Real Estate Sellers FAQ

Fair market value is the price for which a property will sell on the open market between a willing buyer and a willing seller, neither being forced to buy or sell as of a specific date. Since auctions are the purest form of free enterprise, where the laws of supply and demand prevail, fair market value is the price that a property will fetch at a well-advertised auction. Other factors that come into consideration are location, age, condition, quality, size and desirability.

All types. Absolute Auctions & Realty has sold vacant land, building lots, single-family homes, multi-family homes, commercial buildings, condos, townhouses, subdivisions, sand and gravel mine, and industrial buildings.

The most important factors are your motivation to sell and the marketability of the property. The ideal candidate for the Auction Method would be a motivated seller who owes less on the property than what the current market is expected bring. Factors such as condition, location and amenities are also key.

Yes, most sellers have a mortgage and/or other liens on their property. You have until the closing to pay off any outstanding debts and provide insurable title to the successful bidder.

If a New York State title insurance company will insure the property at closing, you have completed your obligation to the buyer. All Absolute Auctions & Realty property auction offerings are sold with good, insurable titles and no liens, judgments, mortgages or back taxes. If the title cannot be cleared, the down payment is refunded to the buyer.

Yes, auctions can be “absolute”, “subject to confirmation”, with “reserve”, or with a “stated minimum”.

A property that is sold at absolute auction means that it is selling to the highest registered bidder regardless of price. There is no minimum, and the seller cannot reject the highest bid attained at the auction.

It means that the property is being offered to the highest bidder, subject to the seller accepting or rejecting the bid.

It is similar to the “subject to confirmation” auction, except that there is an undisclosed reserve dollar amount set by the seller. The property cannot be sold unless the bidding meets or exceeds the reserve.

It is an auction at which the seller announces the minimum bid before the auction starts and will sell the property once that bid is reached or exceeded. For example, if a property “shall sell at absolute auction at or above a minimum of $41,237”, if anyone bids $41,237 or more, the property will sell.

The buyer pays our commission in the form of a buyer’s premium. You, as the seller, do not pay a commission; however, you are responsible for the marketing expenses. For our part, Absolute Auctions & Realty will provide you with a budget and timetable, and we will execute the marketing.

A buyer’s premium is that portion of the commission paid by the buyer. It is usually a percentage of the bid price. The total sale price includes the high bid amount plus the buyer’s premium. For example, if a property sells for $100,000 and the buyer’s premium is 10%, the buyer will pay a total sale price of $110,000. At closing, the seller will receive $100,000 and Absolute Auctions will receive $10,000.

Typically, we recommend allowing 30 days from the time your property is listed until the auction date. This schedule ensures we have enough time for brochure distribution, posting signage, several rounds of advertising, and preview. If this timeframe is not workable, we will explore other options with you.

Absolute Auctions & Realty conducts an extensive promotional campaign for your property. The plan includes Facebook and Google advertising, signage, website listings, email blasts, and full color post cards. The advertising campaign is run for three-and-a-half weeks prior to the auction. The timely marketing creates a sense of urgency, which drives the most serious buyers to your auction.

Each bidder is on a level playing field before competing for your property. When registering, bidders must meet the following criteria:
(1) provide a valid form of positive ID (such as a driver’s license);
(2) sign the terms & conditions agreeing to the rules of the auction; and
(3) submit a bank check, guaranteed funds, credit card authorization form or cash for their initial down payment.
No one may participate unless they have properly registered. Within 24 hours from the close of the auction, the high bidder must have the full 10% buyer’s premium in house in addition to the signed non-contingent Purchase and Sale Contract. The bidder will agree to close within 60 days, and that “time is of the essence”, meaning that if they fail to comply, they have agreed in advance to forfeit their down payments and be responsible for re-marketing costs and any legal fees involved.

Yes, you will sign a real estate listing agreement provided by Absolute Auctions & Realty. If you would like to review a standard copy of our agreement before signing one for your property, we will furnish one upon request.

Absolute Auctions & Realty would like to have copies of any available documents pertaining to your property, such as the deed, the survey, the tax ID number, and a recent tax bill.

Yes! We share our commission with the real estate agency that brings the successful buyer to the auction. The agent would register you as their buyer with our Broker Participation form.

Yes, in addition to the website listing, ads and postcards, we also conduct an open house before the start of the auction. The preview is an opportunity for buyers to closely examine individual properties prior to the auction. We strongly recommend that all buyers preview properties before bidding, and that they take advantage of the opportunity to bring their contractor, home inspector or buyer’s broker with them for inspections.

Immediately following ending of the auction, the high bidder is emailed the non-contingent purchase and sale agreement. This document is signed and returned with the balance of the 10% buyer’s premium by 4PM the date after the auction.

No, the closing is the same. The main difference between private treaty selling and the auction method is how the purchase price is achieved. Once the auction is over, your attorney and the attorney for the buyer get together and arrange for the closing in the customary manner.

Absolute Auctions & Realty immediately notifies the backup bidder in order to secure a new purchase & sale agreement.