Steps to Selling at Auction
The benefits of selling by auction are many. Of course, converting property, possessions or inventory to cash is one of the major ones. But, people don't want to sell unless they get fair market value and that's where the auction comes in. An auction outperforms any other marketing method for whatever people have to sell. The competition created among the buyers stimulates prices and establishes current market value. And finally, the auction method is flexible. The customer decides when to sell and what to sell. Anything in real or personal property can be sold. Well-trained auctioneers use established and successful procedures to ensure maximum benefits from an auction.
Step 1: Seller & Auctioneer Meeting
First, the auctioneer meets with the potential seller to see what is to be auctioned and understands the seller's expectations. The auctioneer's services and the seller's desires are discussed. This process includes determining what type of auction will be used.
Step 2: Auctioneer Submit Proposal to Seller
The auctioneer will then present a proposal which details the auction date, location, time of auction, cost of advertising, sales commission and other matters. When the terms of the proposal are agreed upon, a contract is initiated.
Step 3: Title & Legal Verifications
At this point, different steps are taken for different types of auctions. Today, with more and more strict regulations, many background checks take place to assure that the auction will conform with the Uniform Commercial Code, any city, county or parish and state license requirements, to verify title to the property, and to notify creditors of the auction.
Step 4: Advertising Campaign
Next, an advertising campaign is prepared to help assure good attendance. A comprehensive marketing campaign locates the right buyer and is individually tailored. A blend of targeted advertising, publicity, telemarketing, direct solicitation, on-site property & directional signage, web exposure and direct mail marketing are all considered in strategizing the appropriate marketing campaign for your property. Also included in the promotion is the analysis of Crye-Leike's proprietary database of prospects and investors, utilized to find the right buyer. A well-planned advertising program is essential to the success of the auction.
Step 5: Site Preparation
According to the sellers' wishes, auctioneers may take the responsibility of preparing the merchandise before the auction. Much cleaning, grouping, organizing and often repairing and painting take place so that the property will be more marketable on auction day.
Step 6: The Auction
Preplanning ensures that the auction area conveys a "sales-friendly" atmosphere. Crye-Leike auctioneers complete due diligence information to facilitate buyer evaluation of properties. After the auction, the high bidder deposits earnest money and signs the pre-approved real estate sales contract. Nothing is left to chance.
Step 7: Post-Auction Follow Up
The closing of the sale usually takes two to four weeks after the actual auction. Experienced contract processing, follow up and follow through after the bidder becomes a buyer, guarantees a successful, timely sale.