Realtors

As a Licensed Realtor, How Do I Get Involved In Auctions?
You have a lot of options to put your license to work for you in the area of real estate property auctions:

  1. Agents/brokers refer clients or customers to Superior Auction Group
  2. Become a cooperative agent/broker
  3. Become a listing agent/broker (co-broker)

1: Agents/Brokers Referring Clients to Superior Auction Group
This option is one the easiest ways to generate referral income! If you find clients that would benefit from the auction process, simply refer the client to Superior Auction Group, who takes care of the entire transaction and pays you a referral fee. It’s that easy!

Responsibilities of Referring Agent/Broker:

  • You can assist the seller by analyzing their individual needs, property details, and market conditions to determine if they are good candidates.
  • Refer seller to professional team of Superior Auction Group.
  • If a negotiated sale listing agreement already exists, you can cancel the previous listing and allow it to be superseded by an auction contract.
  • Send notice to MLS stating that the property will be sold at public auction.
  • Collect referral fee from the sale when the property closes.

2: Cooperative Agent/Broker
If you as the agent would like to stay more involved than simply referring the client then this option may be for you. A cooperating (selling) agent is any agent/broker who sells a property. This agent could be a “sub-agent”, a buyer’s agent or dual agency.

A cooperating agent or broker registers a buyer who purchases property offered through an auction and earns a commission established by the auction firm. This agent or broker accompanies the bidder to pre-auction events and the auction, registers the buyer to bid, and receives a portion of the commission.

Responsibilities of Cooperating Agent/Broker:

Before the Auction

  • Call auction team to be register your client.
  • Attend pre-auction open houses with prospects.
  • Help clients determine the market value of the property prior to sale (check comparables, property indebtedness, title, liens, market conditions, and read the due diligence or bidders packet).
  • Learn the rules necessary to earn a commission for registering a successful buyer.
  • Learn the terms of the auction.
  • Register bidder prior to the auction pursuant to the Superior Auction Group requirements.
  • Assist bidder with auction strategy.

During the Auction

  • Attend the auction with clients.
  • Help them with registration.
  • Assist prospect with bidding strategy.
  • Accompany successful bidder with contracts.

After the Auction
Collect commission check when property closes (usually handled by title or escrow company).

Types of Agreements Used in This Situation

  • Buyer registration at open houses
  • Broker registration for prospect representation

3: Listing Agent/Broker (Co-Broker)
A listing agent/broker is an agent of the seller who markets the seller’s property and represents the seller during the sale and at the closing. In a sale by auction, the listing agent/broker manages many traditional real estate functions and shares the commission based on the amount of involvement and the relationship defined by the parties involved. This relationship is beneficial for auctioneer and agent when services by a local auction or real estate company are needed or when an agent identifies a potential auction situation for a seller and the agent is not an auctioneer.

Responsibilities of Listing Agent/Broker

Before the Auction

  • Provide the lead (in most cases).
  • If a negotiated sale listing agreement exists, cancel the previous listing to be superseded by an auction contract.
  • Send notice to MLS stating that the property will be sold at public auction.
  • Provide a fact sheet on the property.
  • Perform market analysis.
  • Provide local licensing information.
  • Complete due diligence.
  • Order and obtain sign, photographs, and keys.
  • Obtain bids for maintenance and supervise property management.
  • Hold open houses for inspection.
  • Assist bidders with pre-qualification process.
  • Provide feedback (progress reports) to the seller.

During the Auction

  • Assist auctioneer in bid process as needed.
  • Accompany buyer to contract signing.

After the Auction

  • Help buyers with post-auction inspections, insurance, financing, etc.
  • Assist in pre-closing events.
  • Attend closing.
  • Collect commission check when the property closes.

Types of Agreements Used in This Situation

  • Listing agreement between the broker, Superior Auction Group, and seller
  • Auction contract to supersede listing agreement
  • Pre-auction sales contracts and addendum
  • Prospect registration forms

The Superior Auction Group team of auctioneers and Realtors are available to assist in your buying selling needs today. Please call us at (614) 273-7778 or email us at info@superiorauctiongroup.com.

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