts of marketing and the results
- Make disclosures of known defects
- Make the property available for showings or previews
- Seek advice during the process from your auction professional
- Refer all inquiries to your auction professional
- Provide settlement and closing assistance
- Be realistic about the value of the assets and property
Why do auctions work?
One factor is auctions have a deadline. That’s right, a deadline. The deadline creates urgency. A FOR SALE sign does not have a time line for potential buyers to submit offers. The deadline or auction date and time mean that if a buyer has any interest in purchasing your property or merchandise. They must do so at the designated date, time and place that the sellers choose!
Can I be assured of getting the best price for our families merchandise at auction?
At the auction you get competing bids all at once! A well promoted estate auction should result in the best price. The price bidders pay at auction is solely at their discretion and on what buyers will pay in a competitive bidding format at that specific time, under the terms of the auction, and a host of other influences on the bidder. Sometimes economic conditions favor buyers, sometimes sellers.
Do I have to sell if I get a low price?
The answer depends upon the type of auction you have. Many auctions today are conducted under what is called “Absolute Auction”. With an Absolute Auction the seller must sell to the highest bidder. Consequently, some of the most successful auctions are Absolute Auctions. Most estate auctions are Absolute auctions as heirs have determined they have no use for the property or merchandise and an absolute auction is their best option. Our auction professionals will advise you whether or not an Absolute Auction is right for you. Auctions can be conducted with “Reserve”. An auction with reserve gives the seller the opportunity of refusing the high bid.
How do I know when is the best time to sell in?
Your auctioneer will advise you on the best time to sell at auction. The fact is you have to sell in whatever type of market conditions that exist at that time. The good news is that auctions work in most markets.
How long will it take to prepare for my auction?
In most cases 4 to 8 weeks are needed.
When will I get my money if I sell at auction?
This is determined in the auction listing contract but it will typically be 2 to 4 weeks after your auction sale.
How do I get started?
Call an auction professional at Rogers Realty & Auction Company today!