Brokers & Realtors

Benefits of Auctions for Realtors

- Earn full listing side commission

- Qualified Buyers (No Financial Contingency)

- No Appraisal Contingency

- No Inspection Contingency

- Sold As-Is, Where-Is (No Repairs Required)

- Sellers get maximum exposure for their properties.

- The marketing strategy differs from conventional advertising. It is more concentrated, therefore more intense and visible.

- High carrying costs are avoided.

- Through auctions, the seller is in control and knows that if properly priced, his property will sell on a certain date which is usually within 45-60 days from the auction listing.

- Creates competition among buyers -- auction price can exceed the price of a negotiated sale.

- A seller knows exactly when the property will sell.

- A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction.

- Auction eliminates numerous and unscheduled showings. 

Auction Benefits for Brokers and Realtors

Why should realtors and brokers work with an auction company? Let’s consider some of the many benefits of showing your listings at auction:

  • Broader market – Auction companies are skilled at marketing properties to potential buyers, ensuring a property stands out in the marketplace. Direct sales efforts help find qualified buyers at auctions, increasing the likelihood of a profitable sale. You can also include a number of properties in a single auction through combination bidding, minimizing the marketing expenses needed for separate auctions while further increasing your network of potential buyers. The increased visibility of the auction process can even attract interest in any of your non-auction properties.

  • Commissions – There are opportunities to earn profits by 1) referring a broker or agent to an auction company, 2) registering a buyer who purchases property at an auction or 3) listing the property that sells at an auction.

  • Eliminate uncertainty – An auction can eliminate pricing uncertainty by assuring the property will be sold at its fair market value.

  • Increased revenue and market share – Developing a niche market with successful auctions will help generate referrals and return business. This, of course, translates to increased revenue.

  • Reduced carrying costs – A longer sales process can involve considerable carrying costs, such as taxes and maintenance. By reducing the time frame of the process, your client can reduce the carrying costs of property maintenance and keep costs from chipping away at equity.

  • Reduced timeframe – Real estate auctions can significantly reduce the timeframe for the sale process. Once the client sets the date for the auction and terms for closing, the process becomes much faster. This can be extremely helpful if your client has been struggling to sell the property for a while or if a quick sale is needed. In short, the seller determines the timetable so their home can sell more quickly at auction.

  • Simplified negotiations – Because auctions set the terms and conditions of sale beforehand, there’s no longer a need for negotiation. With an auction, you can set the time and date of the sale, the timeframe for closing and the amount of earnest money deposits. Since buyers review the terms of the sale and come prepared to buy on those terms, there’s no seemingly endless back and forth.

  • No Contingencies  – Auction sales are not subject to financing, home inspections, surveys, radon testing, variances, etc.

  • True market value – An auction will make it easier to sell your property at the true market value.

  • Urgency – The format of an auction — fixed date and competitive bidding — fosters a sense of urgency for buyers, forcing them to complete due diligence and line up finances by a particular deadline. If buyers don’t want to miss out on an opportunity, they will make an effort to prepare. The alternative is a traditional process that can take months for everyone to firm up a mutual commitment.

  • Global Market Platform – An online auction method allows you to accept bids from anyone on the floor while simultaneously accepting bids from anyone anywhere in the world.

Additional benefits include the following:

  • Ability to sell property as is, without contingencies

  • Creating a list of ready, qualified buyers for sellers

  • Developing expertise to distinguish your services from the competition

  • Enhancing your image as a full-service professional

  • Offering current and prospective clients new selling and buying options

  • Possibility of forcing a sale prior to auction

An auction simplifies what could be a tough sell, eliminating the likelihood that a property will remain unsold for a lengthy amount of time. If you think added visibility, coupled with a speedy process, might benefit your listings and give you an edge over the competition, then you should give real estate auctions serious consideration.

  • Generates a list of ready, qualified buyers

  • Offers clients and customers new selling and purchasing options

  • Increases revenue and market share

  • Develops your own market niche

  • Assurance that property will be sold at true market value

  • Property is sold within a relatively short period of time

  • Exposes the property to many potential purchasers

  • Auctions bring people in to look at all your listings, not just the auction listing

  • Successful auctions result in referrals and return business

  • Agents can earn commissions as referring ag

We are realtors and believe our job is to advise people on the best way to market their property. We are not in competition with you for your customers, we are here to assist you much like a mortgage lender, appraiser and a closing company. We know it takes a high level of trust on your part to make any recommendations to your client. We are here to earn your trust and are glad to answer any questions you might have.