ABSOLUTE

In an Absolute Auction, the property will sell to the highest bidder regardless of price. There are no exceptions. An auction conducted as Absolute can generate strong interest because buyers know the property will be sold that day without exception. The Absolute method is an effective tool in certain cases and can help an owner sell a difficult or distressed property and move on. In certain areas of the country, selling Absolute is the most common method for the auction of Real Estate.

SELLER CONFIRMATION

The majority of the real estate we sell is sold with Seller Confirmation. In this method the seller retains a final right of refusal. The auction produces the highest bidder and the seller is presented with that bid along with a deposit check. He or she then accepts, rejects, or (as in a conventional sale of real estate) makes a counter offer, and a typical negotiation process begins. This method is very common in estate situations and also works well if a client is just moving across town. The added comfort of final right of refusal is a choice that many of our clients choose.

SEALED BID

In certain circumstances we sell real estate properties with the Sealed Bid process. Often times our sellers feel the potential bidders would have a better advantage to be the high bidder, if they were able to make a more formal offer, with more privacy.  Many times a property has some fix up and finishing possibilities.  This process helps the auctioneer and the listing broker to establish an ending bid price with an “open door” approach for the bidder to determine what fits best for that bidder/buyer.  What we mean, is that the interested party can purchase the property is “as is, where is” condition, finished by the seller/contractor, and even with upgrades.  The sealed bid process also usually includes the Seller Confirmation option and is much the same, except that the bidder/buyer can have the confidence and privacy prior to making their bid.  Our seller’s find this to be a very helpful tool.

HAMMER PRICE

The “Hammer Price”, in all cases is the final valuation of the item, lot or property being offered by the Auctioneer.  Some, Auctioneers, use an actual hammer or gavel, and use it at the end of a bid to signify the item has been sold to the highest bidder.  The auctioneer should also announce the words “SOLD’ following the falling of the hammer or gavel.  In other cases, the Auctioneer may not use any type of hammer or gavel, but simply say “SOLD”, and in this case, the bid would then be closed and the highest bidder would be the winner.

SOLD – MEANS – SOLD!!!

In all cases… “SOLD” means “SOLD”.  Explained in its most simple context, and a legal one as well, “Sold” always signifies the conclusion of bidding on a particular item, lot or property, to that of the Highest Bidder.

REGISTRATION & THE BID PACKAGE

All interested parties, individuals, investors, contractors, builders and brokers, and the like will be required to register within 24 hours prior to the auction starting time, or in the case of a “Sealed Bid Auction”, within 24 hours of the bid deadline.  Upon completion of the “Bidder Registration Form,” all parties will receive a “Bid Package.”  This package will contain all the necessary forms to be a bidder at the auction. 

BIDDER’S CARD

For onsite and live auctions, where the registered bidder is present for the actual auction, this bidder will receive a “Bidder’s Card”.  This card will have the Bidder’s registered number placed upon it for our, and your inventory records.  With this tool, the bidder, may use it to advance the bid in their favor.  The Auctioneer will advance the bid upon your and/or the other bidders command by simply raising the card.  More seasoned bidders may simply use a gesture, nod, wink, sign, etc. in order to bid.  In any case, all bidders must have a “Bidder’s Card” in their possession, but may use them at their own discretion.

BID INCREMENT’S

All Bidder’s are encouraged to make bids clearly visible to Auctioneer to avoid being missed.  The use of the “Bidder’s Card” is also encouraged, but not required in order to advance the bid as mentioned above.  The Auctioneer will sell Real Estate at Auction with Great Care.  Most trained Auctioneer’s pride themselves on being clear with their words, accurate with their increments, rhythmic in their chant, and aware of their speed. The Auctioneers chant speed will be half of what a bidder may typically hear at any other type of auction.  The Auctioneer may determine minimum acceptable increments to advance the bidding. Within 5 to 10 minutes, each property will be SOLD to the Highest Bidder.

PHONE & FAX / INTERNET / ABSENTEE BIDDER’S

We accept absentee bids by phone, by mail, via the Internet, in person, or by fax. Absentee bids from registered bidders are requested by no less than 2 hours prior to auction start time or deadline on the auction day. All absentee bidding is handled as though you are in attendance. All absentee bidder names and bids are held in strictest confidence, disclosed only in the event of a question after the sale. Absentee bidding is a convenience offered to our customers and while we will make every effort to execute your instructions, the Auction House and /or Auctioneer, is not liable or responsible for any errors or failure to do so. If you place absentee bids with the Auction House or Auctioneer, then choose to attend in person, bid by phone or by any other means, it is solely your responsibility to cancel any or all absentee bids prior to the start of the auction. The Auction House is not liable or responsible for any errors or failure to do so. Internet bidders are bound by the above and additionally, neither seller nor Auctioneer is responsible for any failure to execute absentee or proxy bids caused by human error, or electronic or technical failure of any kind. Should a dispute arise between two or more bidders, the decision of Auctioneer will be final.                                                                                                                  

BID RIGGING / BIDDER’S RIGS

BID RIGGING IS A VERY SERIOUS CRIME AND ANY ILLEGAL CONDUCT BY BIDDER OR OTHERS WILL BE IMMEDIATELY REPORTED BY AUCTIONEER TO THE U.S. ATTORNEY AND DEPARTMENT OF JUSTICE FOR INVESTIGATION AND PROSECUTION TO THE FULLEST EXTENT OF THE LAW. Title 15, Section 1 of the U.S. Code provides any agreement among potential bidders not to bid against one another, or otherwise to dampen the bidding process, is a felony under federal law. The law provides for fines of up to $10 million per violation for a corporate offender and $350,000 per violation for others, as well as imprisonment of up to three years.

WHY THE AUCTION METHOD?

The advantages are many. There are no contingencies in the auction contract. Our buyer will purchase the property in its As Is State and Condition. You will select a date and can plan your future around that date. An auction puts a halt to ongoing mortgage payments, utility bills, and taxes.  Competitive bidding creates interest which can help your property achieve market value and sometimes far exceed your expectations. In most cases we conduct two open houses where the property may be viewed and bidder information packets picked up. Showings to individuals only take place in cases where an interested party is unable to attend an open house. You are not on call for showings for months at a time. If time is of the essence, we can set an auction date and sell your property thirty days from time of listing. 

In Exclusive Cooperation with:

John Peters

 Independent Licensed Colorado Real Estate Broker

                               720.298.5101