Seller FAQs

Do auctions depress values?
Actually the opposite is often the case. Auctions can determine the true market value of a property through competitive, public bidding, and when positioned and marketed correctly create enthusiasm and excitement for a property because the bidders know that the seller is motivated!

Can I be certain of getting Fair Market Value?
An appraisal or broker’s pricing is merely an informed opinion, and generally designed to “test the waters” or create a starting point for negotiations, but they are not an offer to buy. For example, our stock market in essence, is hinged around the “auctioning” of shares and that process determines what investors think that company is worth that day. Things are worth what people are willing to pay for them, and there is no more public or absolute way to determine that than auction.

How long does the selling process take?
Auctions can provide a quick sale. From listing signature to auction day, is usually about 30 days. Closings usually take place within 30-45 days after the auction, but Superior Auction Group has closed properties in under 10 days! Sellers set the terms and conditions of an auction, and this set date and time allows the seller to effectively plan for the sale rather than engaging in an open-ended, traditional process through a conventional listing that could stretch over many months.

Who set the terms and conditions at auction?
The seller sets the terms with advice from the auction representative. Some terms included in the auction contract are deposits, non-refundable earnest money, timelines, language in the purchase contract, etc.

Aren’t all auctions for owners who are in financial distress?
Absolutely not! The auction method simply caters to people that are ready to buy or sell, and not necessarily the “browser” that is thinking about maybe buying or selling. For example, our stock market in essence, is hinged around the “auctioning” of shares and that process determines what investors think that company is worth that day. A Ferrari or a Picasso painting is sold at auction, and the the sellers are not in duress, but rather have chosen an accelerated method of marketing to procure qualified buyers that are ready to buy. Properties sold at foreclosure auctions, held at county courthouses, involve owners who are in financial distress. Superior Auction Group heavily market to the general public and real estate agent and broker community to create urgency, excitement and ultimately competitive bidding.

Are all properties suitable for auction?
While most properties have the potential for doing well at auction, each property and circumstance is different, and that is where the professionals at Superior Auction Group come in. The team has conducted hundreds of property auctions and know the investment community, the areas, the results of other recent sales, and will be happy to give you the professional advice that is required to determine if the property is suitable for auction.

What factors determine the success at auction?
As in traditional real estate, desirability of the property, location, condition, surrounding properties and more will contribute the success of the auction. But also an aggressive marketing and advertising plan to prospective purchasers, will add to the potential for success. The Superior Auction Group team can also help the seller determine the type of auction that will garner the most attention and be best suited to the sellers’ needs.

How will my property be marketed?
Auction marketing typically consists of print advertisements, targeted direct mail, e-mail marketing, property signs, and web listings on our website with over 100 syndicated sites, as well as our online bidding platform. Basically, it all comes together to create more exposure to the right audience!

Can I auction my property if it is listed with a broker?
Yes. Remember, your Broker doesn’t earn a commission until the property sells. If your listing is nearing its end, your Broker should be exploring methods to accelerate the sale and earn that commission an very often Superior Auction Group can be the solution that everyone has been looking for to selling the property.

Does “as is” mean that I do not need to disclose any know defects?
No! This is still a real estate transaction and all local, state and federal laws apply including disclosures.

Who pays the Auctioneer/Brokerage commission?
A buyer’s premium is added to the buyer’s final bid to establish contract price. There is no “commission” charged to the seller. The seller is only required to invest in the advertising and other pre-negotiated expenses of their auction event. This way you can be sure you receive the maximum advertising exposure possible for your property. If all the advertising investment is not fully used, whatever is remaining will be refunded back to the seller at closing.

Is the “Buyer Premium” method accepted by the public?
The entire auction industry has been charging buyer premiums for over twenty years, and not just with real estate auctions, but with every type of auction. Buyers expect it and budget for it.

What are the various types of auction?
There are three different types of auctions: Absolute auction, reserve auction, and minimum bid.

Absolute auction is when the seller is legally required to sell the property at the auction regardless of the final bid price. The main advantage of an absolute auction is that it generates maximum responses from the market. Since a sale is guaranteed, regardless of the price, buyer excitement and participation are heightened. As a result, the price of the real estate can be maximized. These are also referred to as “no-reserve” auctions.

Reserve auction is when the seller reserves the right to reject the final bid price. The chief advantage of this type of auction is that the seller isn’t obligated to accept a price other than the reserve or minimum price that the seller believes to be acceptable.

Minimum bid is a variation of a reserve auction. The suggested opening bid that is published must be a number that grabs a potential buyer’s attention. Typically, this number should be well below the market value or last exposed price.