South Florida Realty and Auction
561-781-2436 lpacel0833.aol.com
Welcome Real Estate Professionals
" A BAR SALE"
A U C T I O N
A "Definite Plan" for Success
The National Association of Realtors estimates over 50 billion dollars in real estate will be sold this year at auction and predicts this trend to continue at an increasing rate into the new millennium.
Real Estate professionals all over the country are substantially increasing their earnings by recognizing auction opportunities and forming affiliations with experienced, knowledgeable auction firms such as South Florida Realty & Auction.
South Florida Realty & Auction offers Realtors the information necessary to help recognize an auction opportunity and a "Realtor Friendly" co-brokerage program that fosters a "Win-Win" situation for all concerned.
Benefits of the South Florida Realty & Auction "Realtor Friendly" co-brokerage program include:
To learn more about the auction method of marketing, how to recognize an auction (you probably have at least one listed now), and how to participate in our "Realtor Friendly" co-brokerage program;
Read On!
Why Auction?
Auction properties sell fast! Auction marketing delivers a competitive cash offer with no contingencies in approximately 30 days. A definite, timely sale eliminates the costs associated with holding property and "frees-up" equity for immediate use.
Time Value of Money
The principal of "time value of money" is based on the premise that a dollar today is worth more than a dollar received at a future date. This concept is best illustrated when a winner of the lottery chooses an immediate cash settlement at a discount over the full prize paid out over 20 years. Auction sellers, because the date they receive their proceeds is certain, are able to take into consideration the time value of money as it relates to the sale of their property. When the time value of money and costs of holding property are calculated, very often sellers will find their net proceeds to be greater at auction than other methods of sale.
Recognizing an Auction
What Type's Of Properties Sell Successfully At Auction?
The type of property and circumstances surrounding the sale are important factors in determining a property's suitability for auction. The following types of properties have traditionally sold successfully at auction:
Estates:
Estate auctions draw a tremendous amount of interest and typically produce excellent results. The public perceives this type of auction to be the most credible and as a result buyers quickly become committed to the property. Personal property selling in conjunction with the real estate will attract a large crowd, which raises the excitement level for all. Our recommendation regarding estate matters is consider auction first!
Business Liquidations:
Business liquidation auctions are similar to estate auctions in level of credibility and added drawing power of personal property (office equipment, tools, vehicles, inventory, etc.). Proceeds becoming available on a pre-determined date is very often an important objective to a seller liquidating a business.
Large Divisible Parcels:
It is common for large parcels to spend extended periods on the market with little or no activity. By strategically dividing the property into multiple parcels, desirability is substantially increased and by implementing the proper sale order techniques, auction results often exceed the original list price.
Foreclosures:
Properties facing a foreclosure action should immediately be evaluated for auction. Sellers often wait too long in the hopes "something will happen" and end up selling at a substantial discount, or worse yet, losing the property. Auction marketing offers a "definite plan" to sellers facing foreclosure and ensures full equity recovery.
Commercial Properties:
Commercial Properties typically offer a diversity of uses, however, they rarely meet a buyers exact needs without substantial renovations. As a result, offers can be slow in coming and weighted down with contingencies. Auction Marketing takes full advantage of these properties desirable characteristics, creates a sense of urgency and competition among buyers and ensures a highest and best use offer with no contingencies in approximately 30 days.
Subdivision and Condominium closeouts:
When holding costs and the time value of money are considered, a timely sellout at auction of remaining lots or condos often net the seller substantially more dollars than an extended conventional campaign.
Waterfront and Golfcourse homes and homesites:
Properly conducted auctions of these types of properties generally produce strong interest and very good results. In many instances, a surrounding property owner becomes the winning bidder or was instrumental in notifying the buyer of the auction.
Unique or Unusual Properties:
Waiting for the "right" person to buy these types of properties can take an indefinite amount of time while costs of ownership continue to eat into the sellers net proceeds. Presenting these properties at auction leads buyers far enough along the path of commitment to see beyond any perceived negative characteristics and discover the possibilities these properties have to offer.
Relocations:
The financial burden and liability of carrying a vacant property for an extended period can be a cause of distress for many sellers. Auction services would deliver a higher net return to sellers who may consider discounting their property to effect a timely sale.
R.E.O.'s and Trust Properties:
The concept of "time value of money" and holding costs are well understood and powerful motivating forces to professionals in the financial community. Auctions on behalf of lending institutions are very well received by the public and generally produce very successful results.
Trophy Properties:
A relatively recent phenomenon, many sellers of premier properties are choosing the auction method. Properly conducted, these auctions become an event not to be missed and attract buyers who bring the resources and determination to win the property.
South Florida Realty and Auction "Realtor Friendly co-brokerage program"
How does it work?
Call us to discuss your listing and help determine if the property meets the initial criteria for selling successfully at auction. If so, a thorough evaluation of the property and your clients objectives will be scheduled. Part of the evaluation is helping you and your client gain a comfortable understanding of the auction process. By utilizing a common sense approach, auction results very often can be estimated within a reasonable range. Only after the determination has been made by all parties that auction results are likely to meet the objectives of the seller, will we recommend moving forward to auction. Our goal is for your clients net proceeds to be greater at auction than other methods of sale. If conducted correctly, IT WORKS!
50/50 Commission Splits
You control the listing and maintain your relationship with your client. We do the marketing and conduct the auction event. Our firms work together and share fees as we would in a conventional transaction. We work with you, not in place of you!
Market Exposure/ Post Auction Buyer List
Auction is listed jointly and marketed under your banner, significantly enhancing your image as a full service brokerage. Auction marketing generates and identifies many buyers who are prepared and motivated to buy property. Only one wins the property at the auction. You receive a list of all registered bidders as well as all interested parties who inquired about the auction.
Increased services / Income potential
Your affiliation with South Florida Realty and Auction allows you the opportunity to expand your services and significantly increase your income potential for virtually no cost.
How long does it take?
Most properties can be sold in 3 to 6 weeks. Settlement occurs 30-45 days after the auction date. As a result of a "no-contingencies" purchase contract, auction sellers enjoy a 95%+ closing rate.
What am I waiting for?
Call now to discuss the properties you feel may be right for auction. We look forward to working with you.
Robert Pacelli, President
Licensed Real Estate Broker/Auctioneer
561-781-2436
NATIONAL ASSOCIATION OF REALTORS
National Real Estate Auction Committee
AUCTION ADVANTAGES
Seller Benefits
Offers the seller another option.
Creates competition among buyers--auction price can exceed the price of a negotiated sale. An auction generates excitement and heightens buyer interest.
Auction creates the most exposure in the shortest period of time.
Requires that potential buyers pre-qualify for loans.
Accelerates sales.
Eliminates high seller carrying cost--such as interest, taxes, maintenance and debt service.
Auction brings interested buyers to a point of decision--they must act now or lose an opportunity to purchase.
Auction is a true market forum.
A seller can plan the date they want to sell.
A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction (depending on auction type), and actively participates in the sale process.
Auction eliminates numerous and unscheduled showings.
Auction takes the seller out of the negotiation process.
Auction is an aggressive, advanced marketing program that increases potential interest in and awareness of a property.
Seller is able to obtain liquidity.
Seller is able to move on to other investments and free up capital.