Why Auction?
FOR SELLERS | THE AUCTION PROCESS | FOR BUYERS | THE BUYING PROCESS
Real Estate Auctions give buyers and sellers the opportunity to purchase and sell real estate on a given day for a price that competing buyers determine. Buyers and sellers both enjoy the auction method of marketing to establish fair market value for real estate.
Sellers are able to have their property marketed and sold quickly, while buyers are able to eliminate the lengthy contract negotiation process of traditional ‘listed’ real estate.
VersaLand combines the best in technology with years of auction tradition to bring an enjoyable and productive experience to every buyer and seller attending a VersaLand real estate auction.
Buyers unable to attend an on-site auction may enjoy the benefits of our simulcast auctions on the internet by bidding along with the action from their home or business. VersaLand LiveCast™ allows auction buyers the option of ‘virtually’ attending an auction to bid on real estate from anywhere in North America in live real-time with the other on-site auction attendees.
For agricultural, recreational, and development land buyers and sellers, VersaLand has developed a multi-parcel system known as VersaPar™. Use of the VersaPar™ system allows buyers the choice of the specific real estate parcels they most desire from a tract of land, while simultaneously maximizing the return to sellers.
Sellers know the advantages of maximizing exposure of their property. VersaLand’s Live-Cast auctions, nationwide directed marketing, and top quality people all contribute to bring buyers and sellers great results!
For Sellers
Selling Real Estate at Auction
If you are a SELLER who wants to sell real estate within an
accelerated time frame while receiving full market value of your property,
then the auction method of marketing may be for you.
The right price for your property is the one set by a competitive market. There is no faster, more direct way to discover your property’s value than with a real estate auction using an accelerated, customized marketing campaign designed to attract the greatest number of qualified buyers to bid on your real estate. Gathered in one place at one time, qualified bidders compete against each other for your property, creating an ideal selling environment that achieves total market value.Savvy sellers are rapidly realizing the many benefits, and reaping the rewards that an auction produces. Utilizing the auction method of marketing is the first choice for properties of all types, sizes, and values.
Benefits to Seller
- Buyers attend auctions informed and prepared to buy your property.
- VersaLand exclusively represents you, the Seller. We work to achieve the highest and best sales price for your real estate.
- Sellers can pay no commission! Commission fees are paid by the buyers when a Buyer’s Premium is used.
- A seller’s only fees are the advertising budget, preparation of deeds, updated abstract and title opinion.
- The speed to market of an auction reduces the long-term carrying costs of real estate including mortgage interest, property taxes, and maintenance expenses.
- Auction marketing exposes the property to a large number of pre-qualified prospective buyers. Serious buyers attend auctions.
- Property is sold in an accelerated time frame, typically within 4-8 weeks, with closing within 30 days of auction date.
- Creates competition among buyers - the auction price can exceed the price received from a negotiated sale
- Auction gives all interested buyers a sense of urgency. Buyers’ focus is on your property, they must act now or lose an opportunity to purchase
- Seller sets the date and time of auction, terms and conditions of auction, and sets the closing date
- VersaLand creates an aggressive marketing campaign that builds increased interest and visibility - a huge advantage of the Auction Method of Marketing!
- Interest and awareness of your property is increased with buyers.
- VersaLand has contacts with the individuals and corporations most likely to be interested in purchasing your type of real estate. Our targeted marketing brings the exact buyers interested in your property!
The Auction Process
The steps leading to a successful real estate auction:
- An initial consultation is set up when you call a representative of VersaLand Real Estate Auctioneers.
- An on-site inspection and evaluation of your property will be made by your VersaLand representative.
- Our auctioneer will present you with a written proposal that details your auction date, location, time, and advertising costs. The proposal also details the Buyer’s Premium paid by buyers, all auction-related expenses and other matters.
- After the terms in the proposal have been agreed upon, a written exclusive right to sell contract is signed by seller and VersaLand Real Estate Auctioneers.
- Once you have decided to sell your property, we will begin a comprehensive advertising campaign to effectively position the property in the market place. By using signs, print media, electronic media, the internet and a direct mail campaign, we will perform a full-fledged marketing campaign that will reach prospective buyers for your property.
- Your dedicated VersaLand representative will help you determine what improvements can be made to the property to increase market value. A boost of curb appeal can be given to a home, or a multi-parcel survey can be done to increase the value of a land tract.
- On auction day our auctioneers, auction manager, designated broker, professional ringmen, and auction clerks will work together to professionally manage the auction and record all bid transactions and tract purchases. Each bidder is first registered, assigned a bid number and given an information package that aids buyers in making informed purchasing decisions.
- Prospective buyers will receive an information package at all property previews and before the auction. The information package includes a title opinion, updated abstract, purchase contract, terms and conditions and other disclosures.
- Immediately following the auction and after the seller has confirmed the sale, we execute the sales purchase contract between seller and buyer, collect the buyers non-refundable down payment and schedule a closing date within 30 days.
Direct Comparison - Auction Event vs Traditional Sale
| AUCTION EVENT | TRADITIONAL SALE |
| Begins by establishing date, location and terms of sale | Begins by establishing an “asking price” and seller must negotiate all aspects of sale |
| The advertising is extensive and very visible, exclusively featuring your property | Heavy reliance on MLS, minimal advertising and reliance on other brokers to find buyers |
| Marketing period is accelerated to 60 days or less | Property may remain on market for months or years |
| The property is showcased throughout the entire marketplace and freezes other sales | The property is one of many being advertised and shown |
| All buyers are forced to act on your time schedule, date, time and place | Lacks the ability to motivate buyers, forcing you to wait for their schedule |
| Auction creates a sense of urgency | Price reduction commonly used to create buyer interest and activity |
| No limit on upside potential. Realizes the property’s fair market value. | Upside potential limited by asking price |
| Eliminates guesswork in determining the asking price of the property | Seller risks overpricing and thus, property sitting on the market, or under pricing and selling too cheap |
| Presets all conditions of the sale, thus eliminating all negotiations | The seller is forced to negotiate all aspects of the sale |
| Buyers compete to own and all offers are presented at the auction | Multiple offers at one time are rare |
| Property sold in 60 days and closes in 30 days thus eliminating expensive carrying costs | Mortgage payments, taxes, insurance, etc, continue until property is sold. Length of time to sell is unknown |
| Secures a contingent free contract | Normally contingent upon buyer’s financing, inspections, appraisals, etc. |
| Non-refundable down payment money, all cash closing | Refundable earnest money, buyer can easily back out |
| The most desirable division of property has a dramatic impact on marketability | Property is seldom divided, therefore limiting the number of buyers |
| Seller pays cost of advertising expense and preparation of deeds. Buyers pay commission, survey, and all closing costs. | Seller pays commission and closing costs are negotiable. |
For Buyers
Buying at Auctions
Auctions allow BUYERS to quickly, easily, and effectively purchase real estate at fair market value. Lengthy and difficult negotiations with sellers are completely eliminated. Buyers have the opportunity to purchase a specific piece of real estate, with pre-determined terms, on a set date and time. The only variable to be determined is price, of which competing buyers have complete control. Pre-qualified buyers are able to compete to name the price they are willing to pay. The property will always sell for fair market value. Buyers appreciate the transparency of auction sales, knowing they will pay only the open market price for a piece of real estate.
Benefits to Buyer
- Smart purchases are made as properties are always purchased at fair market value through competitive bidding.
- The buyer knows the seller is fully prepared, willing, and committed to sell the property for a reasonable price that the market determines.
- In multi-property auctions, buyers are able to bid on multiple real estate opportunities in the same place at the same time.
- The buyer has complete negotiating control in that he or she can drop out of the bidding at any time if the price is too high.
- Auctions reduce the time to purchase and eliminate long negotiation periods
- Purchasing and closing costs are known.
- Buyers know they are competing fairly and on the same terms as all other buyers.
- Buyers receive comprehensive information on a property via a due-diligence package prior to the auction.
- Buyers have the opportunity to thoroughly inspect a property prior to the negotiation of purchase price.
- Buyers can receive favorable financing through advanced financing arrangements.
- Buyers do not have to worry about contingencies.
The Buying Process
The steps to buying real estate at auction:
- Attend one of the scheduled preview dates for the real estate to be auctioned! It is very important to attend one of the scheduled previews to receive all of the necessary information to bid at the auction. If you are absolutely unable to attend one of the pre-scheduled property preview showings, contact a VersaLand representative with sufficient lead time and a private preview can potentially be arranged.
- Request a Property Information Package which contains photos, a deed description, terms of sale, a sample Purchase and Sale Agreement, property tax and assessment information, plat or survey, financial contacts and other informative documents.
- Inspect the property for you are buying property “as is, with no contingencies”. Personal inspection is the buyer’s responsibility and can help you determine value and desirability of property.
- Prequalify for any necessary financing. An auction will require you to execute a non-contingent contract to purchase. Your lender will help you determine your purchase level, increasing your comfort level and allowing you to bid with confidence.
- To familiarize yourself with the auction process before participating as a bidder, you may attend an auction as an observer so you will know what to expect. You may also watch a video of a previously conducted VersaLand real estate auction.
- Come to the auction with a bid strategy. Examine the properties, review the Property Information Package, and know your bid limit.
- Arrive at the auction early enough to register to bid. Any last minute questions may be addressed to the auctioneer prior to the auction beginning. At registration you will receive a bid package containing your bid number and Property Information Package.
- Bid and compete aggressively. You will only be able to buy at your price if you bid your price.
- You are a successful bidder. You will sign a purchase and sale agreement; and pay your non-refundable deposit of 10% of purchase price. Plan and expect to close within 30 days of auction date.