Seller Frequently Asked Questions


If I sell at auction, aren’t I giving it away

    Many people believe an auction means getting a bargain. Auctioneers understand this perception and use it to attract interested buyers, helping create a competitive marketplace. While auctions can provide excellent buying opportunities, they are also used to sell valuable and unique properties where pricing may be difficult to determine.

    Through an auction, the seller controls the time and terms of the sale while creating a competitive bidding environment. In many real estate transactions, multiple buyers compete by submitting offers above the listing price. An auction simply provides a transparent process where buyers compete openly, allowing the seller to evaluate the highest bid under the established terms.

Why would I sell my home at auction

    Maybe you shouldn't. If you are satisfied with your current home and are only considering selling if you receive a certain price, a traditional real estate listing may be the better option.

    However, if you are motivated to sell and are ready, willing, and able to accept the highest bid for your property, an auction may be an effective solution. The goal of a well-executed auction is to provide the highest possible sale price in the shortest practical timeframe. Auctions may also be beneficial for estate properties or vacant properties where a defined sales timeline is important.

What are the advantages of selling real estate at auction

    When you sell real estate at auction, you establish the terms of the sale. Benefits may include:
    • A defined marketing timeline, typically 4 to 6 weeks before the auction.
    • A scheduled closing, generally within 30 to 45 days after the auction.
    • Reduced carrying costs through a faster sales process.
    • Properties are generally sold "as-is, where-is," helping reduce negotiations after inspections.
    • Auction contracts generally do not include financing contingencies.
    • Competitive bidding allows you to evaluate the market's response before deciding whether to accept the highest bid.

What if I have more than one property

    The auction process can accommodate multiple properties within a single marketing timeline. When properties are related, buyers may have opportunities to bid on individual parcels or combinations of parcels.

What advantages does an auction have

    The primary advantage is control. Sellers establish the timeline and terms of the sale while using an aggressive marketing campaign to generate buyer interest and competitive bidding.

How will my property be marketed

    Auction marketing may include print advertising, targeted direct mail, email marketing, property signage, and online property listings.

Can I get a good price at auction

    Whether a property is sold through an auction or a traditional listing, buyers ultimately determine what they are willing to pay. In either case, the seller has the right to accept or reject an offer. The decision to use an auction should be based on your overall selling goals rather than price alone.

Do I have any protection from what I feel may be too low of a price

    Properties may be offered with reserve or without reserve. For properties sold with reserve, the seller retains the right to accept or reject the highest bid.

How often do properties sell for less than appraised value

    Appraisals are estimates based on comparable sales and market conditions. Actual selling prices may be above or below an appraised value in both auction and traditional real estate transactions.

How often do properties sell for less than appraised value?

Appraisals are estimates based on comparable sales and market conditions. Actual selling prices may be above or below an appraised value in both auction and traditional real estate transactions.

When is an auction NOT recommended?

An auction may not be the best choice if you are content to remain in your home unless a specific price is achieved. Because auction marketing typically requires an upfront investment, a traditional listing may be more appropriate in that situation.

Buyers Recommendations

  • View the Property
  • Request a Property Information Package
  • Complete Your Due Diligence
  • Arrange Financing
  • Speak with the Auction Company
  • Understand the Seller
  • Register to Bid
  • Review Deposit Requirements
  • Develop a Bidding Plan
  • Bid Assistants
  • After the Auction

 

Real Estate - Auction vs. Listing

Choosing between an auction and a traditional listing depends on your goals, timeline, and the type of property you are selling. The information below explains situations where each approach may be appropriate.

Why would an executor choose to auction a home, rather than just listing it

Often in an estate situation we are asked the question, “why would an executor choose to auction a home, rather than just listing it” 

The answer is both complicated and yet very simple.  In an estate situation, often executors live a distance away from the assets and property that need to be dealt with and / or there are multiple executors and heirs with differing goals and expectations.  Often executors are very busy and emotionally attached to the assets and real estate that requires marketing and sale.

A traditional real estate company is not equipped to deal with all of the assets bundled in an estate, only the single most valuable asset; the real estate.  Any real estate agent working with any company can sell your biggest most valuable asset, but leave you stranded with all of the other overwhelming issues you have to deal with inside an estate. 

At LWBC’s, because we have dealt with such a high volume of estate customers, we have grown to intimately understand the needs of our estate customers, and the need and demand for a one stop estate settlement solution.  Often our firm is hired to settle an estate because we are one company, offering a complete estate settlement solution.

Often assets will include valuable art, antiques, jewelry, collections, cars, boats, machinery, tools and general household items. We offer a complete turnkey Estate Settlement Solution, including property management of the residence, garbage removal and property clean up, clean the inside of the home and “stage it” ready for showing and then sell the home and contents utilizing a marketing system based on the strengths of the firm through a time defined sale by competitive bid.  

We also list estate properties, but often estate homes are vacant and unattended and the family requires an expeditious sale in a known time frame, only offered by the auction method.  PLUS, we liquidate the contents in the same time frame.  A turn key solution to meet all your needs in a time frame set by you.

Once our “total services” contract is signed, the timeline to completion is typically 30 to 60 days.  This process includes not only the firm sale of the home, but all of the services listed above and many other services also offered to our estate customers.  Some estate customers choose all of our services and others choose less.  But at the end of the day, we’re not just a real estate company to our estate customers, we are a partner they can depend upon to assist them to make the best decisions with the entire estate AND we’ll maximize the value of the largest single asset in the estate, the real estate.  We can either conduct a time defined sale of the property (auction), and/or list it on the regular Realtor MLS system.

Call today if you think we can help you, or someone you know.  The other core market we serve is seniors downsizing.  Seniors, and families of seniors, downsizing from a home to an apartment or care facility often face many of the same challenges as Executors.

 

An Opportunity for Realtors!

Don't lose expired listings without exploring another option. The auction method may provide an alternative for motivated sellers, unique properties, estate properties, and listings that have proven difficult to sell through traditional marketing.

A certain percentage of your listings could be best sold at auction (e.g., the extraordinary, the unusual, the overbuilt). Due to their unique nature, you often lose the listing before you get it sold. At auction with LWBC, there is a 90% chance of getting it sold in 30 days!

Offer an alternate solution to anxious Sellers and Executors. Use us as a tool to obtain substantial price reductions. We will help you turn seemingly unsalable properties into strong listings.

We are not asking you to endorse the Auction Method of Marketing real estate, we are asking you acknowledge that it is an alternative to the traditional methods of real estate marketing that could be suitable to some of your current and future real estate clients.
Offering the Auction Method of Marketing real estate to consumers in general will bring the most serious Buyers and Sellers to your company and provide you with a steady supply of serious and qualified Buyers and Sellers.

Our message to fellow Realtors is simple: (1) Do not let expired listings/commissions walk out the door AND (2) Let us help you turn tough properties into quick and easy commissions. Our niche company provides proven alternative solutions to selling overpriced, tough, complicated, unique, extraordinary and estate properties. We regularly sell and assist to sell residential and commercial properties in Georgia. Our Selling customers include our real estate partners, many private individuals, financial institutions, large and small corporations and all levels of government.

If you have a tough to sell property listed with a motivated Seller, or a good listing about to expire, call us and we may be able to help turn that lost listing into a commission, or a very substantial price reduction. Further, they are closed and commissions are paid in 30 days or less.

The benefits of an Auction Partnership with LWBC are measurable:

  1. You do not lose the listing/commission and you help solve a problem for your Vendor.
  2. Once the auction listing is signed, you have a great chance to earn a 3% listing commission paid to you at closing, normally within 75 days or less of signing the contract.  Typically, if you register the high bidder for the auction, you’ll earn a further 2 - 2.5% commission, in addition to the 3% listing commission.
  3. You will assist with and be promoted throughout the open house and auction process. 
  4. Immediately following the auction, LWBC will provide you with a detailed list of all registered bidders for the auctioned property. You will have already been exposed to these prospects at least once and possibly two or even three times through open houses, telephone conversations and on auction day. This list of prospects is significant and its’ yours to keep! All of those people who registered to bid have told you that they would like to, or are willing to, purchase a property in your market area. Further, many potential bidders are excluded from the unconditional cash only bidding process because they have another property to sell that is not yet listed for sale.  

In summary, an Auction Partnership with LWBC means that you will lose less listings, you can potentially earn a substantial commission quickly, you will generate new qualified buyers and listing leads giving you the ability to earn after the sale commissions, you will gain thousands of dollars in free advertising, you will be able to add Auction Marketing experience to your listing services portfolio and you will have solved your Seller’s problem!

We happily pay commissions to our real estate auction partners.

We have developed and utilize multiple accelerated marketing strategies and techniques including Live Bid, Sealed Bid, Alternative Sealed Bid, Multi Par and On Line auction strategies. Each is based upon similar principals, however could produce different results, based on the property and the broadness or narrowness of the market for the property(s).

To arrange a personal meeting in your office, or to learn more about the details of our Auction Marketing Programs, please call LWBC.  We’d be delighted to speak with you or meet with you and/or any of your Sellers.  We would also be available to speak with you and your entire office in seminar format at any time!

Our Auction Marketing Programs are exciting and they work! Lets work together. You’ll be happy you did, and most importantly, so will your Seller.

 

Co-operating Agent Information

  • Buyer Referrals – Pre-register your buyer with our office. Qualified cooperating brokers may receive a commission if their client purchases and closes on a qualifying property.
  • Personal Property Referrals – If your client needs assistance selling furniture, antiques, collectibles, or estate contents after a move or downsizing, referrals may qualify for a referral fee.