Teaching Landlords to Find Their Quality Tenant!

Round Robin Auction

by Bert Cox

Selling your house by Auction – Will it get you the highest price in the shortest amount of time?

Selling by auction is extremely popular in many parts of the country but is just beginning to take root in New Hampshire.  Sellers like having anywhere from seven to fifty people competing for their house instead of the wait and see approach of traditional home marketing.  Sellers like the speed and efficiency of the sale and the ability to set the terms and know a date certain that the house will be sold.  Buyers like having an equal chance at purchasing the house and the new breed of buyer-friendly Round-Robin style auctions removes the buyer’s apprehension and assures maximum confidence in bidding.

How does the Round Robin Auction work?
The Round Robin Auction is a buyer friendly auction that eliminates all the usual risks associated with buying at auction.  On Saturday and Sunday, there is an open house to visually inspect the property, to review the disclosures and to receive the property information. The actual auction is held by phone on Sunday evening. Starting about 7:00 pm, each bidder will receive a call informing him or her of the current bid and inviting them to increase their bid in order to proceed to the next round.  Rounds will continue until only one winning bidder remains.

How are buyers and sellers protected?
Sellers are protected by the reserve price: the lowest price at which the home can be sold.  The high bid needs to exceed the reserve or else the seller will still own the house. Buyers are protected by the due diligence period during which they can inspect the home and ensure that there are no hidden defects and that the house is as represented. Some auctions require buyers to do the due diligence prior to the sale date, so if you’re buying at auction, be sure to ask.

What are the keys to a successful auction?

• Concentrated, Hi-impact marketing to ensure maximum exposure, maximum impact and maximum attendance on the day of the auction.
• Large buyers list of prospective home buyers reachable by direct mail and e-mail.
• Buyer friendly auction format.
• Low starting price to garner lots of calls and inquiries.
• Comprehensive information and disclosure packages for responding to calls and questions. 
• Extensive signage on day of auction at the property and nearby intersections.
• Capable negotiation before, during and after the auction.  

Is an auction right for your house?
The success of an auction depends on having the greatest number of possible bidders.  Homes in well populated areas like Concord and the surrounding towns, unique homes, vacation spots, waterfront homes, and commercial property all tend to do very well at auction.  Homes in isolated areas and raw land are a greater challenge and need careful evaluation before proceeding.

Bert Cox has over 20 years real estate experience, is President of the New Hampshire Real Estate Investors Association, an auctioneer, mortgage broker and real estate agent with KM Minemier and Associates.  He can be reached at 225-0097 or by email at Bert@BertCox.com.

Copyright © 2006 Bert Cox. All rights reserved.

courtesy of http://www.findthatqualitytenant.com

I am not a lawyer, therefore, if you have any legal concerns with anything in this article, please contact the appropriate legal counsel.

Thank You. Don Conrad

Copyright 2006 Blue Collar Publishers
www.findthatqualitytenant.com
e-mail: donconrad@findthatqualitytenant.com