Frequently Asked Questions
What is an Absolute Auction?
An absolute auction is a tool that sellers use to leverage the buyer’s ability to purchase their property against the market’s demand for it. Absolute means a property is selling without a reserve or minimum bid price. Selling a property absolute encourages every potential buyer to react and participate within the seller’s timeline and will produce “fair market value ” for their property since the buyers know that it is definitely going to sell that day. This is an excellent way to maximize your property’s potential and bring the market to you!
What is a Reserve Auction?
A Reserve Auction is an alternative to the Absolute Auction. In this format, the property is offered at public auction with a seller’s reserve or the minimum price they are willing to accept. This price is not disclosed to the public. Sellers often times do not have the capability of selling property Absolute, as they may have an outstanding debt or mortgage. The reserve bid is established during the signing of the auction marketing agreement.
How do you determine if an Auction is the best option for you and your assets?
First, always feel free to call or email us with your questions. You never know until you ask and we are committed to serving you. There are no costs or obligations to discuss your options and formulate a plan. Many times just answering a few simple questions can determine whether an auction is the best tool to fit your needs. Do you have a need or desire to sell your property or assets in a expedited process on a day of your own choosing rather than waiting on the market to come to you? If so, you can start by asking yourself a few questions such as the ones listed below.
What if I have a highly desirable property such as Agricultural or Ranch Land that is new to the market having never been priced or offered for sale?
This can be the perfect situation. Often times there is such a high demand for a property that has never before been offered, that people are willing to pay above the current market price just to ensure they can purchase such a property. With the skyrocketing demand for secure, income producing investments, such as production Row Crop Land, how do you price something that desirable in the market? Auction! It is the only way to know what the true market value is. This way as a seller, you never have to worry that you may have sold too cheap or that you upset a friend or family member who did not get a chance to buy. The auction allows for everyone to participate and decide on their own, to what point they are willing to purchase. Many times with market fluctuations of highly sought after land, it is difficult as a seller to know exactly how or where to price your property for an outright traditional sale. As an example of pent up demand, we recently sold a property new to the market for 167% of appraised value, to a cash buyer. How is that possible? Auction!
What if I have an Estate, Inheritance, Gift or Investment and need to convert it into cash or capital for other interests?
There simply is no better way to expedite this process than with an auction. Our streamlined method offers a turnkey service that keeps you informed from start to finish. With full reporting we will make this fully transparent process as easy as signing a contract, reading your email for updates and receiving a check.
What about a property that has been on the market for an extended time with no results?
Not always, but many times an auction is just the answer. So many times buyers in the traditional market tend to wait out a property that is for sale and as time passes, may even forget about it. As markets fluctuate, sellers often times do not have any real knowledge of where to establish their own properties sale price and tend to base if off of another listed one. In most cases, the “well mine has to be worth more than theirs” mindset ends up over pricing a property–since neither property has actually sold yet. In the meantime, the market may have changed or a seller’s incentive to sell, but they have exhausted all of the initial buyers with a price that was above the market value.
An auction tends to attract a new group of buyers as well as interested ones from the past. To catch the attention of potential buyers we develop and tailor a high profiled marketing campaign targeting the specific date the property will actually sell on. Determined and excited buyers sense the interest of competition and form a urgency to purchase before the property gets away!
What if my property is already listed? Is it even possible to have an auction?
In most cases…Yes! While naturally the simplest scenario is an unlisted property, we actually sell a great number of properties through referrals from local brokers and sellers who are looking for another option. We do this by transitioning the property into an auction and bring a fresh new approach that markets your property allowing it to sell at an “event” on the date of your choosing. We use our years of experience to ensure a seamless process that gets you the results you want. Our number one priority is to get your property sold. Therefore when we succeed, everyone wins!
What if I am in a financial burden and possibly facing bankruptcy or foreclosure?
While we all hope this is never the case, many times if contacted at the onset of such, we are able to formulate a plan to resolve your issues without the fear, embarrassment and financial damage many people worry about. Our plan allows for a seller to work with their financial institution and seek out a solution that may even leave extra money in their pocket. You can rest assure that your privacy is of the utmost importance to us and your personal information will be held in strict confidence. We understand how stressful this can be and we are here to help.
What if I have Equipment, Mineral Rights, Wind Rights or other assets?
With over 28 years of experience we have sold nearly every type of asset imaginable including Farm, Heavy, Commercial and Industrial Equipment and much more. Feel free to call or email any time to discuss your options from the largest transactions to the smallest. We appreciate the opportunity to serve you!
Is an auction always the right solution?
Many times people see the high success rates of our auctions and automatically “assume” an auction is the solution for their situation. Our success is due to the countless hours of research and due diligence we put into each project prior to signing a contract. Our project managers meet, discuss and gather as much information as possible before making a recommendation. We then advise you of a plan that we feel will best suit your needs.