Benefits to Sellers

• Seller knows exactly when the property will sell and close
• Buyer signs a no contingency contract to close within 30 days of auction
• Creates competition among buyers...auction price can exceed the price of a negotiated sale
• The aggressive marketing campaign increases interest and visibility
• Buyers come prepared to buy
• Seller doesn’t have to make repairs and paint to get ready
• Assurance that the property will be sold at true market value

Auction Process

A real estate auction is the sale of real estate property in "As-Is" condition for the fair market value, using a competitive bidding process.
"As-Is, Where-Is" is a legal term and concept used to disclaim liability for an item being sold. "As-Is, Where-Is” denotes that the seller is selling, and the buyer is buying, a property or item in whatever condition it presently exists, and that the buyer is accepting, the item "with all “patent and latent defects," whether or not immediately apparent.

The following information will provide a quick overview to help sellers learn more about the auction process.

Property Information

Prior to selling real estate by auction, it is important to have sufficient knowledge of the property as well as knowledge of the current market. Arkansas Auction Group & Realty conducts due diligence by gathering facts and information about property and includes it in materials available to all bidders.

Auction Proposal

Once information is gathered, Arkansas Auction Group & Realty develops an auction marketing schedule and process of how and where the property will be marketed and advertised. This will include marketing and auction fees, NON-refundable deposit from buyer and proposed closing date.

Marketing Plan and Budget

One of the most powerful success factors in using the auction method of marketing is an accelerated, proven, and comprehensive marketing plan. The marketing program is tailored for each property since no two properties and locations are the same. Due to the accelerated  time in marketing a property, the marketing schedule will be specific to your property and target the buyers looking for your specific property looking for the most qualified and perspective buyers. Marketing efforts typically begin for (4) to (6) weeks prior to the sale date. In a traditional listing, most agencies list your property for a lengthy listing period and place a sign in your yard. When selling at Auction, you, the seller can schedule the date and time your property will be offered at public auction and know you will see a cash offer that will close in 30 days keeping your cost-to-hold down to a minimum.

Buyers drive by “For Sale” signs daily and think, if we wait them out the price will come down. When an “AUCTION” sign goes up, those buyers realize they have to get prepared to buy the property on the date and time on the sign and get off of wavering whether to make an offer. Most instances, properties will bring market value if not more using the auction method of marketing.

The Property Information Package (PIP) is a comprehensive document that outlines important details of the property. Real estate taxes, square footage, number of bedrooms and baths, size of lawn or acreage, school district, year built, POA dues if any, and any other information discovered in the process of gathering information are included in the PIP. By providing this information, bidders are given almost all the information to take to their bank and get pre-approved to finance if they want to. It further gives them the surety of knowing what they are purchasing and hopefully resulting in a higher contract price for the seller. The PIP is distributed to all qualified potential buyers. Also included in the packet is a copy of the real estate contract the buyer and seller will both sign.

Before the Bidding Begins

The property being offered will be open at least one (1) hour prior to opening bids. The auction begins promptly at the appointed time with opening remarks summarizing the terms of sale, the methods of bidding, and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the auctioneer answering any final questions.

Working with the Bidder Assistant

The Bidder Assistants are auction staff members who are positioned among the auction attendees to help all bidders communicate their offers to the Auctioneer. Bidders place a bid by raising their bidder card. It is a myth that bids can be made accidentally by scratching one's nose or similar accidental movement. If a bid was not intended, the mistake is corrected by simply notifying a Bidder Assistant. Any tie bids or other issues regarding who has the high bid are always resolved by the Auctioneer, who has complete and final authority.

During the Auction!

From the first bid, things move quickly with bidders offering their bids up to the price they are willing to pay. It is not necessary, nor customary, for the Auctioneer to slowly announce, "Going once, going twice, etc." When it is determined that the final bid has been made, the Auctioneer will identify and congratulate the high bidder. In a "subject to confirmation" auction, the seller retains the right to accept or reject the high bid within a specified time after the auction. If the auction is for a single property such as a home, this concludes the auction and the buyer simply executes the Real Estate Purchase Agreement and makes the required deposit.

Closing

Closing on the property typically takes place within 30 days from the date of the auction. Closing is not contingent on financing, appraisals, or inspections. In the event a buyer changes their mind or does not show up for closing after the seller has agreed to accept the highest bid and signs the contract. At that time, the buyer will forfeit their deposit.

Benefits to Buyers

• Buyers determine the purchase price
• Smart investments are made as properties are purchased at fair market value through competitive bidding
• The buyer knows the seller is fully committed to sell
• In multi-property auctions, the buyer can view many properties at the same time
• Auctions eliminate long negotiation periods
• Auctions reduce time to purchase property
• Auction and closing dates are known in advance
• Buyers know they are competing fairly and on the same terms as all other buyers
• Buyers receive comprehensive information on the property via the Property Information Packet

Auction Process | Buyers

Buying real estate at auction is easy. The following categories will provide a quick overview to help educate you about the auction process.

Do your homework.

The 30 days leading up to the auction is the time to find answers to your questions, attend open houses, and determine what type of budget you have. The actual auction is simply the time to offer the price you are willing to pay for your properties of interest.

A real estate auction is the sale of real estate property in "As-Is" condition for the fair market value, using the competitive bidding process.

All auction properties are sold "As-Is" meaning the properties are selling without warranties as to its condition and/or fitness of the properties for a particular use. You are solely responsible for examining, inspecting & evaluating the properties for your own protection. Contracts are not contingent on buyer or lender inspections. You should make all desired inspections during the available viewing times.

A real estate auction is the sale of real estate property in "As-Is" condition for the fair market value, using a competitive bidding process.
"As-Is, Where-Is" is a legal term and concept used to disclaim liability for an item being sold. "As-Is, Where-Is” denotes that the seller is selling, and the buyer is buying, a property or item in whatever condition it presently exists, and that the buyer is accepting, the item "with all “patent and latent defects," whether or not immediately apparent.

Although some consumers feel the term "As-Is, Where-Is" is a red flag, the opposite is generally the case in most real estate auctions. Arkansas Auction Group & Realty will provide bidders with vital information on the property, which may include: a title search, surveys, zoning, environmental reports, financing, and disclosures. This information should give you the confidence to participate in an "As-Is, Where-Is" auction. Ultimately, it is your responsibility to do your own inspections and due diligence prior to bidding.

Think fast!

The auction itself moves quickly. If you are a first-time attendee, you may be surprised to learn that it takes a short period of time, usually less than 3 minutes, to sell a home once the property is introduced and the bidding begins. Having your maximum bidding price in mind and preparing to bid accordingly takes the feeling of intimidation out of the process.

Registration, Please

There will be a designated time prior to the auction when you can register for a buyer number. A valid driver's license or proper identification is required, and a registration form completed. You will be expected to show proof of the mandatory deposit. Generally a cashier's check or cash is sufficient to secure a bidder number, but in some instances, an additional earnest money deposit could be required. This is normally in the form of a personal check up to a percentage of the purchase price. Familiarizing yourself with the terms and conditions of the auction will ensure that registration on the day of the auction will be quick and trouble-free.

In addition, registration is required should you choose to bid online. You must complete the registration form, provide information, and accept the Terms and Conditions of Sale. If you are interested in bidding on more than one property, required funds for EACH property must be submitted. Registrations will be processed and notification will be sent to you within 24 hours of the Deposit(s) being secured. You are bound to the same Terms and Conditions of Sale as those who physically attend and bid at the auction.

Before the Auction

The auction begins promptly at the appointed time with pre-auction announcements summarizing the terms of sale, the methods of bidding, and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the Auctioneer answering any final questions. If questions are not taken by the Auctioneer, another licensed real estate agent will be available to answer all questions.

Working with the Bidder Assistant

The Bidder Assistants are auction staff members with a real estate license who are positioned among the attendees at the auction. They are there to assist the auctioneer, spot your bid and assist you with information to help you in your buying decision. You may place a bid by raising your bidder card. It is a myth that bids can be made accidentally by scratching your nose or similar accidental movement. If you did not intend to bid, simply inform one of the Bidder Assistants or the Auctioneer and the mistake will be corrected. There are NO TIE BIDS. The bidder that the live auctioneer has will be the winner in the event someone thinks they are the high bidder. Make SURE if you want to be the high bidder you have the auctioneers attention or work with a bidder assistant. The Auctioneer has the final say when the hammer falls and announces the high bidder.

SOLD!

From the first bid, things move quickly with bidders offering their bids up to the price they are willing to pay. It is not necessary, nor customary, for the Auctioneer to slowly announce, "Going once, going twice, etc." When it is determined that the final bid has been made, the Auctioneer will identify and congratulate the high bidder. The high bidder simply executes the Real Estate Contract and makes the required Deposit. In a "Subject to Confirmation" auction, the Seller retains the right to accept or reject the high bid within a specified time after the auction.

Closing

Closing on the property typically takes place 30 days from the date of the auction. Closing is not contingent on financing, appraisals, or inspections.

If the property is being sold at Absolute Auction, a title search and commitment will be done prior to auction. In these cases, the property can normally be closed within 7 days.