SELLER INFORMATION FOR THE AUCTION PROCESS
SELLER INFORMATION FOR THE AUCTION PROCESS
When it comes time to market your assets, we take pride in offering solutions.
Our company was built by providing auction services to individuals, families, companies and other organizations wanting to liquidate real estate and equipment. Virtually anything can be sold at auction. Real Estate, equipment, livestock and personal property are just a few of the auction areas.
We hope this page offers some insight on how the auction process works, from beginning to end.
Every auction is unique and must be evaluated on its’ own merits. The following information is a quick overview to help sellers learn more about the auction process. These events are in the order of occurrence.
1. Get to know you and your goals.
We are always willing to meet to discuss the possibility of an auction with no obligation and no cost to you. During this time, we learn more about the real estate or equipment you want to sell, your goals and objectives. We work for you during this entire process and want to make sure we are on the same page from the very beginning. Often times we work with Sellers individually, but there are many times we work with Attorneys, CPA’s or Trustees working on the behalf of multiple Sellers.
2. Auction proposal.
Once we have evaluated your objectives as well as the current market and other factors, we will provide an outline of how the assets will be marketed. Ultimately we will sign a listing contract between our company and the Seller. Although we would prefer to do business the old fashion way, with a simple handshake, we understand the need to have a written agreement in place. This simply lays out the expectation of all parties involved. From here on, the work is on us.
3. Information gathering.
This is the step in which we get pictures of the property, obtain information (production history, lease information, etc.), take drone video, generate maps and other information to provide to potential buyers.
4. Marketing your property for 3 to 5 weeks.
Here we begin to market your property to the public. We promote your property via:
Online advertising on our website and beyond. Content on our website is ‘pushed’ out to many other online advertising platforms that are proven to generate qualified buyers.
The drone video is posted on our website and YouTube.
Your property will be promoted on our social media pages.
Direct email and mailing to our customer list that we have built since the beginning of our company in the early 80’s.
Our digital billboard on Interstate 40 is a great tool. We own and operate this billboard, ultimately controlling the content and how many times your property is displayed. Approximately 19,000 vehicles travel past our office each day on Interstate 40.
Distribute advertising materials such as brochures, postcards and newspapers. This might sound old school, but the power of direct marketing is still very real.
Radio advertising also continues to be a good tool.
We also seek industry specific advertising, depending on the property and our advertising timeframe.
5. Auction Day
The auction begins promptly at the appointed time. The process begins with the Auctioneer making opening remarks, summarizing the terms of sale, methods of bidding and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the auctioneer answering any final questions from the potential buyers.
6. The Auctioneer says SOLD!
From the first bid, things move quickly with bidders offering their bids up to the price they are willing to pay. The bidding process will slow down and when the Auctioneer determines that the final bid has been made, the Auctioneer will announce the parcel “Sold” and identify the high bidder. If the auction is “Subject to Confirmation”, the Auctioneer may “Rest the Bid” and take a short break to speak with the Seller. In a “Subject to Confirmation” auction, the Seller retains the right to accept or reject the high bid within a specified period of time. If the auction is for a single property this concludes the auction event. The Buyer and the Seller execute the Real Estate Purchase Agreement.
7. Closing the Transaction
Regarding real estate, the closing process begins with the abstract being brought up-to-date. In some states where abstracting is not used, a title insurance commitment is obtained. A title opinion is written by the Buyer’s attorney and any title defects are corrected by the Seller. During this time if a survey is required (if a property was divided into smaller parcels), we will coordinate a surveyor. We also work with the Buyers lender or appraiser, if applicable, to provide any information they need in order to keep the closing process moving smoothly. We will review closing documents on your behalf to verify accuracy prior to closing. At closing is when the deed is signed over and funds are dispersed. Closing on the property typically takes place within 30-60 days from the date of the auction. Closing is not contingent on anything other than clear title.
The process of closing an equipment auction is generally quicker than selling real estate. Payment to the Seller is generally made in 10-14 days. This allows adequate time for us to receive wire transfers from Buyers, obtain signatures on titles and, if applicable, lien releases from lenders. We work hard to streamline the entire process for you. From the day you decide to work with us to the day we close, we work hard to make the process of achieving your goals smooth for you and your family.