Selling Real Estate Through Auction

Our team of auctioneers answered some of the most frequently asked questions about selling real estate through an auction.

Why would someone choose to sell their real estate through an auction?

There are several reasons to sell your real estate through an auction. You have competitive bidding which is much more beneficial for the seller than going back and forth with a single buyer. You choose the date you sell rather than waiting for what could be for a long time for a “good” offer. It greatly limits liability; auctions are recognized as selling “As Is”. There are no contingencies for financing or anything else so you can be more certain your property will go to closing. Buyers can’t back out for any contingencies like financing or inspections. There is no risk to the seller, the seller has the option to accept or reject the high bid. However, the most important reason to sell your real estate through auction, is that it can put more money in your pocket.

Why do you believe there is more money to be made through selling at an auction?

The main reason is because of the highly competitive market and the competitive bidding environment of an auction. There are a lot of buyers for real estate, and not enough real estate for sale, so putting the buyer in the competitive bidding environment of an auction brings the highest prices, sometimes more than the seller hoped for, or than what it was appraised for.

What is the process of working with Miedema’s?

We start by coming out to meet with you, evaluate the property and determine what you need and want. Our team will then recommend the best way to sell the property. We will create a customized marketing campaign to market the property. We work closely with the title company that will handle the closing of the property. We handle every detail.

What is the seller’s involvement?

We work hand-in-hand with our sellers to communicate the entire process so that they are informed throughout the sale of the property. The seller can be involved as much or little as they want to be.

What is the auction timeline from start to finish?

The timeline is determined based on the type of property, from residential, to commercial, industrial, farm, or land.

Are there types of properties that sell better through an auction than others?

When people think about auctions most of the time they think about foreclosures or the distressed and hard to sell properties that they can get a “good deal” on when in fact, the highly desirable, and beautiful one of a kind properties are the auctions you hear about in the news setting record prices and far exceeding seller expectations. There is a reason celebrities sell their mansions at auction and the most famous painters sell their high end artwork and jewelry at auction and that is because auctions generate competition and more money!

Types of properties that sell well are:

Residential properties- an auction will spotlight your property above the rest on the market and will make potential buyers compete to be the high bidder. (we have even seen realtors try to replicate the competitive bidding environment by putting short term offer deadlines on a property they have listed).
Large tracts of land sell well at auction,
One of a kind properties like campgrounds and resorts, and beautiful, one of a kind properties like a water front home or lot sell very well at auction.

What should you look for in an agent or company to make your auction successful?

When you are looking to maximize the value of your real estate it is important to look for the following items:

A company or agent with a extensive client base and significant market outreach.
A company that has a reputation for honesty and integrity.
A company that can share references and testimonials from past clients that show they care about you and your auction.
Demonstrate a full-time commitment to their profession.
A company that will go above and beyond making sure your sale is a success. This includes a detailed marketing plan, professional photos and drone videos, and handling any necessary paperwork, land divisions, and approvals.

Can you explain how the land division process works?

Yes, if you have several hundred acres, a home with land that can be divided off, or a large commercial parcel, by dividing it potential buyers can bid on it individually, in any combination, or in its entirety. This ensures more competition and more money in your pocket. We will handle working with the county and township on all necessary forms, land divisions, and ordering the survey to ensure it is an easy and simple process for you!

Are there different types of auctions?

Yes, there are online auctions, live auctions (which we typically include an online bidding option) and traditional listings. Each property is different, so we believe in giving our sellers and our buyers options that fit their needs.

What sets apart an auction marketing plan from a traditional real estate agency?

An auction marketing plan creates a more aggressive approach to selling your real estate. Auction marketing targets buyers as opposed to listing your property and waiting for a buyer to come along.

An auction is an event that spotlights your property, setting it apart from the thousands of other listings.

This aggressive marketing campaign reaches a larger group of potential buyers, which, at the end of the day, generates higher selling prices.

Why should someone choose to sell their real estate with us?

The short answer is we will get you the most money for your property.

Our team puts in the time and effort required to sell your property for the most money possible.
We help you every step of the way – from creating a customized marketing plan, handling all the necessary legal requirements, surveys and closing on the property.

We believe everyone should have the opportunity to market their real estate to a worldwide audience.