Frequently Asked Questions

Real Estate and Personal Property Auctions

1. Can real estate be sold by live auction?

Yes, most definitely. Our auctioneers and associates have conducted real estate auctions in more than 40 states throughout the country. These auctions include both reserve & absolute auctions of agricultural, commercial, & residential properties.

2. Does one have to sell real estate at any price?

No, often the seller chooses to utilize a right of refusal, also called a “reserve” or “selling subject to the confirmation of the seller”. This option is entirely the discretion of the seller(s). Reasons for considering reserve vs. absolute would include aspects such as investment diversification, liens or mortgages against the property, family or business considerations, and the sellers’ personal tolerance for risk.

3. Is selling real estate by live auction popular?

Yes, it is. Auctions have been commonplace throughout the country in the agricultural and commercial arenas. The auction method of marketing is becoming more and more prevalent in the sale of residential real estate. It is, in fact, the most fair and accurate determination of value, regardless of property type.

4. Do prominent real estate agencies have their own live auction divisions?

Yes, some do, however most successful real estate brokerages in the conventional market choose to co-broker with a professional and experienced auction firm. This allows the conventional brokerage to focus on its core business while benefiting from the expertise of the auction marketing firm.

5. Are there advantages to selling real estate by live auction?

Yes, absolutely.

a). Live auctions provide sellers an effective and efficient means of selling real estate. The seller knows on what day his property will be sold, and under what set of terms & conditions.
b). Realistic sellers understand that today’s buyers are well informed & educated. Buyers know & understand market values as they have been actively shopping comparable properties. By utilizing the auction method of marketing, the offer/counter-offer approach is replaced by the highest bid under a given set of terms & conditions. This effects a sale within a relatively short period of time while maximizing the value realized.
c). Real estate sold at auction is typically sold “as is” with no contingencies. Attributes, defects, terms and conditions are disclosed in detail. Buyers should confirm all property information in advance of the auction and then bid accordingly. We only sell real estate with marketable title. Our buyers can always be assured that title will be conveyed free and clear of any other liens & encumbrances, other than those ordinary matters of record (Utility easements, Right of Ways, etc).
d). The purpose of an auction is to bring informed and motivated buyers to contract at the highest and best dollar value for your property, and to do so within a defined time period. In order to do this prospective buyers must be made to understand that the seller is truly motivated and not merely shopping the market. This is achieved by using a variety of marketing, advertising & sale methods to reach prospective buyers.
e). A well advertised live auction provides the seller a realistic valuation of what their real estate is worth today. Traditional appraisals typically reflect property values based on historical sales, but lack the ability to accurately compensate for current conditions, whether in a seller’s or buyer’s market.
f). Based on the principle of the time-value of money, an auction will usually net a greater return on the investment for the seller when compared to a traditional listing & subsequent sale. A dollar realized today is worth more than if acquired on a future date. Selling at a date certain allows you to predictably invest your money in a manner that will yield a greater return. Please ask our associates for additional information and supporting documentation.

6) Is it complicated or difficult for a seller to sell real estate at auction?

No, it is actually very simple. An auction agreement is much like a conventional real estate listing in that both specify the parties to the agreement (contract), property description, an effective date, and a termination date. The termination date is established with respect to the auction date, which is also specified. During the period between these dates the auctioneer will actively advertise, market, sell, and contract the sale between the seller and the buyer. He will then maintain communication with the seller, buyer, and closing agent until the transaction is properly completed. It is not only simple, but with a known date on which you will receive market value for your property.

7) What are the advantages of auctioning real estate and personal property at the same time?

a) A single and concerted marketing effort can effect the dispersal of the real estate and personal property in a timely manner while converting these assets to cash.
b) A combined marketing campaign for real estate and personal property generates a larger auction attendance. The reputation of previous owners or occupants can enhance the sale value due to historical significance or appeal.
c) Regardless of the real property type (agricultural, commercial, or residential), the seller will benefit from crossover buyers. Interestingly enough, many times a personal property buyer will become motivated to purchase some or all of the real estate.
d) Combination sales generate an auction atmosphere that actually becomes an entertainment event. Informed auction attendees tend to bid more comfortably and thus pay top market value. It’s all part of the overall value of the services provided by Oglesby and Company, Auctioneers.

Auctions, properly advertised & conducted, are very efficient, productive and beneficial for the private, corporate, and institutional sellers & buyers!