Why Sell Real-Estate with Redding Auction Service, Inc.?
No Buyer’s Premium:
At Redding Auction Service, Inc., we do not charge a buyer’s premium. You may be asking yourself why this will affect you as the “seller” when it is called a “buyer’s” premium, but the affect could not be greater. A buyer’s premium adds a percentage on top of the final selling price of what is being sold. For example, if an auction company has a 10% buyer’s premium and you purchase a property for for $100,000, at settlement, that property will be $110,000. If a persons budget is $100,000, they are going to stop bidding at $90,000 because they know after the premium is added it will be $100,000. When companies have a buyer’s premium, prices are not able to reach their full potential and therefore, you are not getting the greatest return on your investment. At Redding Auction Service, Inc. you maximize 100% of your investment minus our commission rate.
Why Sell Property Through an Auction Versus a Real Estate Agent?
- The property is sold AS-IS, this means that you are not susceptible to any home inspections or a disclosure statement. If the purchaser would like to have any perk tests or home inspections done, they are able to, however it is at their expense and regardless of the outcome, you are not responsible for anything.
- All properties sold are being sold with a reserve. This means that during the auction, you have the final say of whether or not the property gets sold at the price you are being presented with.
- Our fees are less than what a relator charges for the same job.
- Your property will be marketed more than if you listed it with a relator. We not only list every property on the MLS, but it will also be live on our website, AuctionZip.com, EstateSale.com, and GoToAuction.com. It will be marketed in all local paper advertising such as the Lancaster Farmer, the Gettysburg Times, and the Auction Locator. We also utilize social media to reach an even larger audience.
- We provide and handle all personal showings as well as open houses.
- We require a non-refundable deposit the day of the auction and settlement must be completed with 45 days of the auction unless agreed upon by both parties.
- You as the seller will set the terms and conditions of the auction.
- We are a full-service auction facility so we have the ability to sell not only the property but the contents of the home as well if that is needed.
- We get the TRUE market value of your property. Instead of setting and price and potentially shorting yourself, allow us to gather tons of interested parties and see where the bidding ends. By selling via an auction, the potential for your property is limitless.
What Would the Process Look Like?
Step 1 (Consultation):
One of our representatives would come out and meet you at the property you are looking to sell. We would analyze the property, gather any information you can provide us, and answer any questions you may have. If both parties agree to move forward we would do a contract with you to get the process started.
Step 2 (Listing and Pictures):
Once the contract has been signed we would come back out to the property to create a listing which consists of all of the details and assets the property encompasses. Some examples of these details are number of bedrooms, bathrooms, room dimensions, property amenities, and more. We would also take hundreds of photographs of the home and property overall.
Step 3 (Attorney/Terms):
The next step is acquiring an attorney. If you do not have an attorney that you typically use, we can provide recommendations of ones that we use regularly for real-estate auctions. The reason an attorney is needed is to create the terms and conditions of sale which they read prior to the start of the auction, they handle all title searches and deeds, they handle all paperwork the day of the auction, accept the down payment, and they will represent you at settlement. They will be your representative through the entire process and will work with you on what you want the terms and conditions of the sale to be.
Step 4 (Setting the Date):
Once all of the property information has been gathered and an attorney has been acquired, we pick a date for the auction to take place. This will be approved by the attorney as well as you the seller before anything is set in stone. We typically like to have at least 6 weeks to market the property, conduct open houses, and do personal inspections. The more time you have to gain exposure the better.
Step 5 (Marketing):
Once everything is set, our marketing team goes to work. The property will be posted on the MLS, as well as our website, AuctionZip.com, EstateSale.com, and GoToAuction.com. It will be posted on social media and sent out to all of our email lists consisting of thousands of people. It will be advertised in the Lancaster Farmer, the Gettysburg Times, and the Auction Locator. We pay close attention to the area of the property and will seek out specific publications in that specific area. For example, if the property is located in Franklin County we would utilize the Franklin Shopper as a paper option. Flyers are posted on our bulletin boards at both facilities and handed out at all of our auctions. Our goal is to create the greatest amount of exposure for your property.
Step 6 (Open Houses and Personal Inspections):
For each property we sell, we provide at least two open houses for people to come and inspect the property and have any questions answered. We also will meet interested parties at the property by appointment for personal inspections if they are unable to make it to one of the open houses.
Step 7 (The Auction):
The auction method of selling real-estate is much different from other selling methods. On the day of the auction, we would arrive several hours prior to the established start time to answer any last minute questions people may have, as well as any last minute walkthroughs people would like to do. The attorney would also arrive ahead of time for any questions people may have directed towards them. At the designated start time, we would make our opening remarks and then the attorney would read all of the terms and conditions of the sale. Once the attorney has finished we open the floor for any additional last minute questions. Once that has been completed we open up the bidding for the first time. The auctioneer will get the bidding up as high as they can until it stops. Once it stops the auctioneer will take a “recess,” during the recess the auctioneer will meet with you as well as the attorney representing you. At this time you will decide if you are willing to accept the price you are being presented with. If you are NOT willing to accept the bid, the auctioneer will go back out and reopen the bidding, if the price rises we will conduct a second “recess” with the new price. We will conduct as many “recesses” as needed until we reach a price you are willing to accept. If you ARE willing to accept the price you are presented with, the auctioneer will still go back out and reopen the bidding. Often times, the price will still continue to rise. With that said, it could not, so you have to be comfortable with the price you were presented with during the recess. Once the property is sold, the attorney will accept the non-refundable deposit as well as handle paperwork that both parties will sign.
Step 8 (Settlement):
You, your attorney, and the purchaser will set the timeline for settlement. We advertise and ensure that the terms say settlement must take place within 45 days unless agreed upon by both parties. We also specify that if the buyer would not make it to settlement, they forfeit the large deposit that was put down and the seller keeps it. Often times, settlement will take place at your attorneys office, but it can take place anywhere as long as it is agreed upon.
What is Your Selling Fee?
We handle our rates on a situational bases and the appraised value of the property. Please call our office at 717-334-6941 to schedule a consultation and we can quote a fee at that time. With that said, our rates are percentages lower than what a relator would charge you. If the property does not sell we do charge a minimal no sale fee and you would be responsible for any advertising costs incurred. You would be aware of the budget we set for advertising when the contract is signed. We are confident in our ability to get to the price you are comfortable with and we have multiple conversations about this throughout the process. Do not let the property not selling deter you from this method, we would not move forward if we did not feel like you were seeking a realistic price for the property.