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Glossary of Auction Terms, click
here
Q. Why should I sell my property using the Auction Method?
A. To accelerate the sale of your property by generating additional
consumer interest and activity. Advertising a property for auction
creates a sense of urgency, bringing all interested parties together
on one specified day. An auction typically provides multiple bidders
competing to buy, often bringing higher revenues than negotiating
with a single buyer. Non-contingent contracts and 30-day settlements
are required of the buyer of your property. This means a quick transaction
for you!
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Q. Can I attend an auction before agreeing to sell my
home through the Auction Method?
A. Certainly. In fact, we encourage your attendance so you can experience
a live example of the auction process firsthand. Check our Upcoming
Auction schedule or give us a call. Remember, each and every auction
is different, so you cannot necessarily assume that your auction
will be like any other auction you may have attended.
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Q. I am not in financial trouble, and I am concerned about
what people may think if I should auction my property. Can you give
me any insight on this?
A. You are not alone in your concerns. Many people are afraid of
the old, outdated perception of auctions that some people have.
There are great differences in the marketing and the public image
of a voluntary, 'by choice,' auction, such as ours, versus a trustee
sale. For example, some owners may offer financing on certain auction
properties. Our auctions are positive, enthusiastic events designed
to generate competitive bidding to secure the highest possible market
price for your property. If you are in a situation where you need
to sell your property, but you owe more on it than it is worth,
we can represent you in negotiating and resolving the situation
with your lender.
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Q. I am concerned about the net amount I will realize
from the auction, and my ability to cover my existing mortgage.
What advice do you have to offer on this?
A. This is a valid concern for many sellers in today’s marketplace.
We understand your concerns and your desire to cover the existing
mortgage on your property. Auctions are designed to accelerate the
sale of property by determining what the market is willing to bear.
On auction day, the market will determine what valuation is acceptable
for your property. We will customize a program for you that includes
negotiations with your lender, if necessary. Remember, if you have
a problem with your loan, your lender does as well.
The fact that you are selling at auction does not change the market
value of your property. In short, if the market value is at a level
below your existing mortgage, then that is the price that we have
to work with regardless of whether we use the traditional method
or the auction method to sell your property.
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Q. Will we still have to consider contingent contracts?
A. Everything that we sell at auction is sold "as is"
and "non-contingent," with a 30-day projected settlement
date and the buyer paying all allowable closing costs associated
with the sale, unless otherwise negotiated.
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Q. Where will the auction of my home be held?
A. We hold most auctions on-site. By being on-site, bidders are
constantly reminded of the positives associated with that particular
property, which, in turn, can encourage a higher bid. We have other
accelerated marketing programs to offer as well for sellers who
are in unique circumstances.
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Q. Who pays the auctioneer fee?
A. The auctioneer is paid via the buyer's premium which is added
to the buyer's final bid. The seller is only required to invest
in the advertising and 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 you at closing.
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Q. Does "as is" mean that I do not need to disclose
any known defects?
A. Though we are selling "as is," we must abide by applicable
state and federal laws. The Broker-Auctioneer will offer full disclosure
to all interested parties in accordance with the law.
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Q. How do I sign up for auction?
Call us today to set up an appointment to view your property and
determine whether it is appropriate for the Auction Method of sale.
If your property is listed with a Realtor¨, ask them to refer
your listing to Pacific Auction Exchange and the Realtor¨ will
be compensated. After signing with us, expect a three to four week
advertising campaign prior to your auction day. Then expect to close
in 30 days or less with no contingencies.
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Q. The property is priced below the market right now.
What is this going to mean if I register it for auction?
A. We find that often price is not the issue in determining why
a property has not sold. Many times the reason that a property has
not sold is that there has not been adequate traffic to view the
property, and therefore, not enough interest has been generated
in order to sell the property. In other words, it has become "stale"
on the market. The auction process is the best way to revive interest
in the property and instill the excitement for it that will result
in a positive sale.
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Q. What types of property do you sell?
A. We auction all types of real estate, from condominiums, co-ops,
townhouses, single-family dwellings, land, vacation properties,
commercial and investment properties to high-end premier properties
and country estates. Auctions have been successful in all of these
categories.
Glossary of Auction Terms
Absolute Auction: An auction where the property
is sold to the highest qualified bidder with no limiting conditions,
contingencies or amount.
"As Is": Selling the property without
warranties as to the condition and/or the fitness of the property
for a particular use. Buyers are solely responsible for examining
and judging the property for their own protection. Otherwise known
as "As Is, Where Is" and "In its Present Condition."
Auction: A method of selling real estate in a public
forum through open and competitive bidding. Also referred to as:
public auction, auction sale or sale.
Auction Listing Agreement: A contract executed
by the auctioneer and the seller which authorizes the auctioneer
to conduct the auction and sets out the terms of the agreement and
the rights and responsibilities of each party. This is also known
as the Listing Agreement.
Auction Marketing: The method of marketing real
property utilizing the auction method of sale.
Auction Price: The price of a property obtained
through the auction method of marketing.
Auction Value: The price which a particular property
brings in open competitive bidding at public auction.
Auction With Reserve: An auction in which the seller
or his agent reserves the right to accept or decline any and all
bids. A minimum acceptable price may or may not be disclosed and
the seller reserves the right to accept or decline any bid within
a specified time.
Auctioneer: The person whom the seller engages
to direct, conduct, or be responsible for a sale by auction. This
person may or may not actually call the auction.
Bid: A prospective buyer's indication or offer
of a price he or she will pay to purchase property at auction. Bids
are usually in standardized increments established by the auctioneer.
Bid Caller: The person who actually "calls,"
"cries or "auctions" the property at an auction,
recognizing bidders and acknowledging the highest bidder. Commonly
known as the auctioneer.
Bidder Number: The number issued to each person
who registers at an auction.
Bidder Package: The package of information and
instructions pertaining to the property to be sold at an auction
event obtained by prospective bidders at an auction. Sometimes called
a bidder packet or due diligence package. The bidder package includes
property disclosures plus the terms and conditions of the property
sale.
Broker Participation: An arrangement for third-party
real estate agents/brokers to register potential bidders for properties
being sold at auction for a commission.
Buyer's Premium: An advertised percentage of the
high bid or flat fee added to the high bid to determine the total
contract price to be paid by the buyer.
Carrying Costs: The costs involved in holding a
property i.e., insurance, taxes, maintenance, management.
Conditions of Sale: The legal terms that govern
the conduct of an auction, including acceptable methods of payment,
terms, buyer's premiums, possession, reserves and any other limiting
factors of an auction. Usually included in published advertisements
or announced by the auctioneer prior to the start of the auction.
Due Diligence: The process of gathering information
about the condition and legal status of assets to be sold.
Hammer Price: Price established by the last bidder
and acknowledged by the auctioneer before dropping the hammer or
gavel.
Minimum Bid Auction: An auction in which the auctioneer
will accept bids at or above a disclosed price. The minimum price
is always stated in the brochure and advertisements and is announced
at the auctions.
Opening Bid: The first bid offered by a bidder
at an auction.
Preview: A specified date and time the property
is available for prospective buyer viewing and audits. Also known
as an Open House or Inspection.
Reserve: The minimum price that a seller is willing
to accept for a property to be sold at auction. Also known as the
reserve price.
Reserve Auction: An auction in which the seller
reserves the right to establish a reserve price, to accept or decline
any and all bids or to withdraw the property at any time prior to
the announcement of the completion of the sale by the auctioneer.
See also Auction With Reserve.
Terms and Conditions: The printed rules of the
auction and certain aspects of the Purchase & Sale Agreement
that are read and/or distributed to potential bidders prior to an
auction sale.
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Call Ron Blake at 858-755-1916
or 1-888-712-DONE toll free
Or Click here to visit our CONTACT page!
Pacific Auction Exchange of San Diego
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