Buying Real Estate at Auction: Top 10 Reasons It's the Smartest Choice

© 2014 RealEstateAuctions.comAll Rights Reserved
Buying Real Estate?
Use an Auction For the Best Results!

There’s been an explosion of auction
popularity in recent years
•  Online merchandise auction sites
•  Popular TV shows focused on auctions
Did you know that in many countries around the
world, auctions are the preferredway to buy and
sell real estate?
Our international friends in Ireland, Australia and
some nations in Asia have long taken advantage
of all the benefits of real estate auctions. You can,
too.

When buying real estate, would you like:
• The transparency of seeing other competing offers?
• No negotiation period?
• The ability to fully inspect your potential purchase?
• A set date of sale?
• The opportunity to get a good deal?
• To eliminate the seller and broker from any decision making?
• To eliminate broker favoritism?
• To eliminate discrimination?
• To eliminate the (behind the scenes) process traditional real
estate adopts when making an offer?

Then Choose a Real Estate Auction!

Auctions vs. Traditional Sale for
Buyers
Here’s a look at how an auction is better for the buyer than a
traditional real estate sale
AUCTION METHOD TRADITIONAL METHOD
Known date of sale Sales process maytake weeks or months
No buyer/seller negotiations Negotiations are often the sticking pointin the process
Open, fair bidding.No “best-guess” offers Offers can be rejected with no feedback

Bidders determine Fair Market Value Pricing is often setunrealistically
Buyers receive comprehensive due-diligence information Rarely is fully-detailed information available earlyin process
Set closing date,usually30 days or sooner after the auction date Closing date is often TBD
Virtually all types of real estate can be
auctioned

• Single family
• Multi-family
• Condos
• Townhomes • 
Commercial
• Investment
• Special-
use
• Land • 
Agricultural • 
And More!

Some
Example Properties
Hawthorne, Florida
USA
Tierrasanta, California
USA
Fishhaven, Idaho
USA
Gig Harbor, Washington
USA

Omaha, Nebraska
USA
New Kent County,
Virginia
La Terranas, Caribbean
DR
Bonita, California
USA
USA
What types of auctions will I encounter?
There are three popular options:

• Absolute Auction
• Minimum Bid Auction
• Auction With Undisclosed Reserve
Let’s take a look at an overview of each type of auction

Auction Bidding Types

Minimum
Bid
Auction
Absolute
Auction
Reserve
Auction

Highest bid wins. Absolute Auctions generate by far the most interest among buyers because of the
opportunity to win the property with just one more bid.
Bidding begins at a minimum, acceptable price to the seller. Less popular among bidders than the Absolute
Auction, a Minimum Bid Auction nonetheless is attractive to buyers because the starting bid is typically set
low enough to potentially provide a reasonable deal for the buyer.
Only the seller, the auctioneer and the Auction Specialist with RealEstateAuctions.com knows a
confidential minimum price at which the property can sell. Buyers may find this option less
compelling because of the unknown minimum threshold their bidding needs to reach in order to
purchase the property.

What methods of auction will I be able to bid?
There are three primary ways you’ll participate in an auction:
• Live, In-Person Event
• Online-Only Event
• Live / Online Hybrid Event
Let’s see how each of these methods are defined

Auction Methods

When most people think of “auction,” this is it. This type of event features a live auctioneer in an open-outcry setting.
Online-Only
Event
Live,
In-Person
Event
Live / Online
Hybrid Event

Qualified bidders raise their numbered paddles or bid cards when they wish to bid at the announced price, which is
publically acknowledged by the auctioneer. A live, in-person event is typically held at a hotel ballroom or conference center
for multi-property listings, or onsite at the subject property for a single listing.
Perfect for a listing or listings in which a live, in-person event isn’t practical. With an Internet connection and a computer,
bidding can be done from almost anywhere, on properties located almost anywhere, using the RealEstateAuctions.com
Online Bidding Platform.
A great combination that melds today’s technology with tradition to throw open the doors for bidding from in the room,
across town or across the world.

Question & Answer

Q: Aren’t auctions used only for foreclosures and distressed

properties?
A: Absolutely not. Any real estate that can be sold can be
auctioned. It simply is the fastest, most efficient and most
transparent way to buy and sell.

Q: Does RealEstateAuctions.com ever offer listings that can

be purchased other than via an auction?
A: Yes, select properties are sometimes available for sale
without an auction. Use the contact information at the
conclusion of this presentation.

Q: Where do I obtain information about the property in which

I am interested?
A: We provide a comprehensive BIP (Bidder Information
Package) downloadable via our website that includes
many pertinent documents about the property. In addition,
we encourage an inspection visit at an open house we will
hold at the subject property, on an announced date and
time.

Q: How exactly do I take part in an auction?

A: First, you must be a qualified buyer. That means able
to purchase with cash, or with financing already in place.
This is one of the main reasons auctions are fast and
efficient. With qualification already in mind, let’s look at an
onsite auction followed by an online auction.

Earnest Money Deposit
Follow the instructions regarding how much earnest
money is required to participate in a given auction
Confirmation
An email w illbe sent confirming your bid and alerting
you if a higher bid is received. Place another bid if you
w ish
5

Participating in an Online Auction : Process
Fax or Scan
Fax or scan-to-emailproof of earnest money in
certified funds (typically a cashier’s check) to the title
company or escrow agent specified
$$
2
3
End of Auction
At the close of auction, the top bidder w illbe notified
and provided w ith additionalinformation about
contact signing, supplying additional funds and
completing the purchase.
6

Registration
Visit w ww.RealEstateAuctions.comand register to bid
online. Read and accept the Terms and Conditions.
Placing a Bid
When bidding is open, use the easy-to-navigate tools in
the Online Bidding Platform to place your bid
1 4

Participating in an Onsite Auction : Process
Arrival
Arrive at the designated location
at least 30 minutes before auction
time
Registration
Register w ith administrative staff
and provide earnest money
specific to the property(s) on
w hich you are interested in
bidding. This is typically a
cashier’s checkmade out to
yourself, which willbe held
and returned to you if you do
not place
any “w inning” bid
Terms and Conditions
Agree to Terms & Conditions

Bidding Winning Bid Raise the numbered card or If
designated the high bidder by
paddle you have been issued
to the bid caller
(auctioneer) at the
place a bid, follow ing the bid end of that property auction,
caller’s lead proceed to the designated area to
sign paperw ork

Marketing Examples

Commercials
Flyers

Buyer’s are charged a Buyers Premium, which is a percentage
added to the “hammer price” (when the auctioneer’s gavel falls
to indicate a sale) of a property.
Example:
$150,000 hammer price + Buyer’s Premium (4%)*
= $156,000 final sale price.
*Buyer’s Premium will vary
How Much?
How much will it cost for me to buy real estate at an auction?

About US
We’re a national real estate company specializing in
auctions. We’ll sell your real estate using the fastest
and most efficient way of bringing buyers and
sellers together.
RealEstateAuctions.com was founded in 2010 by
the CEO of a successful and well-known real estate
brokerage of more than 20 years in Chicago. He
began using auctions as a marketing method and
soon decided it would become the sole purpose of
the company because of the speed, ease and
transparency auctions provide.
RealEstateAuctions.com is currently licensed in
most states, with expansion to all 50 underway. In
2015, the company expects to expand
internationally.

Thank you!
auction benefits for buyers, please contact me.
I’m happy to provide additional information.
Phil L. Stover
469-583-7690
PStover@RealEstateAuctions.com
www.RealEstateAuctions.com

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Buying Real Estate at Auction: Top 10 Reasons It's the Smartest Choice

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