Auction Sale

Another option for selling a property FAST, where the property has at least 30% equity or more, is through an Auction Sale.

_____________________________________________________________________________

Typically the way this works is that an investor will get the property under contract for up to 70% of the as-is fair market value, and will then auction and/or market the property aggressively to prospective buyers he may have already identified. Alternatively, a licensed auctioneer can work with the property owner to set a reserve price, typically at up to 70% of the as-is fair market value, and then auction the property, through a public auction, to the highest bidder that bids above the reserve.

The advantage of working with an investor is that the owner is not required to pay for the marketing of the property (which can cost 5-10% of the value of the property) and the owner does not have to pay sales commissions or possibly even the closing costs (which can total 6-15% of the cost of the property). The advantage of working with an auctioneer is that any proceeds after marketing, commissions, and closing costs go back to the seller.


Auction Sale Example

- Current Appraised Property Value: $500,000

- Existing loan(s) payoff: $330,000

- Sales/Reserve price: $350,000 +

In this example one of two scenarios can occur:

1) An investor gets the property under contract for $350,000 and attempts to wholesale the property quickly to a list of pre-qualified buyers within an option period (usually 60 days). If the investor can wholesale the property within the option period, 

the sale is completed, the investor takes care of all expenses and closing costs, and any premium above the option price of $350,000 goes to the investor. If no buyer is found, no sale occurs, and the seller is not out any costs or expenses.

2) Alternatively, a licensed auctioneer can auction the property for the seller. In this scenario, the auctioneer collect 5-10% of the property value from the seller and spends this money on marketing. After the marketing, the property will be auctioned off to buyers found by the marketing, with bids starting at the reserve price of $350,000. If a buyer is found and bids above the reserve price, the property is sold and the seller receives any proceeds remaining after closing costs and commissions (which can be 10% or more) and of course the costs of the marketing. If no buyer is found, no sale occurs, however the seller is NOT reimbursed the marketing expenses.

IT'S ALL ABOUT HOMES, LLC can manage this entire process for you by contracting to buy your property from you, and marketing it to sell quickly to a list of pre-qualified buyers, within the option period (usually 60 days). Contact Us to discussion this further.


Auction Sale Advantages and Disadvantages

The advantage to this strategy is that several people may be drawn to the property due to its low reserve price, causing a competitive bidding situation when the auction day comes. If this happens, the property owner may achieve the goal of getting the property sold quickly at a price somewhere between the reserve price and the fair market value.

The disadvantage to this strategy is that in a slow market, it's very possible that no one will bid on the property or perhaps only a few people may bid and you may only hit the minimum reserve price at best.

If you would like to explore this option further, just Contact Us  


Common Questions about Auction Sales


Question:
 Does auctioning work?

Answer: Maybe, maybe not. Like lottery tickets, it works if you are lucky, and it may be a good option to explore, if you have tried to sell traditionally, without luck, and would like to sell quickly. It also works well for certain types of properties (like HIGHLY unique properties) in certain types of markets.

If you are interested in pursuing an auction option, we suggest you try this with us, IT'S ALL ABOUT HOMES, LLC, and if it is not successful, you are not out any money, and can then explore hiring a licensed auctioneer.

If you would like to discuss this further, Contact Us


  Question:
 Do you need a license to auction a property?

Answer: Laws regulating auctioning vary from state to state. In most cases, if you hire an auctioneer to auction your property for you, they will be required to have a license. In some cases, a Realtor may be allowed to auction your property. In the scenario in which you contract to sell your property to an investor, such as IT'S ALL ABOUT HOMES, LLC, the investor will get the property under contract, and will then use their own methods of marketing the property to pre-qualified buyers that may or may not include the formal auctioning process.

Contact Us

 

Privacy Policy

SellMyHm.com Privacy Policy

This statement discloses the privacy practices for SellMyHm.com. 

We takes privacy very seriously. Any user information we collect is considered private and is not used or shared, except as permitted herein, without the user's permission. We use personal information to provide the best quality service possible.

Information Collected:

SellMyHm collects user information from several areas including the 'New Member Registration' area (where user's name, street address, email address, the adding and editing of property information; the adding and editing of personal profiles and any surveys or contests that we may sponsor. SellMyHm may track the IP address of a user's computer or place a "cookie" in the browser files of a user's computer. This is required by our services to provide automated features.

Use of Information Collected:

Collected information helps us better understand its users' needs in order to improve its product and service offerings. Email addresses are used by members to login to the SellMyHm service.

  • Your email address will not be sold to anyone.
  • Email addresses are not revealed to users of the website or 3rd party affiliates or companies
  • Users of the system may be referred to by their first name only
  • Last names are not revealed to users of the website or 3rd party affiliates or companies
  • Communication occurs through an internal messaging system to protect privacy
  • Information provided in buyer profiles or property profiles, such as property criteria, personal buying    criteria, keywords, comments, and property photos will be made available to users of the website.
  • Property profiles that have been designated as 'Public' will be available to search engines, including Google, Yahoo, and others
  • Use of Communication Tools:

    You may NOT use the communication services or other email services that we offer to send spam (i.e. unsolicited commercial email) or otherwise send content that would violate SellMyHm's Terms of Use.

    Shared information:

    Though we make every effort to preserve user privacy, we may need to disclose personal information when required by law wherein we have good faith belief that such action is necessary to comply with a current judicial proceeding, a court order or legal process served on our Web site.

    While we endeavor to work with other sites and companies with a similar respect for user privacy, we cannot be responsible for the privacy practices of other sites.

    Please be aware that in the event SellMyHm merges with a third party, or in the event all or substantially all of our assets are acquired by a third party, customer information, including personally identifiable information, will be shared and/or transferred to such third party. The information may only be used or shared by such third parties for the primary purpose for which the information was originally collected. If such third parties, or if SellMyHm for its own business needs, desire to use the personally identifiable information for another purpose, you will be notified prior to the information being used for a new purpose, and you will have the opportunity to opt out of such new use of your personally identifiable information.

    Security of personal information:

    SellMyHm's clients and their personal information are considered to be our greatest asset and thus their privacy is treated with the utmost regard and respect. We'll take every reasonable precaution to secure personal information within both its computers and its physical premises.

    We follow generally accepted industry standards to protect the personal information submitted to us, both during transmission and once we receive it. No method of transmission over the Internet, or method of electronic storage, is 100% secure, however. Therefore, while we strive to use commercially acceptable means to protect your personal information, we cannot guarantee its absolute security.


    Testimonials:

    We post customer testimonials on our web site which may contain personally identifiable information such as the customer's name. We do obtain the customer's consent to post their name along with their testimonial prior to any posting of such testimonial.

    Opting-out, editing, updating or deleting personal information:

    SellMyHm utilizes email as a vital and primary communication channel with registered users and customers. As a registered user/customer, you hereby acknowledge and grant SellMyHm the permission to communicate with you via email (as well as other communication channel such as phone and fax) for any purposes SellMyHm determines to be relevant including, but not limited to, system messages, product updates, service announcements and other marketing messages. SellMyHm will use best efforts to honor customers request to opt out of marketing messages, but under no circumstances will SellMyHm have any liability for sending any email to its registered users/customers.

    You may correct or update your personally identifiable information by making the change on your member profile page. 

    Changes to this Privacy Statement:

    SellMyHm reserves the right to modify this privacy statement at any time, so please review it frequently. If SellMyHm decides to change its privacy policy, we will post those changes to this privacy statement, the homepage, and other places we deem appropriate so that you are aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it.

    Make a Free Website with Yola.