Frequently Asked Questions

What is a real estate auction, and how does it differ from other types of real estate sales?
An auction is an innovative way to bring buyers and sellers together. It is a win-win situation: both the buyer and the seller benefit.

The buyer knows the seller is determined to sell, without the long negotiations and contingencies associated with other methods. The seller reaps the rewards of reaching a greater number of interested prospects who are ready to buy.

Are there different kinds of auctions? What are they?
Yes, and each type has its own advantages.

The absolute sale is probably what comes to mind when you hear the word "auction". The property is sold to the highest bidder, plain and simple. This type of auction, though not without risk, typically yields the best results because it entices more bidders: the property is guaranteed to sell on that day, and the competition encourages the kind of aggressive bidding that typically brings in the true market value of a property.

The reserve sale offers less risk, but does not always attract the sheer volume of bidders that the absolute sale is known for. In this type of auction, there is a minimum bid that must be met in order for the property to be sold. All auctions are with reserve unless stated otherwise. The buyers still bid freely, but understand that their bid may not meet the seller's reserve.

The minimum bid sale is a reserve auction sale, but the seller's reserve price is published. This type of auction works best when the minimum bid is still low enough to entice buyers to bid.

As a seller, how can I make the most of my auction?
You can start by choosing an agent that will handle your auction with professionalism and expertise from start to finish, including the advertising, marketing, conducting, and follow-through of the auction. With regard to the property, you should take the usual factors into consideration: the condition of the property, the location of it, the value of surrounding property, etc. These factors will help you determine a realistic price. You can trust Herrick to conduct your auction professionally and successfully.

As a buyer, how can I make the most of any auction?
With the assistance of your chosen real estate broker and attorney, examine the information provided to you, including the terms of sale and sales contract of the property you are interested in. Attend an open house to view the condition of it. Familiarize yourself with what you are bidding on, and whatever is included in the sale. When Herrick is the auctioneer, you can bid with confidence.

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