No Risk Real Estate Auctions For Non-Distressed Properties Love Auctions, LLC specializes in auction sales of Non-Distressed residential real estate for medium priced to high-end luxury properties, along with all types of commercial properties. By combining the traditional sales process together with the auction process, our NO RISK duel sales platform has been developed that greatly increases the efficacy of residential and commercial real estate sales. Duel Sales Program -The “No Risk” Love Auction Platform is a proven accelerated sales process that typically takes 30-45 days from the listing date to auction date. The overall cost to sell a property is substantially less than the traditional method. You pay lower sales commissions and the properties are sold in “as-is” condition, with no contingences to Buyers who also pay most, if not all the closing cost. This greatly increases the net proceeds you will receive at closing. Love Auctions are live auction events that are also simulcasted on the internet to attract online bidders. And it is a fast highly effective process!! Before the auction, we work with you to set an acceptable minimum sale price for the property, known as a “Reserve Sale Price” (the Reserve). We expect the competitive bidding at the auction will meet or exceed the Reserve and there is no limit to how high the bidding can go. However, should the auction bidding fall short of the Reserve, you may elect to accept the highest bid and proceed to closing or withdraw the property from the auction without incurring any cost whatsoever. The marketing of your property will continue through the traditional sales method by your current Broker/Agent until the property is sold. The Love Auctions platform is a No Lose-No Risk opportunity to sell your property quickly, without the hassle. Love Auctions attracts Buyers to participate in the auctions due to the transparency of the auction platform. Potential Buyers are provided with an abundance of information at our expense prior to the auction such as; a property appraisal, a home inspection report (complete with a termite report, radon and report) a lien search, photos, access to the property, along with all the customary information typically provided by a traditional listing agent. Removing the unknowns of a property being auctioned greatly increases the sale price. Real Estate auctions are no longer only for distressed properties. Real Estate auctions for mainstream properties have dramatically increased in the U.S. over the past few years. In states such as Tennessee, Alabama, Mississippi, Alabama and parts of Georgia, auctions are the primary method how residential real estate is sold.
Auction Advantages • • • • •
Lower Sales Cost-Bigger Net at Closing Seller Sets the Sale Price -No Risk! Accelerated Auction Sale (30-45 Days) Property Is Sold In “As Is” Condition No Contingencies
• • • • •
Qualified and Motivated Buyers Come to Buy Competitive Bidding Great for Sellers in a “Hot” Sellers’ Market Auction Price Often Exceeds Negotiated Sale Very Efficient Sales Platform
Auction v Traditional Sales Love Auction Sales Method The Seller is in control of the entire process
Traditional Sales Method Buyer is in control of the entire process.
FAST SALES PROCESS with predetermined auction /sale The property may sit on the market for months/years date & settlement date. with no predetermined sale or closing date. Entire Auction process usually takes 30+/- days. Closing The entire Traditional process usually takes over 180 occurs faster, usually 30+/- days after the Auction date. days. Contingencies eat up Sellers time and money. Closing from contract date can drag out for 60 -120 days and longer. The property is quickly sold in “As Is” condition for Cash. Financing and other contingencies from the date of contract slow the process. No price limitation. Final Auction price often exceeds the Limited sales price. The listing price is usually the traditional listing price of the property, especially in a hot highest price a Seller can achieve. Rarely able to market. negotiate sales price up, only down. Seller pays a minimal closing cost, increasing net Seller pays thousands of dollars in Closing cost proceeds. Buyer pays most, if not all closing cost. decreasing Sellers net proceeds Buyers bid competitively to purchase the property. Buyers submit low-ball offers and attempt to bargain Auctions create the sense of excitement and urgency and Sellers price down, using time as a pressure tactic. force Buyers to act. Less than 5% of Auctioned properties fail to close. 25-35%+/- of all contracts fail to close for one reason or another Auctions provide the Seller & Buyer a true picture of the Perceived market value is subjective. The estimated actual market value of the property on the day of the market value at the time of the listing often changes Auction. and may increase or decrease by the closing. An Auction focus is solely on Sellers property. No real focus on Sellers property. Just one of many of properties listed. Agents will show your property and countless others on the same tour. Little or no carrying cost after the Auction date. Buyer is Seller pays some or all carrying cost until closing. responsible for carrying cost from the date of Auction. Limited Property inspection. Showings are controlled by Potential Buyers create a never-ending inconvenience. Seller. The Seller sets the dates and times of showings. Strangers tramping through the property with little or no notice to and often going through Sellers personal property. Invasion of privacy. People who inspect the property, register to bid, post the People who inspect the property are often tire kickers, required deposit and attend the Auction are real Buyers nosey neighbors and/or financially unqualified to that want to purchase the property. purchase the property or simply sightseeing and wasting the Sellers time. If Auction fails to meet the Seller “Reserve” price and the If a Buyers opts out of the contract due to a contingency property does not sell, Seller still has Buyers that are or fails to close on the purchase, Seller has no other ready, willing and able to purchase the property. Often, prospective Buyers that are still in the market due to deals are made before and after the Auction takes place. the time lost. The entire long Sales process starts over.