Auction InformationThank you for considering The Ligon Company for a professionally marketed and conducted auction.
Why Sell at Auction
Auctions are the most unique and valuable way of selling almost any type of personal property.
Some of the most popular auctions are those that involve household items, or livestock or antiques. But auctions involve so many more possessions: automobiles, office equipment, art, machinery, industrial equipment, electronics. One very rapidly growing area is real estate. More and more people are buying and selling their homes and land by the auction method.
People are Flocking to Auctions
Auctions are one of the oldest forms of selling property; their history spans centuries. And time has only increased their popularity. A research study commissioned by the National Auctioneers Association shows that auctioneering is an industry on the rise.
Did you know that more than half of the total U.S. population has attended a live auction? In 2004, the value of all goods and services sold at live auction in the U.S. was approximately $202.7 billion. This figure is up 6.8% over 2003 and translates into a huge number of satisfied buyers and sellers of goods.
They’re entertainment at their finest. That’s what most consumers say about auctions and that’s the number one reason they attend. So what makes them so fun and entertaining? Some say it’s the unexpected and the idea of experiencing something original.
- You set the date
- Extensive advertising specific to your property
- Buyers act on your schedule
- Realizes the property’s true market value
- Eliminates guesswork in determining the ask
- All conditions are set in advance, thus eliminating negotiations
- Property sold without contingencies
- May remain on market for months or years
- Minimal advertising, heavy reliance on featuring Multiple Listing Services
- Little motivation for buyers; you wait for them while the try to “wait you out”
- No Upside potential, limited by asking price limit on upside potential
- Seller risks overpricing, and thus seeing little price for the property interest, or underpricing and selling for less than the property is worth
- Seller must negotiate all aspects of sale
- Contingencies are common
All in all:
- 83% think auctions are an exciting way to get good deals
- 51% think they offer a great value on items
- 65% think auctions offer exciting items they wouldn’t otherwise purchase
- 53% like the excitement of getting a good price
In addition, consumers find auctions fun because they’re a rewarding activity for the whole family to enjoy. On average, consumers are willing to drive 1.3 hours to attend a live auction, with 75% bringing the family when they go.
The Value of Selling at Auction
So how can auctions benefit you, as a seller? Why are they the best way to sell property? Well, there are a number of reasons.
- Speedy Process, Quick Turnaround. An auction is immediate. It happens during a set time and is completed during that time. It’s quick and efficient.
- You Set the Time and Place of Your Sale. It’s as simple as that. You work with the auction firm to schedule what works best for you.
- You Know Exactly When Your Property or Goods Will Be Sold. There’s no wondering whether or not your property will sell. It WILL sell and it will sell during the set auction time.
- Comprehensive Marketing of Your Property. Part of conducting an auction is marketing it to the general public to get as many people there as possible. Auctioneers have comprehensive mailing lists they use to market their sales. They run advertisements, distribute fliers and more. They are marketing specialists. A good marketing effort can easily bring 300 to 400 people to your auction, or more!
- Buyers Come Prepared to Buy.
- No Negotiations. There is no haggling over price or merchandise. The auction method is quick and efficient. When people bid, they make a commitment to buy the property at that price without discussion or debate.
- No Leftovers and Little Clean Up. Every item at an auction goes up for bid and every item is sold. How many of you have ever had a garage sale and when you’re finished, you spend hours packing up what didn’t sell and looking for places to store it? With an auction, there’s no worry about what to do with leftover items because there aren’t any. This means very little clean up, also.
- Competitive Bidding. Auctions motivate buyers to perform. People get caught up in the competitiveness of the bidding and many times this drives the price of items higher. To some it’s like a game, and they want to win at all costs (or hopefully for you, at high costs!) And did you know that 9 times out of 10, an auction brings in the fair market value, if not more, for any item put across the auction block?
- Exciting Atmosphere. There’s no more exciting atmosphere than an auction. Crowds of people competing for property, combined with that lively auction chant makes for some great entertainment and fun. (Give them a sample of your chant.) It makes people feel good and makes them feel like spending.
- Auctions Work Well in Both Good and Bad Economic Times. People love auctions, because they love Statistics show, in a good or bad economy auctions remain a steady force. When the economy is bad, the auction industry does not feel the impact: people still flock to auctions.
Selling the Property: Logistics to a Successful Auction
We will determine if the best method of Auction for your property is a Live On-Site Auction, Online Auction, or Off-Site Venue.
Auction previews will be held onsite for prospective buyers to preview the property.
The day of the auction, The Ligon Company will provide an experienced and bonded auctioneer, bid assistants, as well as registration personnel – we want to ensure that your sale will be a complete success.
All prospective bidders will be required to register with The Ligon Company prior to the start of the auction. Proper identification will be required along with the completion of a bidder registration packet (which binds the bidder to the Terms and Conditions of the auction).
Real Estate Auctions:
The advantages to working with brokers are the large buyer pool they maintain. Realtors must register their buyers 48 hours prior to the auction, and accompany their buyer to the auction and one of the open houses. They must also submit an initial bid prior to the auction.
Terms of Sale:
A buyer’s premium will be added to the final bid and included in the total contract price; a non-refundable down payment will be due immediately after being declared the high bidder. This amount will be applied to the purchase price and will immediately be deposited into the broker’s trust account. The cashier’s checks will be immediately returned to all unsuccessful bidders.
The balance is due in cash of certified funds at closing within 30 days. A general warranty deed will be supplied by the seller at the seller’s expense giving marketable title subject to restrictions of record. Property taxes are prorated as of the date of the closing.
Advertising & Promotional Investment:
The only investment responsibility of the seller is the advertising and promotional expense as itemized in the Marketing Budget presented at the contract signing.
The commission is paid by the buyer in the form of the Buyer’s Premium. The Buyer’s Premium is an innovative commission structure, which passes along the commission expense to the buyer. The buyer is made aware of this fee by means of advertisements, the bidder’s information package, the contract, as well as being announced at the time of the auction. The seller understands that the seller nets 100% of the land minus liens, mortgages, etc. Commission details are further explained in the seller’s Listing Agreement. Seller does not keep the buyer’s premium and is payable to The Ligon Company.
- Association of Realtors Disclosure
- Property Information Checklist/Statement
- Copies of any existing appraisals, inspections, etc.
- Provide Environmental Report for subject property
- To adhere to the Terms and Conditions of the Listing Agreement
- Any other information which will assist of could enhance or affect the marketing effort
- Prepare site for tent, parking, concessions and auction day.