Frequently Asked Questions
Frequently Asked Questions About Real Estate Auctions
What is the Market Value?
It is typically based on a traditional Real Estate Broker’s opinion of value, or an actual professional appraisal.
So How Does A Real Estate Auction Work?
The Seller pays a sale commission when the property is successfully closed. If there is no sale there is no commission paid.
The Buyer pays the closing costs at a successful closing, the same as in a traditional listed sale. The Seller and the Buyer pay prorated property taxes as outlined in the Real Estate Auction Service Agreement. Approved Bidders must present Earnest Money at the time a bid is submitted, as outlined in the Property Information Packet, that is held in an Escrow account until closing. All unsuccessful bidders will have their Earnest Money refunded. If the property does not close in the specified amount of time or the Buyer defaults, the Earnest Money is forfeited as liquidated damages. If the property does not successfully close due to Seller default, the Earnest Money is returned to the Buyer, and the Seller is charged a fee by the auction company as outlined in the Real Estate Auction Service Agreement.
Can the Seller set the reserve price?
The Seller will work with the Auction Division to establish a marketable reserve price. This can be either revealed or not revealed at the discretion of the Seller. The Seller also reserves the right to withdraw the property from auction, or to reject any and all bids.
Can I sell my property in “As Is” condition?
Yes, all property as outlined in the Real Estate Auction Terms and Conditions is offered in “As Is, Where Is” condition without any contingencies whatsoever and with no warranty. Sellers may offer and Buyers may purchase separate traditional home warrantees, and Buyers are urged to perform their own due diligence and may inspect the property before bidding, usually at the scheduled Open House, prior to the auction date or by appointment. You may also have a professional inspection at the Bidder’s own expense.
Will the property sell at a fair price?
As with any auction there is no guarantee that a property will sell at auction, but with informed and motivated Buyers and Sellers, a comprehensive marketing plan, and several marketing techniques, your real estate auction is an innovative and effective method of selling real estate that is the fastest growing sector of the real estate market. The Auction Division is committed to creating an environment where you can sell your property in the shortest possible period of time on the terms and conditions that are most favorable to you and where Buyers can make smart investments at fair market prices through competitive bidding.
How long will the auction process take?
Once an auction agreement is signed the length of the agreement is 90 days. This is the usual amount of time it will take to market, conduct the auction and successfully close a property. A Seller can extend a contract.
Is my property suited for auction?
Most properties are suited for auction including residential single family homes, town houses, condominiums, farms, vacant land, industrial and commercial property, and even vacation homes. The only way that you will know for sure is by calling Gail Sitterly, Head of the Realty Auction Division. She will be happy to talk to you and set up an appointment to give a free no obligation confidential consultation. Generally, if an auction is the best marketing strategy, the property will fit the Two-Thirds Rule. This involves analysis of the market, property, and the Seller situation. For Sellers that need an accelerated sale due to divorce, relocating, wish to liquidate assets or estates, are retiring, downsizing, have a listing that is about to expire, have already purchased another home, are having financial problems, are carrying the high cost of the property, or know that an auction will be bring a fair market price, these are good auction situations. A good auction property is one that has an owner’s equity of 25% or more, will attract and encourage competition, or will be offered without a reserve price.
Can I auction my real estate property if I am listed with another Broker or Real Estate Agency?
Talk to your Broker or Realtor. We welcome all inquiries. A motivated Broker will help you achieve your sales goal, and they can earn a commission if your property successfully closes at auction through the Realty Auction Division. A Seller cannot have two contracts at once, so once you are committed to a real estate auction contract you must end any current listing contract.
Can I make a pre-auction offer on the property?
Yes, You may make a written pre-auction offer to the Seller by submitting the offer on the Pre Auction Real Estate Offer Form as long as the offer is received before three days prior to a scheduled auction. The Seller reserves the right to reject or accept any or all offers. The Seller may also at their discretion conduct a Buy Now Price or Buy Out Price Auction. The Seller creates a fixed price auction that enables the Buyer to purchase at a fixed advertised minimum auction price within a fixed amount of time. Once a Buyer has signed the Real Estate Auction Purchase Agreement the auction is immediately ended.
Can you sell my personal property too?
Yes, since EXIT PREFERRED REALTY of Chambersburg, PA has a contract with Time Travelers Estate Sales, a PA licensed, bonded and insured Auction Company, Time Travelers Estate Sales can affect both real estate and personal property auctions. We would be happy to evaluate your personal property. In business since 1994 and conducting auctions since 1997, we conduct online and gallery auctions, estate sales, and tag sales. We specialize in museum collection de-accessions and the liquidation of private antique & collectable collections, and our expert consultant is a former Associate Decorative Arts Museum Curator with 19 years of experience. Professional services also include verbal appraisals and collections identification. Gail Sitterly, Head of the Realty Auction Division of EXIT PREFERRED REALTY, is a licensed PA Realtor, the Owner of Time Travelers Estate Sales, and is a member of the Pennsylvania Association of Realtors, the Pen-Mar Regional Association of Realtors, the National Association of Realtors, the Pennsylvania Auctioneers Association, the National Association of Estate Sale Coordinators and Liquidators, the Antiques & Collectibles National Association, The Costume Society of America and the Vintage Fashion Guild. We welcome all inquiries and the opportunity to assist you with all of your real estate auction needs. It is good to know that EXIT PREFFERED REALTY of Chambersburg, PA has a full service Realty Auction Division offering professional and personalized service to you and your family through every step of the auction process with a clear comprehensive plan and caring attitude. Call Gail today at 717-263-3555.