Selling clients on a real estate auction!

Get your listings sold 

By Bernice Ross
Inman News®

Agents are constantly searching for great ways to market their listings online. Nevertheless, when you say, “auction,” the normal response is, “That’s not for me.” If you haven’t considered using auctions in your business, recent innovations may very well change your mind.

You may not realize how much you already know about the auction process. For example, have you ever bought anything on eBay or on any other site where there was online bidding? If so, you are already familiar with how the online auction process works. Auctions have become a popular way to market just about anything, including real property.

Most agents know that auctions can be an effective way to assist a developer in moving a condo project or new development. Furthermore, auctions also can yield higher prices to the sellers because of the competitive nature of the auction itself.

Nevertheless, the notion of holding an auction on one of your listings is pretty much a turn-off to most agents. The reserve and bidding process, as well as how the fees are determined, are all a mystery.

Basic concepts

Before exploring the various auction models that are out there, it’s important to be familiar with some basic terminology.

From the seller’s perspective

In virtually all auction models, a key decision the owner must make is to decide whether there will be a “reserve.” The term “reserve” means that there is a minimum price that the seller must receive; otherwise the seller will not sell the property. “No reserve” means that the owner has agreed to sell at whatever the highest bid is at the auction. Auctions where there is no reserve usually garner the most interest.

In the traditional auction model, the auction company handles the marketing as part of its fee. For the online models that work similar to eBay, the owner or an agent generally handles the marketing. The same is true with probates. The agent usually handles the marketing, while the court handles the overbids and sale process.

From the buyer’s perspective

In terms of the buyer, the auction may be held as a live event with live bidding. A second way to purchase is through a “buy it now” price that the owner sets up (much like on eBay) or the owner will take the best offer. The third model involves the owner setting a fixed price at which he or she will consider selling. Although Zillow is not in the auction business, the “Make Me Move” section of Zillow is modeled upon this approach.

In virtually all auction situations, including probate, bidders must do their own due diligence prior to the auction. Using probate as an example, there are no loan contingencies, no inspection contingencies or any other way out of the deal, except to forfeit your deposit, which is normally 10 percent. Bidders are required to arrive at court (or the auction) with a 10 percent cashier’s check made out to themselves.

The successful bidder immediately signs over the 10 percent nonrefundable deposit and signs a contingency-free contract agreeing to close within 30 days. The actual price is usually composed of the sales price, closing costs, and in many cases, a buyer’s premium that is added to the high bid.

What are the benefits to the buyer and the sellers of doing an auction? According to Realtor.org, benefits to the seller include:

• Buyers come prepared to buy.
• Quick disposal reduces long-term carrying costs, including taxes and maintenance.
• Assurance that property will be sold at true market value.
• Exposes the property to a large number of pre-qualified prospects.
• Accelerates the sale.
• Creates competition among buyers; auction price can exceed the price of a negotiated sale.
• Requires potential buyers to pre-qualify for financing.
• The seller knows exactly when the property will sell.
• Eliminates numerous and unscheduled showings.
• Takes the seller out of the negotiation process.
• Ensures an aggressive marketing program that increases interest and visibility.

In terms of benefits to the buyer:

• Smart investments are made as properties are usually purchased at fair market value through competitive bidding.
• The buyer knows the seller is committed to sell.
• In multiproperty auctions, the buyer sees many offerings in the same place at the same time.
• Buyers determine the purchase price.
• Auctions eliminate long negotiation periods.
• Auctions reduce time to purchase property.
• Purchasing and closing dates are known.
• Buyers know they are competing fairly and on the same terms as all other buyers.
• Buyers receive comprehensive information on property via due diligence packet.

Because many auction models actually highlight working with a REALTOR®, this can be one of the quickest ways to earn a commission.

Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, trainer and author of the National Association of REALTORS®’ No. 1 best-seller, “Real Estate Dough: Your Recipe for Real Estate Success.” Hear Bernice’s five-minute daily real estate show, just named “new and notable” by iTunes, atwww.RealEstateCoachRadio.com. You can contact her at Bernice@RealEstateCoach.com or @BRoss on Twitter.

Bid callers are competitive in nature, so when they have a chance to show what they can do in a contest, they jump at the opportunity.

Among the 30 contestants at the state-wide Bid Calling Contest held at the Annual Pennsylvania Farm Show, 30 professional auctioneers competed to see who is the most talented and effective “Bid Caller”. Among the contestants was Bill Bering Jr. of Fortna Auctioneers & Marketing Group (www.fortnaauctionerrs.com). Bill grew up in an auction household (Dad Bill Senior is a long time auctioneer himself) but still competed in the Farm Show contest as a “rookie”.  He overcame the “youth” tag (licensed less than 2 years) and still finished fifth overall in the contest.

“For a first timer in this event, it was a great accomplishment for Bill to finish in the top five. These Bid Callers are the cream of the crop in the State of Pennsylvania, many of them with years of experience” says Fortna Auctioneers’ Founder Michael Fortna, “We’re all very proud of him; Bill has a bright future in the business ahead of him”.

Fortna Auctioneers & Marketing Group operates throughout the United States, specializing in live and on-line real estate sales by auction. The company principals are Michael Fortna, Bill Bering Jr. and Bob Bering. For more information call 1.855.831.4242.

Central Pennsylvania did very well again, as Fortna Auctioneers & Marketing Group walked off with three top awards:

• Best Auction Marketing Promotion Literature
• Best Personal Property/Estate Planning Promotion, and
• Best Real Estate Auction Website (www.fortnaauctioneers.com)

“This is not the first time we’ve done well in this important peer competition,” says Fortna Founder and President Michael Fortna,” but it never gets old! Recognition like this shows the industry that we continue to, as our slogan states, “Driving the Real Estate Auction Revolution”. We are honored to have the Fortna Team recognized by our own industry peers”.

“The award that means the most to me is the Best Website,” says Fortna’s Bill Bering Jr., “when you talk auction revolution, it begins with the growing importance of the website as a marketing tool. The immediacy of the medium keeps our clients and prospects completely up to date on what we are doing, but it also allows people to bid for properties on-line as well as through the traditional live auction method. In fact, when you do them simultaneously, the dynamics of the process are taken to a new level. It is truly a revolution.”

Fortna Auctioneers & Marketing Group has been rapidly expanding beyond Pennsylvania’s borders. “We are actively dealing with sales in New Jersey, Maryland, Delaware and the mid-Atlantic Region. And we have a dynamic presence in Florida,” says Bob Bering. “Michael Fortna has finalized an affiliation with Atlantic Properties International, a real estate company with over 30 years in the South Florida market.”

“We have a bright future in store for Florida,” continues Michael Fortna, ”this affiliation marries the traditional real estate method of selling with our Auction Selling techniques, which we have developed over the last 30 years. It is a win-win business partnership.”

The principals of Fortna Auctioneers & Marketing Group are Michael Fortna, Bill Bering, Jr. and Bob Bering. The company now operates throughout the USA. For more information, call toll free 1.855.831.4242.

“We live by our mandate of driving the Real Estate Auction Revolution,” says Fortna Auctioneers & Marketing Group President Michael Fortna. “The methodology we employ, including live auctions, on-line auctions, or a combination of the two, has spelled success for both businesses and consumers who recognize the value of the auction method of selling property.  The Atlantic Properties team, which consists of broker associate Joe Shovels & sales professional Kip Reynolds, recognizes that working with us for selling by auction gives them a competitive advantage in their market.”

The Florida operation is added to the existing offices in Pennsylvania and Maryland.  It will concentrate on auctioning beach & waterfront properties, condos, commercial buildings, privately held property and bank portfolios.

Another strong feature of this partnership will be an expansion of international buyers.  Joe Shovels says, “A large part of the properties purchased in the south Florida market are foreign buyers.”

“Our system of selling has been developed and perfected over of 30 years,” continues Fortna, one of our strengths is our ability to look at the auction method from both the buyer and seller perspective, and create a win-win scenario for both parties. We encourage and acknowledge Broker Participation. Licensed real estate brokers and agents will maintain their commission integrity.  This is fundamental to our model.

“It’s also important to keep up with and leverage technology in the marketplace. Our website www.fortnaauctioneers.com provides opportunities to learn about auctions, our methods and information about upcoming auctions and how to bid.

“We see great opportunities Florida.  The market is rich with a future of growth and synergy for everyone involved.

“We are excited and confident to be offering this opportunity to buyers and sellers.  This is a great benefit and new exciting method for homeowners to sell their property quickly while still receiving market value” says Marzola. “We are working with Adam Oullette, Esq. of Spectrum Title LLC to streamline the closing process.  We’re even able to auction properties which currently listed as short sales.”

The Atlantic Properties Intl Inc. team coordinating our new affiliation with Fortna Auctioneers & Marketing Group consists of Master Broker Carl Marzola, Broker Associate Joe Shovels and Sales Professional Kip Reynolds.  The principals of Fortna Auctioneers and Marketing Group include Michael Fortna, Bill Bering Jr. and Bob Bering.  Fortna Auctioneers operates throughout the USA.

For more information call toll free 1.855.831.4242.

Today, thanks to advanced technology employed by Fortna Auctioneers and Marketing Group, sellers can attract potential buyers who can submit bids online as well.  In every selling scenario, Fortna Auctioneers allows the sellers the option to conduct online and live at the same time.

“We offer each seller a lot of tactical flexibility. Our online pool of buyers goes beyond the local market. The more bidders, the better it is for the seller”, says Michael Fortna. “We always take the no short cuts approach to marketing and selling our clients’ properties. It is an extremely important project for each client. We take that responsibility seriously. This keeps us on top of technology advances to make sure all options are open to us when we do the marketing plan.”

Some recent successes include the sale of residential and investment properties using both live and on-line strategies.

“Selling by auction is no longer a last resort for individuals and banks to sell real estate. The auction brings out today’s market value of any property. It also avoids a problem of lingering inventory,” adds Fortna. “Our company is experiencing rapid growth as a result of this attitude by sellers. We are continuing to grow as a company and now offer our real estate auction services not only in Pennsylvania, but in Florida and Maryland as well.  And we are attracting clients throughout the eastern United States”.

For more information about the award-winning Fortna Auctioneers & Marketing Group, call 1.855.831.4242 or visit www.fortnaauctioneers.com.

“The Fortna way of marketing and conducting sale by auction has been developed over a period of over 30 years,” says Michael Fortna, “Our methods are time tested and proven. We are structured to serve Clients anywhere in the country.” Other factors that affected the decision to expand include:

1. An increase in the use of the “Selling by Auction” method in the real estate and banking industries. Auction sales are quick and guaranteed. And the method establishes the true market value of any property.
2. A combination of business success and peer recognition. Fortna Auctioneers has won many industry competitive awards, the most recent a PAA “best website” award for www.fortnaauctioneers.com.

“We are prepared to accept new clients anywhere in the country,” continues Mr. Fortna, “the major concentration will be in the areas of high end real estate, and helping banks with their loan and debt portfolios. And because of our Global Internet System, we have access to both domestic and international buyers who are ready to deal, and procedures in place to assure that the transactions are handled in a way that is beneficial to both parties.”

The principals of Fortna Auctioneers & Marketing Group include Michael Fortna, Bill Bering, Jr. and Bob Bering. Fortna Auctioneers operates throughout the country with specific concentration in the Eastern United States.

For more information visit: www.fortnaauctioneers.com or call 1.855.831.4242.

Fortna Auctioneers & Marketing Group, based in Lebanon and Dauphin counties, is built on their track record of excellence in peer recognition. This year they took away a total of 5 awards for marketing excellence, including the coveted “Best Real Estate Auction Website in the State” for their website www.fortnaauctioneers.com.

Other award winning categories included:

• Residential Real Estate (for real and personal property)
• Mega Auction Flyer (2 awards)
• Mega Auction Newspaper Ad
• Company Stationery and Letterhead

“We have always done very well in this competition,” states Michael Fortna, “ but the recognition this year was exceptional, especially the Best Website Award.”

“Industry recognition like this reinforces the pride our team takes in being the best in our profession. But the real recognition comes from the work we do on behalf of our many satisfied clients. This is our greatest source of gratification”, concludes Fortna.

The annual advertising competition held by the PAA is open to auctioneers and auction companies throughout the State of Pennsylvania. Judging is done by independent marketing experts. These awards represent the highest level of auction marketing awards in the industry.

The principals of Fortna Auctioneers & Marketing Group include Michael Fortna and brothers Bill and Bob Bering.  Fortna Auctioneers & Marketing Group is based in Pennsylvania, but operates along the east coast and throughout the country. For more information visit the website, www.fortnaauctioneers.com or call toll free 1.855.831.4242.

Knowing how important social media and technology is in today’s marketplace, Fortna Auctioneers launched it’s Facebook page for clients and customers to be constantly updated on upcoming real estate auctions and receive up-to-date real estate auction news.

Make sure you click the “Like” button to become a fan of Fortna Auctioneers!

Fortna Auctioneers is also currently working with other banks throughout the state continuously adding properties for its 2nd MEGA AUCTION.

Fortna Auctioneers works hand in hand with brokers and realtors throughout the state of PA and across the country strongly encouraging BROKER PARTICIPATION.

Call our office directly at 717.867.4451 or 717.236.7888 for more information on the properties up for auction or visit our award-winning website: www.fortnaauctioneers.com.

Let Fortna Auctioneers take your auction experience to the cutting edge!

Fortna Auctioneers is currently booking properties at $400 per property.  Properties will be offered and sold in the order they are booked.  The right price for your property is set by competitive bidding and there is no faster, more direct way to establish your property’s value than the auction method.

Fortna Auctioneers works hand in hand with brokers and realtors throughout the state of PA and encourages BROKER PARTICIPATION! If a realtor has a client that wants to sign up their property and add it to the MEGA AUCTION, Fortna Auctioneers will handle all of the logistics and details.  When the property sells, you make your commission!

Call our office immediately to take part in this epic event and receive more information.  Please visit our website, www.fortnaauctioneers.com, to view properties that are already booked for the MEGA AUCTION.  Or call our office at 717.867.4451 or 717.236.7888.

Let Fortna Auctioneers take your auction experience to the cutting edge!