About Real Estate Auctions
Brzostek's Real Estate Auction Company, Inc. conducts auctions of residential, commercial, income, farm, land and waterfront properties. We used the unreserved method of marketing to sell real estate on the day that owners want it sold!
Our professional staff is without equal in the professional sale of real estate via auction.
The Auction Method of Marketing Your Real Estate:
We invite you to learn more about the benefits and procedures of selling real estate by auction. If this page doesn't answer all of your questions, or if you would like to be placed on our auction mailing list or are interested in having an auction, please contact us today!
Current Problems Facing Owners Of Residential Real Estate:
- Properties that have been on the market for longer than several months give an appearance of being "shop worn,"" with little motivation to arouse prospective purchasers.
- Carrying costs associated with real estate typically run 20% to 35% of the property's market value per year to carry if they are vacant.
- Security problems, absentee ownership and the resulting liability are a financial drain.
- On-going property management responsibilities including insurance, taxes, mortgages, and utilities continue to accrue on a daily basis.
For the last couple of years, some property is depreciating instead of appreciating in value in New York State. In addition to all of the carrying costs associated with the property, owners face the situation where the property may be depreciating in value. Holding the property can only cost owners additional carrying cost expense, as well as receiving a lower price if, and when, the property is finally sold.
How The Auction Method Of Marketing Eliminates Problems For Sellers:
Instead of carrying a piece of property for six months to a year or longer, an auction can effectively be scheduled within 30 days of approval of an auction listing agreement.
The auction method of marketing accelerates the selling process for their property, forcing purchasers to deal with a deadline by establishing a specific date, time and place for the auction sale. This creates a sense of urgency and forces interested parties and possible buyers to finalize arrangements for attending open houses and/or private showings, pre-arranging for financing commitments, consultation between spouses and/or business partners, legal representation, etc. in advance so as to be fully prepared to make their highest and best bid on the day of the auction. This bid is then placed in the form of a non-contingent purchase offer with a 20% non-refundable deposit paid by the buyer and held in Brzostek's escrow account until closing.
Additionally, Brzostek's, not you, pays a co-brokering commission to other real estate companies and their prospects and offers an open invitation to attend the open house viewings and auctions. Therefore, not only is Brzostek's working to sell your property, but all the Realtors in the area are involved with their prospective buyers as well.
The Unreserved Auction:
The Unreserved Auction method of marketing exposes the property to the greatest number of buyers in the shortest period of time. The property sells to the highest bidder, regardless of the final bid. While the unreserved auction is obviously the riskiest, it also attracts the most buyers and often generates a higher than expected selling price.
Specifics Regarding The Unreserved Auction Method Of Marketing
To ensure aggressive bidding and to maximize results of the auction, Brzostek's brokers, auctioneers and agents emphasize educating bidders on unique features and desirable characteristics of the property. A high confidence level by the bidders is commensurate with spirited bidding and successful real estate auctions.
The auction is open to all interested parties, and is widely advertised so as to avoid any criticism or lack of information, opportunity or cooperation by any third party to be able to buy any asset.
- In an unreserved auction, the auctioneer will accept the highest bid, regardless of the amount. The seller has the right to accept or reject that bid.
- In an absolute auction, the property MUST sell. The seller may not bid on the property to buy it back.
- The Seller, in advance, establishes a minimum (reserve) bid, which may or may not be known to the bidders.
- Non-Contingent Purchase Contract:
- A contract for the purchase and sale of the real property that contains no contingencies (i.e.: financing, radon testing, etc.).
- Buyers Premium:
- A buyer's premium is a commission, usually a percentage, which is added to the last bid and is paid by the buyer.
- Specifics of Marketing Your Property:
Total Marketing Budget is agreed upon by Brzostek's and the Seller. (Any amount spent above the agreed amount will be the total responsibility of Brzostek's Real Estate Auction Co., Inc.)
- Brzostek's has an in-house mailing list of over 85,000 people, and distributes flyers to buyers across the State and the nation.
- Single page flyers are mailed to numerous Real Estate Companies.
- Brzostek's co-brokes with Realtors & Real Estate Agents.
- An extensive advertising schedule will be prepared specifically for your property to include local, regional and national newspaper advertising.
- Signs en-route to the property and in front of the property.
- Interior, Exterior and Aerial Photographs (when needed).
- Two Open houses to be conducted by well-trained representatives (vacant land can be viewed at buyer's own convenience).
- Telephone inquiries are answered promptly.
- Bid packages are prepared and distributed which include a copy of the deed, survey, flyer and a sample purchase offer.
- Planning and organizational staff to prepare for the auction.
- Personnel to conduct the auction.
- Chairs, public address system, still and/or motion video presentations of the real estate; tents, heat, lighting, refreshments & portable restrooms when contents are involved.
- Customized Radio Transmittals for your property.
- Brzostek's Web Site attracts 100,000+ hits per month.
All Marketing and Advertising expenses will be documented and submitted to the seller upon final settlement of the auction.