Cell: 419-513-5048
Office: 419-238-9733
Fax: 419-238-5891
vwappraiser@gmail.com
Joe Bagley
Realtor and Auctioneer
- Residential Property
- Commercial Property
- Farmland/Farms
- Auctions
Joe has a diverse real estate career with 25 years of experience selling in Van Wert and the surrounding counties. Joe offers buyers and sellers a concise understanding of the market and how to best address their individual real estate needs. Buying or selling, contact your full-time agent at 419-513-5048. Joe has been a member of the OAR President’s Sales Club Award since 2008!
Auctions are the answer
The following are just a few documented advantages of auction sales:
For Sellers:
- Buyers come prepared to buy. Lookers are eliminated because bidders must pre-qualify themselves through a non-refundable deposit if they are the successful bidder.
- The auction creates a sense of urgency and brings interested parties to a point of decision.
- Auctions create maximum exposure for the property. Auctions are a concentrated effort, so the exposure and efforts are more intense and visible.
- The seller avoids high carrying and holding costs.
- Auctions create and increase buyer competition for the property.
- The seller can set a specific date, time, and location for sale of the property.
- Seller controls all of the sale conditions and terms.
For Buyers:
- Buyers know the seller is committed to sell.
- The buyer knows he is getting the property at a fair market price set by public bidding.
- The buyer has full control of what he wants to bid to own the property.
- Auctions reduce the potential negotiating time for the buyer.
Auction Types
Absolute Auction
The real estate sells to the high bidder. The seller does not reserve the right to decline the final bid received by the auctioneer. Absolute auctions generate maximum buyer response. However, it is important to recognize the market risk potential for the seller.
Auction With Reserve
The seller reserves the right to accept or decline the final bid. Auctions with reservation may or may not have an advertised minimum bid. The advantage to the seller is that he or she is not obliged to accept any price other than what he or she and the auctioneer have established as a reserve price for the property. The drawback is that some buyers may not want to invest the money and time in researching a property sale that is subject to seller approval of the final bid. Reasonable reserves combined with normal economies typically produce a property’s true market value on the day of the sale.
Marketing
An aggressive marketing program is critical to an auction’s success. Interest must be created in the property. The advertising budget is set according to specific properties and the type of market that needs to be reached. The budget is then broken down into various forms of advertising that will best reach the market for the individual property. Direct mail, newspapers, trade journals, radio, property signs, telephone solicitation, property brochures, and the internet are all avenues available, depending upon the type of property, location, size of the market area and the estimated value. The auction staff will devote many days prospecting the market to identify potential buyers and discuss their interest in the property to be offered.
Time Frame
The allowed time for a real estate auction varies depending on the type of property, but generally it is 60 to 90 days from the initial planning stage to closing. The auction itself may take from just a few minutes for a single property to several hours for multiple parcels or properties.
Auction Terms
The seller sets the terms and conditions of the auction, with advice of the auctioneer. The terms must be in balance…keeping in mind that there are two parties in the transaction. There should be no contingency clauses on auction day. All possible concerns and questions of the buyers should have been addressed prior to the sale day. Usual terms are that the high bidder(s) deposits with the auctioneer an advertised earnest money deposit (% of the purchase price) and enters into a pre-approved contract immediately following the auction. The balance is paid in 30-60 days with delivery of good title from the seller.
Market Conditions
When a property sells, the market conditions must be evaluated by the owner and auctioneer. Time of year, length of possession including crops, taxes, crop prices and overall market economic conditions all play into the number of potential buyers available to bid on a property. Buying a farm is a large investment and profit margins fluctuate annually so a property should be marketed when the optimum number of potential buyers are available. Your auctioneer can assist you with current market conditions and demand based on your individual property.
To discuss the sale of your property and current market conditions, contact Joe Bagley, at Straley Realty & Auctioneers, Inc.
