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Auctions are one of the oldest methods of trading property of any kind.  A research study commissioned by the National Auctioneers Association shows that auctioneering as an industry is on the rise.  Auctions are fun, exciting, and transparent.  Who doesn’t love to sit and listen to a good auctioneer, or watch the competition between people on their computer.  Auctions provide a fast and efficient way to buy and sell property.  We at Berkshire Hathaway HomeServices Caliber Realty have brought the auction method of marketing to the Brazos Valley.  Whether you are looking to buy or sell a piece of real estate allow the Berkshire Hathaway HomeServices Caliber Realty Auctioneers to serve you.

Selling at Auction

If your property is desirable, then an auction could be your first choice not your last choice.  Auctions create a buzz around your property unlike traditional marketing. With targeted marketing, and a pre-determined date and time for the property to be sold, auctions provide a platform to determine the true market value for a property.

Benefits to the Seller

  • 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. 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?
  • No limit to final sales price.
  • Assurance that property will usually be sold at true market value.
  • Sellers know exactly when the property will sell.
  • Auction goers come with money in their wallets, pockets, and hands, and are prepared to come home with property. It’s a seller’s delight!
  • Requires potential buyers to be approved for financing, and show proof prior to bidding.
  • Quick sales turnaround reduces long-term carrying costs, including taxes,insurance & maintenance.
  • Reduces numerous and unscheduled showings.
  • Takes the seller out of the negotiation process
  • Published Terms & Conditions of the sale reduces the contingencies which equates to a highly probability of closing the sale


Benefits to the Buyer

  • Buyers determine the purchase price
  • Auctions reduce time to purchase property
  • The buyer knows the seller is committed to sell
  • Auctions eliminate long negotiation periods
  • Buyers know they are competing fairly and on the same terms as all other buyers
  • Buyers receive comprehensive information on property via due diligence packet
  • Purchasing and closing dates are known
  • Smart investments are made as properties are usually purchased at fair market value through competitive bidding
  • In multi-property auctions the buyer sees many offerings in the same place at the same time


Reserve vs absolute auction

Selling your real estate through an absolute auction means the highest bidder gets the property no matter what the bid. Setting a reserve, on the other hand, requires the auction to reach a certain amount or there is no sale.

Absolute auctions heighten the excitement about the property, however there is no turning back.

Common wisdom among auctioneers is that a property advertised as being sold at absolute auction will attract more bidders and possibly higher bidding prices than one advertised with even a low minimum acceptable bid,or reserve price.

Reserve auctions protect the seller in an unstable market.  The seller can publicize the minimum bid or sell by owner’s confirmation. Owner’s confirmation gives the seller the ability to decide to accept the final bid price based on the interest and activity at the auction, instead of a hard set minimum bid price.

Call Berkshire Hathaway HomeServices Caliber Realty to discuss how you can buy and sell property at auction!


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