The world’s finest art, classic cars, yachts, and memorabilia are sold at auction. The stock market is an auction that controls the value of stocks, livestock auctions have an impact on the cost of food products and energy prices are determined at the Chicago Mercantile, just another auction platform. In addition, the interest rate on money is even controlled by auctions. Over the past 20 years, eBay has sold billions of items by the auction method.
Real Estate auctions are no longer just for distressed properties and Real Estate auctions have become mainstream with the popularity growing by leaps and bounds! So why not auction your property? It is the fastest and best way to sell your property!
Love Auctions No Risk Sales Approach
Absolutely No Risk
Before the auction, the Seller will determine a “Reserve Price” (the lowest price the Seller is willing to accept for the property). Therefore, if the highest offer doesn’t reach this price point, the Seller is not obligated to sell the property.
Before a Seller determines the reserve price, we review the market comps and recent sales in the area where the property is located and work together with you to determine a satisfactory auction sales price. We then set an auction date to take place in the following 30+/- days. At the same time, we advertise and market the property to potential buyers and to Broker/Agents through various marketing methods, including placing the property on MLS and numerous other online real estate sales platforms.
Our advertising and marketing efforts are designed to stimulate interest in the property and to encourage purchase offers prior to the auction. It is not unusual for properties are sold prior to the auction.
Auctions Net More Money For Sellers
Fewer Seller sales cost means bigger net proceeds at closing! Love Auctions Seller fees are less than the traditional sales commissions and the Love Auction process is fast, usually, 60+/- days form from listing to closing, which saves a Seller huge carrying cost. Properties are sold in “as is ” condition without contingencies saving a Seller time and money.
Click on our Love Auction Calculator page and input the desired sale price for a property you are thinking about selling along with the mortgage payoff and monthly property expenses. We will provide 5 different sale price scenarios. See the difference in net proceeds between a Love Auction and a traditional sale.
We provide all of the necessary information to Buyer’s ahead of time so that they can make an offer on the Sellers property without any conditions. In addition to the customary marketing material, Love Auctions will provide a home inspection report, title report, and property survey. All of the reports are prepared by a professional and independent third-party company prior to listing your property and provided to each and every Buyer who shows interest in making an offer. For condominiums, the status certificate is ordered ahead of time and ready for review.
We complete the entire offer documentation ahead of time where the Seller determines the ideal closing date, the items included in the sale along with any exclusions. Each and every Buyer has access to this information that is posted on our website ahead of the auction date so they are aware of the details. Once the auction is concluded and, the only part of the agreement that needs to be completed after the auction has completed is the Buyer’s name and purchase price amount.
When we list your property to be auctioned, we keep the process on a tight schedule. When our Love Auction sign goes up, it tells Buyers how the Seller has chosen to sell the property and the date it will sell. An auction date is a deadline that Buyers take seriously. As potential Buyers register for the upcoming auction, we continue to encourage purchase offers prior to the auction. Should the auction proceed and the property is not sold, the auction listing automatically converts to a traditional listing and marketing efforts continue until the property is sold. The Love Auction sales approach offers Sellers a unique sales approach that provides the best of both sales platforms. The Seller is not limited to any one sales approach.
No Cash & Property Needs Work In Order To Maximize The Value…NO PROBLEM!
Love Auctions has established relationships with local companies that will make all the repairs necessary to maximize the sale price of the property and delay payment until your property is sold. If you need pre-sale home improvement services anywhere in DC Metro Market, Love Auctions has the solution. Love Auctions can arrange 100% financing with no cash, credit, or income requirement, and no finance charges or hidden fees. We can get your property refurbish and payment is made from the sale proceeds of the home. Regardless of how long it takes to sell your home, you won’t pay for our home repair services until you sell and close, and there won’t be any finance charges. Services provided include; painting, roofing, flooring, appliances, HVAC, handyman repairs, landscaping, staging, and so much more. Free estimate right up front so you’ll know what it’s going to cost to get your home looking it’s best and ready to sell for its maximum potential price. All work is guaranteed.
Qualified & Motivated Buyers
When a Buyer registers to participate in the real estate auction, they need to be verified and provide an auction registration deposit. This ensures that each and every Buyer is taking the process very seriously. In addition, the Buyer who becomes the winner of the auction is required to provide an addition purchase deposit.
A Buyer will feel more comfortable increasing their bid amount if they know that other potential Buyers are actually bidding on the property but most importantly, if they know the prices these competing Buyers are offering. Competitive bidding drives the sale price up and ensures the Seller of realizing the best price possible for the property.
Live Auctions & Online Bidding
Love Auctions are live events with a professionally licensed auctioneer typically held at the property location and simulcasted on our online bidding platform to ensure that every potential buyer can participate in the auction without having to physically attend the live auction. More Buyers bidding at an auction will always result in a higher sale price.
If The Property Doesn’t Sell At Auction, It Is Converted Into A Traditional Listing
If the highest auction offer doesn’t reach your predetermined minimum sale price (the Reserve Price), we automatically roll the listing into a traditional listing with our professional sales team and the marketing the property continues until it is sold. Keep in mind, Buyers will often make offers before the auction and even after the auction closes when the Reserve Price is not reached. It is not unusual to see deals being made after the close of an auction where the Reserve Price was not reached.
Research has proven that the best opportunity to sell a property is with the first 60 days of when a property is placed on the market. The highest rate of interest from prospective Buyers is during this window of time. We are not simply Auctioneers, we are real estate professionals that specialize in the sale of residential and commercial real estate with decades of real estate sales background and fully understand the market and the sales process. That is why Love Auctions can provide a Seller a combination sales platform to ensure Sellers the property will be sold either by auction, by the traditional sales method and/or a combination of both methods. The Love Auction sales strategy provides a Seller with the best opportunity to quickly sell a property in “as is ” condition, with no contingencies at the highest price
Advantages Of The NO RISK Love Auction Platform
- No Risk to you if the auction bidding does not meet or exceed your predetermined minimum sale price (the reserve price):
- You decide the sale date and closing date;
- The Seller knows exactly when the property will sell;
- Creates competition among Buyers;
- Auction price often exceeds the price of a negotiated sale;
- Requires potential Buyers to pre-qualify for financing;
- Eliminates numerous and unscheduled showings;
- Takes the Seller out of the negotiation process.
- You will be provided with the opening bid range, offer line up and exposure metrics so you know before what to expect before your chosen sale date;
- Buyers come prepared to buy the property on the date you set;
- Assurance that property will be sold at true market value.
- The sale of your property will be followed by a contingency-free closing typically within 30 days from the auction date;
- A quick sale reduces long-term carrying costs, including taxes & maintenance.
- Love Auctions are backed by game-changing technologies, we have pioneered a new way to sell properties just like yours;
- Exposes the property to many pre-qualified prospects;
- Ensures an aggressive marketing program that increases interest and visibility.
- How many eyes need to be reached to generate sufficient momentum;
- How many feet need to come through the doors at showing and open houses;
- How many registered bidders will result in a successful auction.
What Happens When You Call Love Auctions?
Prior to engaging us, we will spend time reviewing your market, available inventory and recent sales to determine an expected opening bid range for your property. Once we have agreed to a course of action, our Love auction team goes to work.
- We create an information package for your property, complete with professional photographs, floor plans, tax records, utility information an inspection report, termite inspection report, radon test report, a plat map, title and lien search. All the information, reports and services are provided by reparable third-party professionals at no cost to you. Once the marketing and advertising your property begins, we keep you informed every step of the way, though updates can constant communication.
- The more information we can provide a Buyer the better! We firmly believe in total transparency and provide potential Buyers with an abundance of information about the property to eliminate any hesitation by Buyers to participate in the auction. Transparency will bring more Buyers to the auction which will ultimately result in selling your property for the highest price possible. We leave “no stone unturned” and remove all the “unknowns” from of the auction process.
- The auction is posted on our highly promoted Love Auction website, and Broker/Agents and potential Buyers are notified by email of the auction announcement. To establish the highest possible starting bids, we encourage Buyers to submit an opening bid in advance of the auction by opening the bidding process through our online bidding platform. As a general guideline, the average opening bid is typically 40-60% of the final sales price.
- The property is also listed on MLS and in all the high traffic internet real estate websites.
- Promotional materials are created and distributed to local, regional and international broker/agents and directly to protentional Buyers. Depending on the property, direct mail may be utilized.
- Signs are ordered and posted on the property.
- Property inspection dates are set in advance in advance around your schedule to eliminate unannounced and inconvenient showing times.
- Love Auctions will take control of the entire management of your auction from the day the Auction listing is booked until the closing. In short, you can rely on our experience and innovation to ensure you get the maximum price for your property.
Best Time To Auction
Auctioning a property when it first comes on the market has tremendous advantages over the traditional sales method. Statistical data clearly indicates that the highest amount of interest in a newly listed property is in first 30 days of when a property is first placed on the market.
An auction of a property in first 30 will often deliver better results for a Seller over the traditional sales method. Auctions do not cap or limit the sale price that the traditional sales method does. The excitement that comes with an auction delivers completive bidding that will drive up the price often beyond the traditional “fixed” asking price determined with the traditional sales method. In addition, auctioned properties are sold in “as is” condition with no contingencies and close in 30+/- days from the auction date. Auctions eliminate the Sellers carrying cost and the entire auction process takes 60 days+/- from the listing date to the closing.
Real Estate Investors, Builders, and Home Flippers fully understand the urgency to sell an investment property quickly. The best way to sell an investment type property is by auction. An auction is fast; 30 days or less from the listing date to the auction sale date.
Properties are sold in “As Is” condition and there are no contingencies. In addition, the Buyer pays most, if not all of the recordation and transfer taxes along with interest on the sale price from the auction date until the closing date, usually a 30-day period.
Every single day that goes by without a sale and a quick closing decreases the profit an investor type property can earn due to the cost to carry the property. Loan fees, real estate taxes, utilities, etc, all add up fast and a property sitting on the market for a long time will turn a profitable deal into a loser for the Investor. Simply stated, the longer an investment property goes unsold, the less profit the investor will earn, if any profit at all!
An Investor, Builders and Home Flippers, can’t afford to wait the lengthy time the traditional sales method takes which allows a Buyer to be in control and to utilize time as a tool to negotiate the sale price down. An auction puts the Seller in control of the sale date, sale price, and the sale terms. An auction offers competitive bidding with no limit to the sale price. An auction puts the Seller in the position to watch the sale price go up, not down and often exceeds “asking price” found in the traditional sales method.
If a property is vacant, Sellers must recognize that the property can and will deteriorate very quickly and drive any potential sale price down. Vacant properties are also prone to break-ins and vandalism. In addition, a small problem such as a leaky toilet in an occupied property can turn into a flood in a vacant property resulting in major damage and cost to repair.
The cost to carry a vacant property while it is deteriorating will drive the potential net proceeds from a sale down 20% or more annually. Vacant properties should be sold quickly to preserve the value.
A Seller cannot ignore the negative effect that time has on the value of money along with the cost of lost opportunity. A great example can be best compared to a stock in a company sold on The New York Stock Exchange. There were people who owned stock in America Online (AOL) and when the stock crashed years ago, it lost 80% of its value. Some people held it thinking it would rebound, it never did.
Other people sold the AOL stock and invested in a little-known company called Apple and not only made back the money lost on AOL, they realized huge returns with the Apple stock. Real Estate and stocks are both investments and must be looked at in a similar fashion. Often, it is better to sell a property that is not maintaining or increasing its value and reinvest the proceeds into another property that will produce better results. Holding out and waiting for the market to change or waiting for a better price is more often than not the wrong answer!
Types of Auctions
Selling Without A Reserve
Selling without a reserve is also referred to as an “Absolute Auction”. This means that the Seller has agreed to have the value of the property determined by the “market” through competitive bidding on auction day. The Seller will accept the high bid regardless of the amount. The benefit of this strategy is the confidence it instills among Buyers as they know the property will be sold to the highest bidder regardless of the price on auction day. Buyers come prepared to make their highest and best bid. Auctions without a reserve typically will produce a much better Buyer turn out than an auction with a reserve. In addition, research shows that auctions without a reserve typically will bring a higher sale price for the property than auctions with a reserve.
Selling With A Reserve
Selling with a Reserve means that the Seller is placing a minimum sale price for the property the Seller is willing to accept. Should the highest bid at the auction fall short of the Reserve price, the property will not be sold. The negative with this strategy is that potential Buyers do not know what the Reserve price is set at and/or if the property will even be sold on auction day. Some potential Buyers will not attend this type of auction. An option to maintain Buyer interest would be to have an “Opening or Starting Bid”, which is essentially a reserve auction with the reserve being disclosed upfront. The Opening or Starting Bid lets potential Buyers know that the property will be sold, so long as the winning bid surpasses the Opening or Starting Bid.
Residential – Love Auctions brings more than 30 years of real estate sales to you. Through our extensive marketing program, your property will be sold for the highest price in the shortest amount of time. An auction makes it possible to reach local, regional and international Buyers through the Love Auction Marketing Program.
Commercial, Investment Property & Government – A Love Auction is ideal for selling commercial, investment and government-owned properties. We will properly evaluate your property and develop a marketing plan that will meet your goals and maximize the sales price.
Land and Farms – Multi-parcel auctions are effective for increasing Buyer interest and competition. By dividing the property into parcels this enables more people the opportunity to purchase the land.