Frequently Asked Questions

Click on a link to jump to a specific question. To have your questions answered, E-mail Auction Solutions International at: craig@auctionsolutionsinternational.com

What do the terms “No Reserve” and “Absolute” mean?

No Reserve and Absolute mean the same thing. Both of these terms mean that the property will be sold to the highest bidder regardless of the final bid price. Auction law is very clear about these terms and the seller is prohibited from bidding on the property.

What is a buyer’s premium?

The buyer’s premium is a commission that the buyer will be responsible for paying. For instance, if a 5% buyer’s premium is being charged an additional 5% will be added to the final sale price of the property.

Why do you charge a buyer premium?

The buyer’s premium has been used within the industry for approximately a decade. The auction method of marketing can be expensive for the seller so the buyer’s premium is a way to help the auctioneer make the auction method more affordable for the seller. Most auctions we conduct have a buyer’s premium. The premium can range from 3% to 10% depending on the property being offered for sale.

Who is qualified to bid?

Bidders must be registered with the auction company prior to the start of the sale. Typically qualified buyers must be at least 18 years old, possess a valid driver’s license, a proof of funds letter from their lender and be able to make the appropriate down payment at the conclusion of the auction.

What are the benefits of selling my real estate at auction?

Reduced marketing period
Definite sale date
The sale is without contingencies
Auctions freeze the market
Brings all interested parties forward
The seller sets the terms and conditions
Competitive bidding may result in higher than anticipated sale price
Reduces carrying costs

What is a typical timeline for an auction?

Ideally the auction should be held approximately six to eight weeks after the signing of the auction contract. This will ensure appropriate time for the marketing plan to be established and effectively executed. Some properties may take longer depending on the scope of the marketing to be performed. Properties to be advertised on a national level will require a longer marketing period. Please feel free to call us at any time if you have questions about the marketing of a specific property.

Can I establish a minimum price that I will accept for the property?

Yes, this minimum price is known as the reserve price. This price is known only by the auctioneer and seller.

How expensive is it to have an auction?

Marketing costs for a real estate auction are typically 1-3% of the estimated sale price of the property. These marketing costs are paid by the seller, but we do have ways of helping to minimize these costs and are even able to help recover some of these costs through a successful sale.

What if my property doesn't sell on auction day?

If the property does not sell on auction day, there are still options available. The auction marketing process draws all interested parties out of the market. Many properties that do not sell on auction day are sold shortly thereafter to an interested party identified through the auction process. If the property doesn’t sell on auction day we already have a list of qualified buyers and we will work diligently with the seller and the interested parties to execute a private sale as soon after the auction as possible.

Do you partner with Realtors?

Yes. We have valuable relationships with many real estate companies. We work with realtors on both the buying and selling side of transactions. When working with us realtor partners are compensated at the same level as they would experience in a traditionally listed property.

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