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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