Negative Myths and Positive Facts About Auctions

There are often myths associated with auctions. The key to a successful auction company is educating consumers and real estate salespeople, shattering the negative myths with positive facts.

Myth#1:
The reason people sell at auction is because they are in bankruptcy and their home or commercial property is in foreclosure.

Fact:
People that sell at auction are motivated sellers who want control over when their property will sell. They may be builders who are closing out on a building project, residential sellers or commercial sellers tired of hassles of the conventional method of selling real estate. They may be folks in the process of settling an estate or lenders looking for a rapid non-contingent sale.

Myth#2:
Whatever the auctioneer gets the day of auction is what I have to sell my property for.

Fact:
The Auction Method may not be what you think. You the seller choose how to sell your property. Sellers have three ways to sell their property:

1. Absolute - Sells at highest bid. 
2. Minimum Bid - Seller sets a minimum price he or she will accept.
3. Reserve Price - Seller reserves the right to accept or reject any and all offers.

Myth#3
If I work with a Buyer's Agent that person will not be paid.

Fact:
A commission will be paid to the licensed real estate broker who brings a registered client to the auction and that client is the successful bidder for the property.

Myth#4
If I buy a home at auction, I lose my opportunity for the property to be inspected.

Fact:
Potential buyers are given the opportunity to have the property inspected prior to the auction. They will be given names of professional home inspectors who will issue a written report. Potential buyers must pay for all inspections conducted and understand that the seller is not required under the auction contract to pay for any repairs.