PRIVATE AUCTIONS

Private Auctions are becoming a highly regarded and popular option for Sellers and Buyers on the Eastern Shore. Coldwell Banker Chesapeake Real Estate and DeCaro Real Estate Auctions have been selling luxury properties with professionalism and integrity for over thirty years. Experience counts, and lack of experience costs!

Coldwell Banker Chesapeake Real Estate, in strategic partnership with DeCaro Real Estate Auctions, Inc., is one of the first Brokers nationwide that, has adopted private auctions as an alternative to the traditional brokerage model. CB Chesapeake has embraced private auctions to augment, not replace, its unparalleled global electronic marketing capabilities, and traditional business methods.

NON-DISTRESSED AUCTIONS AND ACCELERATED MARKETING PROGRAMS:
 

BASICS AND BENEFITS

COLDWELL BANKER CHESAPEAKE REAL ESTATE COMPANY AND DECARO REAL ESTATE AUCTIONS INC. have joined forces, resources, and more than 32 years of experience in eastern shore real estate sales to create the Coldwell Banker Chesapeake Auction Division.

Real estate buyers are feeling very little urgency to buy today.  Values are falling in most marketplaces and are predicted to fall further; inventory is growing; and, traditional real estate marketing strategies are not attracting prospects. Buyers think they are in the driver's seat: if they buy it will be at their price, on their schedule, and on their terms. When they do buy, the sale often falls apart due to the Buyer's inability to obtain financing or the seller is compelled to take a further "haircut" to get to final settlement.

At the same time there are a growing number of Sellers who, for lifestyle reasons (births, death, health, divorce, relocation, financial reasons, etc.) want to sell their property for the highest price current market conditions will allow without waiting the months or even years it takes to find a buyer. Other Sellers don't want to wait while the market depreciates further.  A growing number of these motivated sellers and progressive real estate brokers are embracing the "Accelerated Marketing Strategy", also known as "The Non-Distressed Auction", to achieve their goals.  This strategy is not for everyone.

In some people's minds the term "real estate auction" evokes visions of old people in tears losing the family farm.  This paradigm couldn't be further from the truth. Auctions today are an innovative, intense and accelerated marketing programs designed to achieve for the Seller the highest price possible in the shortest period of time. This method can achieve a sale for a smart seller in five to eight weeks -start to finish.

BENEFITS TO THE SELLER OF A NON-DISTRESSED AUCTION: 

• Buyers come to the Auction prepared to buy;
• A timely sale reduces long-term carrying costs, including further property taxes and maintenance
• Sellers can have confidence that their property will be sold for its' true market value.;
• Sellers can have confidence that their property will be exposed to a large number of pre-qualified prospects;
• The Sale is accelerated. The need for months and years on market is eliminated;
• The Auction Creates urgency for Buyers to Buy. Properties are often sold BEFORE the scheduled auction;
• The Auction Creates competition among Buyers - auction prices can exceed the price of a negotiated sale;
• Potential buyers are required to pre-qualify for financing reducing the potential for "breakage";
• Seller knows exactly when the property will be sold. You can get on with your life!
• The Auction eliminates numerous and unscheduled showings;
• The Auction takes the Seller out of the negotiation process - no more last minute "haircuts";
• The Accelerated Marketing Strategy ensures an aggressive marketing program that increases interest and visibility;

 
BENEFITS OF BUYING AT A NON-DISTRESSED AUCTION:

• 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 Tailgate auctions the Buyer can see many offerings at the same time;
• The Buyer determines the purchase price
• Auctions eliminate long negotiation periods
• Auctions reduce the time required to purchase a 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

 
FORMAT OF A NON-DISTRESSED AUCTION

Coldwell Banker Chesapeake Real Estate Auction Division specializes in the non-distressed auction sale of fine Eastern Shore properties. Every property and every seller do not lend themselves to this Accelerated Marketing Program. Those properties that are suitable for Non-Distressed Auction are sold in one of two auctions formats:

 
PREVIEWS® AUCTION

PREVIEWS AUCTIONS are generally stand-alone, called-bid, auctions conducted on the premises of luxury properties that have a pre-sale estimated purchase price of One Million Dollars ($1,000,000.) or more. PREVIEWS AUCTIONS receive and benefit from individual Accelerated Marketing Programs.

 
TAILGATE AUCTIONS

From time-to-time the Coldwell Banker Chesapeake Real Estate Auction Division sponsors TAILGATE WEEKENDs when six to twelve properties, grouped in geographic proximity, will be sold on-site by the called-bid auction method. The auctioneer travels from property to property via automobile caravan. Prospective purchasers can join the caravan or meet at the property in which they are interested. TAILGATE AUCTIONS are promoted by a joint Accelerated Marketing Program.

TYPES OF NON-DISTRESSED AUCTIONS

ABSOLUTE AUCTION (or auction without reserve)

• The property is sold to the highest bidder, regardless of the price.
• Since a sale is guaranteed, buyer excitement and participation are heightened.
• Generates maximum response from the market place.
• Many sellers, including private individuals, financial institutions and government agencies have begun to use this method more frequently.
• This method generally delivers the best sales results for sophisticated Sellers.

MINIMUM BID AUCTION

• The auctioneer will accept bids at or above a published minimum price. This minimum price is always stated in the brochure and advertisements and is announced at the auction.
• Reduced risk for seller as the sales price must be above a minimum acceptable level.
• Buyers know they will be able to buy at or above the minimum.
• The seller may, however, limit interest in the auction to only those buyers willing to pay the minimum bid price, and therefore it must be low enough to act as an inducement rather than a hindrance.

RESERVE AUCTION (an auction subject to Confirmation)

• In this scenario, the high bid is reduced, in effect to an offer not a sale. A minimum bid is not published, and the seller reserves the right to accept or reject the highest bid within a specified time -- anywhere from immediately following the auction up to 72 hours after the auction concludes. Sellers predetermine the price at which the property will be sold and are not obligated to confirm a sale other than at a price that is entirely acceptable to them. The main disadvantage of a Reserve Auction is that prospective buyers may not invest the time and expense of due diligence when there is no certainty they will be able to buy the property even if they are the highest bidder.

PUTTING OUR ACCELERATED MARKETING PROGRAM TO WORK FOR YOU: 

• Remember, our Accelerated Marketing Program is an addition to our full service real estate brokerage - not a substitute. If your property is already listed with Coldwell Banker Chesapeake Real Estate Company please speak with your listing agent to see how this strategy can work for you. 
   
• If you are not currently listed for sale with Coldwell Banker Chesapeake Real Estate, or another Maryland Licensed Real Estate Broker, please contact our Auction Division at 410-822-9000 during business hours. Our trained auction associates will give you their Broker's Market Opinion (BMO) of the current market value of your property and discuss a marketing plan designed to achieve the highest possible sales results in the shortest period of time. Your trained auction specialist will describe the terms, costs, and conditions of the auction process. You can then elect the traditional brokerage process with an auction component or to proceed directly to an auction.
   
• If you are currently listed with another licensed Broker, please discuss this strategy with your listing agent. Suggest to your Listing agent that he or she contact the Coldwell Banker Chesapeake Auction Division on your behalf at 410-822-9000 during business hours.