A Real Estate Auction is a method of buying and selling real estate. It is an intense and accelerated real estate marketing process that involves the public sale of property through open, competitive bidding.

Generally, a public auction is for sale by owner. The owner is not in financial distress, but has merely concluded that selling his/her property via the auction process is the most effective method. As selling at auction moves towards further towards the main stream, more and more people are finding that selling their real estate at auction to be the best way to maximize value in a very timely manner.

A foreclosure, on the other hand, is a forced sale by creditors. These auctions are sight-unseen and are generally held on the courthouse steps of whatever county the property is located. There are many more differences that are examined later in the FAQ section.

 All that is required for a potential buyer to bid at all of our public auctions is cash or certified funds in the amount of the pre-determined deposit. Personal checks and letters of credit are NOT acceptable.

All of our sales are on an "as-is" basis. There are no warranties as to the condition and/or the fitness of the property for a particular use. We encourage our buyers to do their due diligence prior to sale day for their own protection.

A full buyer's package is available to prospective buyers, including appraisal, termite/moisture inspection, survey, and other documents relating to the sale of the property. This allows a potential buyer the ability to obtain financing prior to the auction.

The deposit will count as a credit towards the purchase price of the property and placed in escrow. Please note; it is the purchaser's responsibility to obtain financing. If you plan to use a mortgage to purchase the property, we recommend that you apply for the loan immediately.

A well-conducted real estate auction by its very nature minimizes such failures. Failure to close can happen, but it isn't frequent. If the rare failure to close occurs, the auction seller can turn to the next highest bidders, who demonstrated their willingness to pay nearly as much as the buyer who failed to close.

If the buyer fails to settle on the property, he/she will be considered in default of the sales contract. In this instance, the buyer might lose all or part of their deposit and potentially be responsible for the cost of reselling the property.

Generally, an open house is held approximately one to two weeks prior to the auction date. Additionally, we may arrange for a private viewing of the property at a mutually convenient time, depending on the circumstances of the auction.

Our service contract states that the seller must be able to deliver free and clear title to the property without any liens or judgments. The King Auction Group does not do an independent title search. In the case that free and clear title cannot be delivered by the seller, the buyer will be refunded his/her deposit.

The successful bidder is responsible for all closing costs including appraisals, surveys, termite/moisture inspections, and other charges as stipulated in our contracts. Closing costs can include, but are not limited to title fee and recording costs as well.

An absolute auction is a public auction without a reserve or minimum. This means that the property, once the auction begins, will be sold that day to the highest bidder.

An absolute auction, because of it's nature, generally draws a larger crowd with more intense competition.

The buyer's premium is a service charge that is added to the high bid for our public auctions. The King Auction Group charges 10% additional to the winning bid. In this regard, buyers pay our fee not the sellers.

There are 5 main advantages to a seller by having The King Auction Group sell your property for you at auction:

• Sell your property "as-is" for cash
• Pay no commission or settlement cost
• No fix-up costs or feasibility studies
• No financing contingencies
• Settle in 30-45 days

Buyers come prepared to buy. "Lookers" are eliminated because most often bidders must qualify through a deposit of a certified or cashier's check. Auction brings interested buyers to a point of decision. Buyers feel that if all the properties are sold before the auction ends it represents their last chance to purchase a desired property. Sellers get maximum exposure for their properties. The auction marketing strategy differs from conventional advertising. It is more concentrated, therefore more intense and visible. High carrying costs are avoided. Through auctions, the seller is in control and knows that if properly priced, his property will sell on a certain date, which is usually within 30 days from the date of the auction. By selling quickly, the seller is able to avoid high carrying costs such as insurance, real estate taxes, security and maintenance and is also able to benefit from the use of the monies to reinvest in other real estate or investment opportunities elsewhere.

Other benefits are:

• Offers the seller another option versus the traditional real estate listing. 
• Creates competition among buyers - auction price can exceed the price of a negotiated sale. An auction generates excitement and heightens buyer interest.
• Accelerates sales - the property can sometimes be sold within six weeks of listing.
• Auction is a true market forum - the highest buyer pays the lowest price a seller will accept.
• A seller knows exactly when the property will sell.
• A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction (depending on auction type), and actively participates in the sale process.
• Auction reduces the time the property is on the market.
• Auction eliminates numerous and unscheduled showings.
• Auction takes the seller out of the negotiation process.
• Auction is an aggressive marketing program that increases potential interest in and awareness of a property.
• Seller is able to obtain liquidity.

The only genuine measure of value of real estate is what someone else is willing to pay for it. An appraisal is merely an informed opinion. It is not an offer to buy. The real measure of value of real estate, at any given time, is what it will bring under competitive bidding from informed and motivated buyers.

When a seller signs our service contract there is a pre-determined marketing fee. The amount of the fee depends on the size of the property and the size of the necessary advertising campaign.

The seller also pays any up-front costs for the appraisal, survey, and termite/moisture inspections, for which they will reimbursed by the buyer at closing. 

If you are interested in selling a property or in receiving more information, please contact a King Realtor Group representative at 757-515-KING (5464) or click the Contact Us link above.

The real estate auction is definitely a win-win proposition for everyone involved. The seller disposes of properties quickly and efficiently, thereby saving long-term carrying costs such as interest, real estate taxes and maintenance. For the buyer this can mean a smart investment, since properties are usually purchased at fair market value through competitive bidding. Because the auction sale is conducted in an open forum, both motivated buyers and sellers have the assurance of watching the property's true market value emerge as the bidding process progresses. For both buyer and seller, fair market values for the property prevail. An auction creates competition among buyers and exposes the property to a large number of pre-qualified prospects. Because it is an accelerated sale, the property can often be sold within 6 weeks of listing.

• The desirability of the property being sold. This includes location, condition and surrounding properties.
• An aggressive marketing and advertising plan geared to prospective purchasers.
• Realistic expectations on the part of the seller.
• Selecting the type of auction that best suits the property and the seller's needs.
• Conducting the auction in a professional manner and following up through closing.
• Undertaking due diligence ahead of time so buyers are knowledgeable and the only issue that remains is price.

Most properties, but certainly not all, are saleable by auction. Residential property (including town homes, condominiums, cooperative apartments and single-family homes), commercial property, vacant land - even boat slips - are sold at auction. Some sellers try to sell unsuitable or unmarketable property through an auction. This is property that perhaps has been on the market too long, causing prospective buyers to consider it "tainted." Perhaps the project itself was poorly constructed or planned. These types of properties don't do well at an auction and most reputable auction marketing companies would not accept them.

One method used by auction firms to analyze the market, property and seller situations is the two-thirds rule. A general explanation of the rule is that if two out of three parts (market, property, seller) lean favorably toward auction, then auction should be offered to a seller as a sales option.

A free, no obligation consultation with a King Auction Group representative is the best way to determine whether you property is suitable for auction. Contact us at any time at 757-515-KING (5464) or click the Contact Us link above.

Yes. The auction marketing method has exposed the property to a large segment of the buying public. Many times a buyer who wants the property but is uncomfortable with the auction process will make an offer after the auction date. In other instances offers to buy the property prior to the auction date are made and accepted. 

Alternative marketing methods are available as well, and we can work with you to determine the best approach for your property.

Not at all. Real estate auctions reveal the true market value of a property because auctions are conducted in an open forum where all bids are known, and participants are given immediate feedback on the property's value. At auction, values settle at the level the market can bear, neither elevated nor deflated.

Anyone can benefit from buying at a real estate auction. For some, buying a home at auction is a realization of a dream. Empty nesters and investors also comprise a large segment of the auction buying public.

This varies greatly depending on the type and value of the property being sold. One of the essential underpinnings for a successful auction is a highly aggressive accelerated marketing program. Each auction has its own powerful promotion and advertising. Auction marketing is an intensive effort and a well-timed plan to create massive interest in the properties available for sale. The advertising budget is established according to specific properties and the type of market that's needed to be reached. That budget is then broken down into various forms of advertising that will best target the market for the auction. The various forms of advertising are: sale bills or brochures mailed directly to prospective purchasers and posted in public places, newspaper advertising in local and possibly regional or national papers, ads in trade journals and magazines, internet, radio ads, signs posted on the property and possibly television and cable ads, and phone solicitation. The King Auction Group is experienced in marketing real estate and knows which forms of advertising are best for a particular type of auction and its location and will facilitate everything from preparing the advertisements to placing them in the desired forms. The aggressive advertising hits large groups of buyers that will come and competitively bid on property thereby yielding true fair market value for a seller's holdings.

The buyer knows that the seller is fully committed to sell. Auction agreements obligate the seller to transfer title to the highest bidder in an absolute auction; the auction agreement obligates the seller to transfer title to the highest bidder that meets or exceeds the reserve price in a non-absolute offering. The buyer knows he is getting the property at a fair market price. The buyer feels comfortable with the purchase knowing that there is a contending bid just one increment under the purchase price. The buyer has negotiating power. The buyer can withdraw from the bidding at any time until the gavel falls. The buyer sees many offers in the same place at the same time. He is able to make market comparisons quickly and easily.

Other benefits are:

• Buyers set their own purchase price.
• Auctions eliminate sometimes long negotiation periods.
• Auctions reduce time to purchase property.
• Buyers do not have to worry about contingencies because purchasing and closing dates are known.
• Buyers know property owners sell at lowest price agreeable to them.

The time frame varies depending upon the type of property auctioned. Generally, our contracts stipulate a 30 day settlement from auction day to closing. Please see the specific terms for each auction to determine the length of time to close.

 When attending a real estate auction, look for:

• The availability of a Buyer's Information Packet on-site for bidders to review.
• The ease of the registration process.
• Enthusiastic and knowledgeable staff
• The availability of financial or pre-qualification services to bidders by the auction company.
• A clean environment and a pleasant décor.
• The use of quality photos, slides or videotape of the property during an auction.