MORE ABOUT LIVE INTERNET WE REAL ESTATE AUCTIONS
A LIVE INTERNET WEBCAST REAL ESTATE AUCTION is scheduled
after you make the commitment to sell at auction. Then the marketing
campaign begins. A page on this site is dedicated to your LIVE INTERNET
REAL ESTATE AUCTION. This page will be packed with pictures, detailed
descriptions of your property along with copies of recent appraisals,
city/county assessment, the plat and all other pertinent documentation to
assist bidders in making an informed decision.
The property will be posted on many related web sites to broaden the scope
of internet exposure. Ads will be placed in area newspaper(s) with details of
the date and time of the LIVE INTERNET WEBCAST REAL ESTATE
AUCTION. A sign will be posted on the front lawn of the property. Bidders
WORLDWIDE will register and prequalify. Once qualified they will have
options to place proxy bids, absentee bids and/or attend the auction in
person or attend the LIVE INTERNET WEBCAST REAL ESTATE
AUCTION broadcast from their laptop, desk top or various blue tooth
devices and bid from ANYWHERE IN THE WORLD. At the conclusion of
the auction all contracts are signed by the highest bidder and the seller. If
not present on the property on the day of the sale the contracts are
exchanged by FAX and the originals exchanged by ordinary mail
afterwards. The terms and conditions of the sale require the high bidder to
submit a substantial deposit/buyers premium and usually allows the high
bidder to close on the purchase of the property on, about or within 30 days.
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WHY WE OFFER ONLINE AND LIVE INTERNET AUCTIONS:
The online auction business model is one in which participants bid for products and services over the
internet.
When one thinks of online auctions they typically think of eBay, the world's largest online auction site. Like
most auction companies, eBay does not actually sell goods that it owns itself. It merely facilitates the
process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for
individuals and businesses who use the site to auction off goods and services.
Several types of online auctions are possible. In an English auction the initial price starts low and is bid up
by successive bidders. In a Dutch auction, multiple identical items are offered in one auction, with all
winning bidders paying the same price -- the highest price at which all items will be sold (treasury bills, for
example, are auctioned this way). Almost all online auctions use the English auction method.
Strengths of the business
The strategic advantages of this business include:
The online auction business model is one in which participants bid for products and services over the
internet.
When one thinks of online auctions they typically think of eBay, the world's largest online auction site. Like
most auction companies, eBay does not actually sell goods that it owns itself. It merely facilitates the
process of listing and displaying goods, bidding on items, and paying for them. It acts as a marketplace for
individuals and businesses who use the site to auction off goods and services.
Several types of online auctions are possible. In an English auction the initial price starts low and is bid up
by successive bidders. In a Dutch auction, multiple identical items are offered in one auction, with all
winning bidders paying the same price -- the highest price at which all items will be sold (treasury bills, for
example, are auctioned this way). Almost all online auctions use the English auction method.
Strengths of the business
The strategic advantages of this business include:
- No time constraints. Bids can be placed at any time (24/7). Items are listed for a number of days
(usually between 1 and 10, at the discretion of the seller), giving purchasers time to search, decide,
and bid. This convenience increases the number of bidders. - No geographical constraints. Sellers and bidders can participate from anywhere that has internet
access. This makes them more accessible and reduces the cost of "attending" an auction. This
increases the number of listed items (ie.: number of sellers) and the number of bids for each item
(ie.: number of bidders). The items do not need to be shipped to a central location, reducing costs,
and reducing the seller's minimum acceptable price. - Intensity of social interactions. The social interactions involved in the bidding process are very
similar to gambling. The bidders wait in anticipation hoping they will "win" (eBay calls the successful
bidder the "winner"). Much like gambling addiction, many bidders bid primarily to "play the game"
rather than to obtain products or services. This creates a highly loyal customer segment for eBay. - Large number of bidders. Because of the potential for a relatively low price, the broad scope of
products and services available, the ease of access, and the social benefits of the auction process,
there are a large numbers of bidders. - Large number of sellers. Because of the large number of bidders, the potential for a relatively high
price, reduced selling costs, and ease of access, there are a large number of sellers. - Network economies. The large number of bidders will encourage more sellers, which, in turn, will
encourage more bidders, which will encourage more sellers, etc., in a virtual spiral. The more the
spiral operates, the larger the system becomes, and the more valuable the business model becomes
for all participants. - Captures consumers' surplus. Auctions are a form of first degree price discrimination. As such,
they attempt to convert part of the consumers' surplus (defined as the area above the market price
line but below the firm's demand curve) into producers' surplus. On-line auctions are efficient
enough forms of price discrimination that they are able to do this.
How to make a real estate
auction pay off
Tips for having a successful
auction
Bidders
Properties are sold as is.
There is a premium; High bidder
pays 10 percent above their final
bid to cover auction fees. ''You
bid a buck you spend a
buck-ten," said Jerome Manning.
Do not bid on a property if you
can't pay for it.
Don't be cheap: The rock bottom
increment a bid can be raised is
$1,000.
Don't be afraid to place a bid: It
can change the auction's dynamic
and get you a bargain.
Sellers
Know what you are getting into:
Research the process and ask for
and read documents setting the
terms.
Before entering a property in an
auction, attend an auction to
observe it.
In setting a ''reserve" price -- the
minimum sale price you're willing
to accept -- be realistic.
If no one bids above your
reserve, you are not obligated to
sell your property.
Do not attend the auction when
your property is on the block:
Facial expressions can give too
much away to bidders.
auction pay off
Tips for having a successful
auction
Bidders
Properties are sold as is.
There is a premium; High bidder
pays 10 percent above their final
bid to cover auction fees. ''You
bid a buck you spend a
buck-ten," said Jerome Manning.
Do not bid on a property if you
can't pay for it.
Don't be cheap: The rock bottom
increment a bid can be raised is
$1,000.
Don't be afraid to place a bid: It
can change the auction's dynamic
and get you a bargain.
Sellers
Know what you are getting into:
Research the process and ask for
and read documents setting the
terms.
Before entering a property in an
auction, attend an auction to
observe it.
In setting a ''reserve" price -- the
minimum sale price you're willing
to accept -- be realistic.
If no one bids above your
reserve, you are not obligated to
sell your property.
Do not attend the auction when
your property is on the block:
Facial expressions can give too
much away to bidders.
TYPES OF REAL
ESTATE AUCTIONS
Essentially there are three
types :
ABSOLUTE AUCTION
(or auction without reserve)
1. The property is sold to
the highest bidder,
regardless of the price.
2. Since a sale is
guaranteed, buyer
excitement and
participation are
heightened.
3. Generates maximum
response from the market
place.
4. Many sellers, including
financial institutions and
government agencies have
begun to use this method
more frequently.
MINIMUM BID
AUCTION
1. The auctioneer will
accept bids at or above a
published minimum price.
This minimum price is
always stated in the
brochure and
advertisements and is
announced at the auction.
2. Reduced risk for seller
as the sales price must be
above a minimum
acceptable level.
3. Buyers know they will
be able to buy at or above
the minimum.
4. The seller may,
however, limit interest in
the auction to only those
buyers willing to pay the
minimum bid price, and
therefore it must be low
enough to act as an
inducement rather than a
hindrance.
RESERVE AUCTION
( an auction subject to
Confirmation)
In this scenario, the high
bid is reduced, in effect to
an offer not a sale. A
minimum bid is not
published, and the seller
reserves the right to accept
or reject the highest bid
within a specified time --
anywhere from
immediately following the
auction up to 72 hours
after the auction concludes.
Sellers predetermine the
price at which the
property will be sold and
are not obligated to confirm
a sale other than at a price
that is entirely acceptable
to them. The main
disadvantage of a Reserve
Auction is that prospective
buyers may not invest the
time and expense of due
diligence when there is no
certainty they will be able
to buy the property even if
they are the highest bidder.
ESTATE AUCTIONS
Essentially there are three
types :
ABSOLUTE AUCTION
(or auction without reserve)
1. The property is sold to
the highest bidder,
regardless of the price.
2. Since a sale is
guaranteed, buyer
excitement and
participation are
heightened.
3. Generates maximum
response from the market
place.
4. Many sellers, including
financial institutions and
government agencies have
begun to use this method
more frequently.
MINIMUM BID
AUCTION
1. The auctioneer will
accept bids at or above a
published minimum price.
This minimum price is
always stated in the
brochure and
advertisements and is
announced at the auction.
2. Reduced risk for seller
as the sales price must be
above a minimum
acceptable level.
3. Buyers know they will
be able to buy at or above
the minimum.
4. The seller may,
however, limit interest in
the auction to only those
buyers willing to pay the
minimum bid price, and
therefore it must be low
enough to act as an
inducement rather than a
hindrance.
RESERVE AUCTION
( an auction subject to
Confirmation)
In this scenario, the high
bid is reduced, in effect to
an offer not a sale. A
minimum bid is not
published, and the seller
reserves the right to accept
or reject the highest bid
within a specified time --
anywhere from
immediately following the
auction up to 72 hours
after the auction concludes.
Sellers predetermine the
price at which the
property will be sold and
are not obligated to confirm
a sale other than at a price
that is entirely acceptable
to them. The main
disadvantage of a Reserve
Auction is that prospective
buyers may not invest the
time and expense of due
diligence when there is no
certainty they will be able
to buy the property even if
they are the highest bidder.
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| PUBLIC AUCTIONS INTERNET AUCTIONS |
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