Seller Resource Guide
Why choose Legacy?
We welcome you to discover this exciting and advantageous method of sale. Thank you for the opportunity to introduce our services to you. Our team consists of trained professionals dedicated to selling your home, land, commercial and more for the most competitive price the market will bear. We devote considerable effort and strategic planning to each auction. From Day 1, we proactively demonstrate our innovative ways to find you a buyer.
Two of our real estate auction advertising postcards have won national marketing awards. This means you get the best advertising available. We’ve served as the primary resource for a nationally-syndicated newspaper article about offering your home by the auction method versus by traditional listing.
Homeowners and commercial property owners we work with are really not in a position of “having” to sell. There’s no desperation. No “fire-sale” mentality. No sheriff on the doorstep. In fact, they simply want to sell and want to have some control over the process. Saving money is a priority, time is of essence, and moving forward with their lives is more important than waiting around for one “right” buyer. Recognizing the importance of ongoing carrying costs, the marketplace increasingly appreciates the time value of money. As such, the volume of sales “by auction” is projected to reach a significant percentage of total U.S. real estate sales early in the 21st century, according to the National Association of REALTORS® (NAR).
Contrary to the outdated “fire-sale” concept, auction uniquely provides you the opportunity to attract the best of all willing buyers at one time in one place. The best buyer is the one who has been motivated by a desire to own your property and then actively and transparently competes with other bidders to win that property. Like no other sales method, auction:
- Accelerates the sales cycle: 30 days to prepare, 30 days to advertise, 30 days to close
- Saves thousands in commission fees, because the buyer pays the auction company commission
- Creates greater potential for higher sales revenue than typical sales methods where “list price” is a “limit price”
- Pauses the competition from other like homes or commercial properties for sale in your area until after your auction event
- Is the ideal low-stress solution for personal representatives and family members dealing with estate settlement
The main difference in auction marketing compared to other selling styles is the shortened time period. Your marketing campaign hits in an aggressive time frame that runs approximately 30 days leading up to your auction event. Your campaign is tailored to your needs and property type to maximize exposure in the most cost-effective way.
Your first thought may be concern over covering an existing mortgage. To “be sure,” some sellers want to list their house or property for a lot more than the market will bear because they:
- Expect it will allow room for negotiation
- Want “extra money” to start anew
- Think maybe someone will bite at that price
Not all that surprisingly, an overpriced property typically won’t sell, and the owner ends up both decreasing the price a little bit every month and spending time and money maintaining their ownership.
Auctions are designed to accelerate a sale by determining what the market is willing to bear. On auction day, the bidders who want it most will determine what valuation is acceptable for your home. In short, if the market value is at a level less than your existing mortgage, then that is the price you have to work with regardless of whether you advertise using the traditional method, the auction method, or the For-Sale-By-Owner (FSBO) method.
I spoke with a potential seller who said, “I can’t risk an auction.” Although she never clearly defined her thoughts on “risk,” I guessed it was because of her lack of equity in the home combined with her desire to obtain extra money to help with relocation to North Carolina. In cases where you have to get $ for your home because of a mortgage or loan, you may not be able to risk getting any less if you’re unwilling or unable to make up for any shortfall.
So you list, and you wait, and you bury St. Joseph. (Weren’t you supposed to be in North Carolina by now?) You pay mortgage payments, insurance, taxes, the landscaper, the snow removal guy, and eventually, your home sells for how much? What the market will bear – maybe your price, but maybe not.
Realistic Expectations of a Bidding War
With a traditional listing, you ask what you hope to get for your home or property and once it’s listed on the MLS, it establishes the top price for the property. It’s unlikely that someone is going to come with your asking price as their first offer, and doubtful their first offer will be higher. If your property is quite desirable, and you think you can sell it for full price on the first day it’s listed, why settle for whatever you think it’s worth? If you had an offer on the first day, wouldn’t you feel like you left money on the table? Like you didn’t ask enough? Like the buyer got a deal?
–National Association of REALTORS®
If your property is a candidate for auction, our usual recommendation is you first list your home or property for sale at auction. It’s fresh to market and no cap has been set on the purchase price.
The unique sense of competition, excitement, and urgency of an auction will often drive the price above the seller’s expectations. The top price at auction is not limited by a “list price” or “asking price” and when all bidders are afforded the equal opportunity to make their final bid, it represents the ultimate appraisal of the fair market value of the property.
Ask for a copy of our “Traditional vs Auction Method” brochure.
- Allows your choice of time, place, and terms
- Releases you to offer your home or property AS-IS
- Eliminates numerous or unscheduled showings and keeping neat and “show-ready” at all times
- Keeps the seller in control
- Reduces long-term carrying costs (mortgage payments, taxes, maintenance, insurance)
- Gives you the unfair advantage of focusing the entire buying marketplace on your property
- Provides predictable open house, sale, and closing dates, so you are free to move forward with plans
- Establishes a price floor and eliminates a price ceiling
- Ensures an aggressive marketing program that increases interest and visibility
- Offers a quick, fair, and transparent process for all parties
- Reveals the current fair market value of any property as established through competitive bidding
- Assures NO negotiations, NO contingencies, NO required inspection remedies, NO inadequate bank appraisals
- Exposes the property to a large number of serious, pre-qualified prospects who are prepared to buy
- Motivates buyers to act whether it’s a “Buyer’s Market” or “Seller’s Market”
- Requires potential buyers to pre-qualify for financing and/or submit a registration deposit
It’s no wonder buyers and sellers are choosing real estate auction now more than ever. Auction creates a compelling buyer opportunity.
If you are serious about selling, the auction method is an excellent option to help you maximize final sale prices on your schedule so you can move forward with your life. Here is a guide to what you can expect when selling at auction:
Day 0. Initial Call. It all begins with a confidential consultation that will set the stage for an active process. Here, we will learn more about your selling situation, expectations, and answer any questions you have about the auction process. The first step is to analyze your situation to determine whether auction is the right solution. Then we can set an appointment to visit your property. We’ll review the Agreements and marketing budget, gather appropriate information, discuss next steps and timelines, and take photographs.
Day 1. Strategic Planning. We conduct a thorough market analysis so we may apply our resources for the greatest impact. The research gives us insight on your goals, the property, the market, and potential buyers. It’s the foundation we use to effectively promote your house/property and attract the right bidders. We are ready to build a plan that makes the most effective use of our promotional tools and your advertising budget. The marketing plan is reviewed and finalized.
Day 30. Advertising Launch. Over the next several weeks, we will carry out the marketing plan that will reach a broad audience of potential buyers and help generate enthusiasm and urgency. As national award-winning marketers, our ability to promote your property is unmatched. Concentrated media including targeted mailings, direct invitations, and consistent follow-up with quick response are designed to promote your home/property in a way that traditional programs simply cannot compete. The auction will focus all eyes on your property and force buyers to consider your project before any others.
Day 45. Open House or Preview Day. Interested bidders are encouraged to attend the Open House to preview the house/property first-hand. During this pre-auction period, bidders may make proper arrangements for any inspections they wish. Owners should be offsite during the Open House.
Day 60. Auction Day. We’re always looking ahead and working to ensure your big day goes just as planned. By hosting the event at your property, bidders are reminded of the positives.
Bidders are registered. The Auctioneer reviews terms and conditions and answers final questions. The bid is opened and competitive bidding begins among registered bidders. The winning bidder is declared and the Purchase Agreement is signed. Each party will receive an executed copy of the Purchase Agreement. Owners may be on- or offsite during the auction.
Day 90. Closing or Settlement Day. We help ensure your experience remains pleasant and aggravation-free to the very end. Once the event has concluded, we will tie-up all the loose ends associated with transferring ownership of the property. The Buyer chooses his/her representation, and you may choose yours. The transaction is funded in the usual manner. We will assist in coordinating closing to process titles, deeds, and other documents. We will remain in contact with you as needed.
You’ll never be in the dark when it comes to your auction project. A real person answers the phone. We return missed calls promptly. We reach out with updates and milestones.
What’s your home worth? All you can get for it! How do you get all you can get for it? The quickest way to find out is to talk with us.