Arn B. Malmberg offers the best of both worlds to clients and customers. As both a Licensed and Bonded Auctioneer and a Licensed Realtor we are knowledgeable in both styles of selling, but we favor the Auction method. When selling real Estate at auction, we offer three auction methods:
Method 1 –
Absolute Auction
This means that the property will be sold to the highest bidder regardless of price. This type of auction draws the largest turnout of serious buyers and investors, since there is a guarantee that the property will be sold the day of the auction. Also buyers and investors know they have a good chance to buy the property.
Method 2 –
Subject to Owner Confirmation
This type of auction allows the seller to accept or reject the final bid. The excitement and urgency is somewhat lost in an auction subject to confirmation. Many buyers are not willing to participate in auctions subject to confirmation because the seller has the right to say no to the sale.
Method 3 –
Opening Minimum Bid or Hybrid Auction
At this type of auction, the opening bid is the minimum acceptable price that the owner will accept and is pre-determined and pre-advertised. This means that only one bid can buy the property and bidding starts at the minimum acceptable price.

The auction method can produce a "quick sale" without the high carrying costs and time is not wasted. An intensive advertising promotion prior to the auction date draws attention to the property, providing maximum exposure and visibility to potential buyers. Competitive bidding allows the property to be sold at a fair market value and provides the only potential of realizing more money than the anticipated asking sale price.

An "Open House" is generally scheduled several times prior to as well as the day of the auction. This allows brokers and prospective buyers to inspect the property before auction day. The amount of individual negotiations which make many buyers and sellers feel uncomfortable, is limited when using the auction method. Also, when selling at auction there are no lingering negotiations or sudden surprise offers and counter offers. There is a definite time and date which the auction is held and settlement to be within 60 days of the auction date. Most properties are sold "AS IS" with no contingencies, however, seller’s disclosure should be applied. Once bidding starts, price is always negotiated up, not down like conventional sales methods.

When offering tracts of land at auction, the owners have a chance to get literally all they can out of their land. Many times the seller can have multiple auctions out of one piece of property. They can sell their stand of timber or their gas, mineral & mining rights as well as crops and the land itself with royalties. All offered in a single or multiple auction.


 

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