How to sell property online as a real estate auction

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  1. 1. How to Sell Your Property Online as a Real Estate Auction By David Brooks III LASTBIDrealestate.com
  2. 2. DAVID BROOKS I have developed into an auction-focused licensed real estate broker for LASTBIDrealestate.com. My real estate career started 1987 over 20 years ago in Grand Rapids, Michigan. I founded Brooks Real Estate Group in 1996. My real estate operations went regional into the Greater Metropolitan Detroit area in 2010. I have now expanded into regional auctions throughout the State of Michigan.
  3. 3. Theres been an explosion of auction popularity in recent years Online merchandise auction sites Popular TV shows focused on auctions Did you know that in many countries around the world, auctions are the preferred way to buy and sell real estate? Our international friends in Ireland, Australia and some nations in Asia have long taken advantage of all the benefits of real estate auctions. You can, too.
  4. 4. When buying real estate, would you like: The transparency of seeing other competing offers? No negotiation period? The ability to fully inspect your potential purchase? A set date of sale? The opportunity to get a good deal? To eliminate the seller and broker from any decision making? To eliminate broker favoritism? To eliminate discrimination? To eliminate the (behind the scenes) process traditional real estate adopts when making an offer? Then Choose a Real Estate Auction!
  5. 5. Auctions vs. Traditional sale AUCTION METHOD Known date of sale No buyer/seller negotiations Open, fair bidding. No best-guess offers Bidders determine Fair Market Value Buyers receive comprehensive due-diligence information Set closing date, usually 30 days or sooner after the auction date TRADITIONAL METHOD Sales process may take weeks or months Negotiations are often the sticking point in the process Offers can be rejected with no feedback Pricing is often set unrealistically Rarely is fully-detailed information available early in process Closing date is often TBD Heres a look at how an auction is better for the buyer than a traditional real estate sale
  6. 6. Virtually all types of real estate can be auctioned Single family Multi-family Condos Townhomes Commercial Investment Special-use Land Agricultural And More!
  7. 7. Some Example Properties Hawthorne, Florida USA Omaha, Nebraska USA Tierrasanta, California USA New Kent County, Virginia USA Fishhaven, Idaho USA La Terranas, Caribbean DR Gig Harbor, Washington USA Bonita, California USA
  8. 8. Some Example Local Properties Gross Point Shores, MI USA Detroit, MI USA Detroit, MI USA Detroit, MI USA Detroit, MI USA Detroit, MI USA Detroit, MI USA Detroit, MI USA
  9. 9. There are three popular options: Absolute Auction Minimum Bid Auction Auction With Undisclosed Reserve Lets take a look at an overview of each type of auction What types of auctions will I encounter?
  10. 10. Minimum Bid Bidding begins at a minimum, acceptable price to the seller. Less popular among bidders than the Absolute Auction, a Minimum Bid Auction nonetheless is attractive to buyers because the starting bid is typically set low enough to potentially provide a reasonable deal for the buyer. Auction Bidding Types Highest bid wins. Absolute Auctions generate by far the most interest among buyers because of the opportunity to win the property with just one more bid. Absolute Auction Undisclosed Reserve Only the seller, the auctioneer and the Auction Manager with LASTBIDrealestate.com knows a confidential minimum price at which the property can sell. Buyers may find this option less compelling because of the unknown minimum threshold their bidding needs to reach in order to purchase the property.
  11. 11. There are three primary ways youll participate in an auction: Live, In-Person Event Online-Only Event Live / Online Hybrid Event Lets see how each of these methods are defined What methods of auction will I be able to bid?
  12. 12. Online-Only Event Perfect for a listing or listings in which a live, in-person event isnt practical. With an Internet connection and a computer, bidding can be done from almost anywhere, on properties located almost anywhere, using the LASTBIDrealestate.com Online Bidding Platform. Auction Methods When most people think of auction, this is it. This type of event features a live auctioneer in an open-outcry setting. Qualified bidders raise their numbered paddles or bid cards when they wish to bid at the announced price, which is publically acknowledged by the auctioneer. A live, in-person event is typically held at a hotel ballroom or conference center for multi-property listings, or onsite at the subject property for a single listing. Live, In-Person Event Live / Online Hybrid Event A great combination that melds todays technology with tradition to throw open the doors for bidding from in the room, across town or across the world.
  13. 13. Question & Answer A: Absolutely not. Any real estate that can be sold can be auctioned. It simply is the fastest, most efficient and most transparent way to buy and sell. Q: Arent auctions used only for foreclosures and distressed properties?
  14. 14. Question & Answer A: Yes, select properties are sometimes available for sale without an auction. Use the contact information at the conclusion of this presentation. Q: Does LASTBIDrealestate.com ever offer listings that can be purchased other than via an auction?
  15. 15. Question & Answer A: We provide a comprehensive BIP (Bidder Information Package) downloadable via our website that includes many pertinent documents about the property. In addition, we encourage an inspection visit at an open house we will hold at the subject property, on an announced date and time. Q: Where do I obtain information about the property in which I am interested?
  16. 16. Question & Answer A: First, you must be a qualified buyer. That means able to purchase with cash, or with financing already in place. This is one of the main reasons auctions are fast and efficient. With qualification already in mind, lets look at an onsite auction followed by an online auction. Q: How exactly do I take part in an auction?
  17. 17. Participating in an Online Auction : Process End of Auction At the close of auction, the top bidder will be notified and provided with additional information about contact signing, supplying additional funds and completing the purchase. Fax or Scan (e-mail) Fax or scan-to-email proof of earnest money in certified funds (typically a cashiers check) to the title company or escrow agent specified $$ Earnest Money Deposit Follow the instructions regarding how much earnest money is required to participate in a given auction Registration Visit www.LASTBIDrealestate.com and register to bid online. Read and accept the Terms and Conditions. Confirmation An email will be sent confirming your bid and alerting you if a higher bid is received. Place another bid if you wish Placing a Bid When bidding is open, use the easy-to-navigate tools in the Online Bidding Platform to place your bid 1 2 4 5 63
  18. 18. Participating in an Onsite Auction : Process Registration Register with administrative staff and provide earnest money specific to the property(s) on which you are interested in bidding. This is typically a cashiers check made out to yourself, which will be held and returned to you if you do not place any winning bid Arrival Arrive at the designated location at least 30 minutes before auction time Bidding Raise the numbered card or paddle you have been issued to place a bid, following the bid callers lead Terms and Conditions Agree to Terms & Conditions Winning Bid If designated the high bidder by the bid caller (auctioneer) at the end of that property auction, proceed to the designated area to sign paperwork
  19. 19. Here are some of the many ways youll find auction events were holding and the listings that are offered: LASTBIDrealestate.com is an auction website with a dedicated, customized listing page for each property Local Multiple Listing Service Additional real estate-focused websites Brochures and/or flyers Direct mail Social media News releases Company newsletter Newspaper ads TV and/or radio spots Billboards Guerilla marketing How We Market
  20. 20. Marketing Examples
  21. 21. Buyers are charged a Buyers Premium, which is a percentage added to the hammer price (when the auctioneers gavel falls or when the online auction closes . Example: $150,000 hammer price + Buyers Premium (10%)* = $165,000 final sale price. *Buyers Premium may vary depending on auction How Much? How much will it cost for me to sell my real estate with LASTBIDrealestate.com?
  22. 22. About US Welcome to MIEDEMA Asset Management Group! Miedema Auctioneering Inc, Miedema Appraisals Inc, Repocast.com, Orbitbid.com, LASTBIDrealestate.com, Rangerbid.com, and OAS.com, is now conjunctively organized under the umbrella of Miedema Asset Management Group. For over 31 years, Miedema has formed seven different companies to meet the diverse demands of asset management solutions to serve all our clientele which includes bidding activity in all 50 states and over 150 countries" Services Provided by Miedema Asset Management Group: Real Estate Auctions Live Auctions Online Auctions Liquidation Auctions Online Auction Software Appraisals
  23. 23. Thank you! If you have any questions regarding selling your property online as a real estate auction please call David Brooks III 248.320.7741 or visit www.LASTBIDrealestate.com