Question:
What type of property owners should consider using the
auction method?
Answer: Private and Corporate Property
Owners, Living Trust and Decedents Estates, Federal and
State Courts, Municipalities, School Boards, Prominent
Families, Financial Institutions, Fiduciaries, Trustees,
and Partnership Dissolutions.
Question:
Is the auction method ever used as a first selling method?
Answer: Yes - for quality properties
that have never been on the market and many that are clear
of mortgage.
Question:
What situations warrant using the auction marketing method?
Answer: When the
clients objectives are to sell the property in the shortest
possible time frame, at the highest possible price, under
terms and conditions favorable to the seller.
Question:
Are the courts receptive to the auction method for the
sale of decedents’ real estate?
Answer: The court system embraces the
auction method as a proven way to insure fair market value
in an arm's length transaction.
Question:
Should land that is prime for a builder's tract be sold
at auction, without subdivision contingencies, as opposed
to selling it privately to a builder, subject to the normal
one to two year land subdivision process?
Answer: Yes. The auction method should be considered no matter how difficult a possible sale may seem. Call Fuchs today at (212) 213-5755 to determine if the property and seller fit the profile of an auction candidate.
Question:
Will builders buy a major land holding without conditions?
Answer: Most definitely. Particularly
if it’s a high quality property for future development.
Question:
Can a bankruptcy auction be absolute and do the creditors
usually end up as the high bidder?
Answer: Today many bankruptcy real estate
auctions are absolute, allowing for the creditors to credit
bid. The purpose of having a professional auction firm
perform a high profile marketing and promotion campaign
is to develop a third party who will pay more than the
credit bidder.
Question:
When an absolute auction is conducted due to a partnership
dissolution, may one of the partners legitimately bid
at the auction?
Answer: Yes, remember transparency is a key ingredient in the auction process and the auctioneer must disclose that possibility.
Question:
Is it possible for an income producing property to bring
a sales price higher than normal, based on the current rate of return from present income?
Answer: Yes. Different buyers analyze their return
on investment in different ways and each will assign a different
value. There are also certain kinds of investment properties
that will sell best if they are offered in smaller parcels,
as opposed to trying to find a single buyer for the entirety.
Only the auction method allows for properties to be offered
separately in order to create a broader base of buying
power and the possibility of a higher selling price, all in one day.
Question:
Which is more effective: open public auction bidding or
sealed bid auction?
Answer: Although both methods are effective,
most real estate sold by the auction method is sold via
the open outcry forum. This forum creates increased participation and an upward momentum that allows the
bidding to become more competitive. Open outcry also provides an
element of theater and emotions. Sealed bid auction can be used as a valuable tool when we use it in conjunction with the open outcry method. For more information on this particular strategy, call Fuchs today at (212) 213-5755.
Question:
Can properties with serious environmental problems be
sold at auction?
Answer: Yes. However, the auction method does
not in anyway lessen the responsibility of the seller
to disclose environmental problems related to the property.
Question:
What if an attorney's client reacts negatively toward
the suggestion to consider the auction method?
Answer: Ask the client this question. "What would you do If you owned a rare
painting or a valuable sculpture"? Would they consign it to an art gallery or antique shop and hope for the best, or would they opt to engage Sotheby's or Christie's Auction Houses to expose their treasures to the widest possible audience and then to auction them to the highest bidder insuring the highest price possible.
Question:
What are the costs associated with selling real estate
by the auction marketing method?
Answer: The costs of having a real estate
auction are the direct expenses of advertising and promotion,
and the commission charged.
