For as long as any of us can remember, auction firms and real estate auctions have been popular for centuries. The all too familiar image of individuals gathering and raising their cards in response to the bids being called out is not something that can easily be misinterpreted. The reason for such popularity lies in the fact that real estate auctions offer an excellent avenue for buyers to purchase foreclosed or distressed properties through the foreclosure process, typically for discounted prices. However, in order to successfully sell a foreclosed property at a real estate auction, you need to find and work, with the right auction firm. Finding the right auction firm can be a bit tricky, so, in an effort to simplify this search, let’s get our paddles ready to auction off some of the key elements that a good auction firm should possess.
When it comes to auction firms, one size does not fit all. Not every auction company is the right fit for its clients which can result in unneeded frustration. That is exactly why you must analyze your potential auction firm and evaluate if they are prepared and up for the task.
This is essential to the success and performance of the auction. An auction firm should have a positive image and impeccable reputation within the industry. The auction company should have an industry network, be knowledgeable and considered an expert in the auction industry. The auction firm should take the time to understand the goals of the client and provide a tailored approach based on the individual needs of the client.
An auction firm should have a solid history of conducting foreclosures or municipal auctions and must be established in the industry. Successful auctioneers are well connected with property investors, mortgage institutes, lending banks, realtors, and brokers in their target area. They are masters of building interest and promoting upcoming auctions with the public. That being said, their experience should be top-notch and should inspire confidence giving you no reason to worry.
- Marketing Strategy
Marketing and networking are of the utmost importance in the auction industry. Creating the proper buzz, excitement, and interest in an auction is essential to its success. After all, if no one attends the auction, no bids can be made and the property will not be sold. Newspaper advertising, social media and other media sources are all great ways to expose the property to the greatest pool of buyers possible. These tools and sources are also essential in the marketing process of the auction industry. A well-seasoned auction firm understands that greater exposure will attract all forms of bidders to their auction. The more qualified bidders that participate at an auction, the greater the chance of selling the foreclosed property to a third party. More buyers are also likely to compete for properties and push the prices higher, allowing lenders to sell the property for a number over what the bank is looking for. In a nutshell, an auction firm should be well-informed and able to spread the word about an auction to increase buyer turnout.
Understanding the Auction Process
Auction processes differ from state to state so it is important to stay up to date on any and all information pertaining to the auction process. In MA, NH and RI, real estate auctions are conducted at the property that is being auctioned. At the property, the auctioneer will register all qualified bidders on-site and begin the auction process. At the start, the auctioneer will read all the necessary paperwork associated with the auction and start the bidding at the bank’s bid. The auctioneer will continue to fetch higher bids until the bidding has stopped. Once the property is declared sold and the bank is satisfied, the auctioneer will yell the all too familiar word “SOLD,” to let all bidders know that this particular auction has ended. Auctions can result in one of two scenarios:
- The property could be sold to a third party
- Or the property can be sold back to its lender
Do Your Homework and Plan for the Auction
Just as anything in life, you should always be prepared when heading to a real estate auction. It is beneficial for bidders to research the property and perform their own due diligence. As a bidder, you must remember that your money will be used to purchase these properties, so that should be incentive enough to research. The auction firm should not be your only source of information about the property. Buyers should also understand that they are buying the property “As is.” They must realize the bank or the auctioneer makes no representations or warranties about the property being auctioned. Bidders should investigate the property by driving by and observing if the property is vacant or occupied first. There are websites that offer most of the public information necessary to evaluate a property and see if it’s something a potential bidder would be interested in attending an auction at. Public records in the city or town are also an excellent resource for information about the property. As a bidder, it is your responsibility to figure out as much as you deem worthy and important to know about the property before the real estate auction. The auction firm knows quite a bit, however, that shouldn’t stop you from rolling up your sleeves and finding out more about what you could potentially be purchasing. If you are new to the auction experience, you should also take the time to research what you should bring to the auction in terms of paperwork and forms of identification, after all, auctioneers are dealing with money.
Attending the Auction
After compiling all of your new-found knowledge on your potential purchase, it is now time for the most important part of the process; attending the auction. When attending a real estate auction, in MA, NH, and RI auctions are held at the property being auctioned by a licensed auctioneer. Bidders should plan to arrive at least 15 minutes prior to the scheduled time and introduce themselves to the auctioneer and register for the auction as well. When registering at the auction, a bidder shows the auctioneer a bank check and identification and asks if they have any additional information before the auction starts. Make sure you are prepared when arriving at the auction to register. The auction firm you have chosen should help and guide you so that you arrive with all of the necessary paperwork and identification to prevent any frustrations from occurring.
Find Real Estate Auction Listings With Sullivan & Sullivan!
Finding the correct auction firm, or even combing through the auction process can be daunting and not to mention confusing. That is exactly why auction firms such as Sullivan & Sullivan are here to aid you and make the experience all the more simple. You can access over 100 active auctions in MA, RI & NH at Sullivan & Sullivan Auctioneers LLC. Our auction company offers complete auction services for distressed and foreclosed real estate properties in the region so you are never alone in the process!
Sullivan & Sullivan Auctioneers, LLC is constantly scheduling hundreds of auctions every month with listings that include all kinds of foreclosed properties that range from single families to large commercial buildings. Our auction firm not only helps bidders through the auction process but also gives bidders an opportunity to stay informed about upcoming auctions in the region through our website. Visit the Sullivan & Sullivan Auctioneers website to find out exactly when and where the next auction will be! Trust us with all of your bidding needs and we promise we won’t let you down!