How We Do It
An unmatched and powerful presence in traditional and new media is how we showcase and promote auction properties like no other company. Our advertising efforts include our industry-leading website, billboards, television commercials, radio spots, newspaper ads and robust, multilayer social networking.
We are all witnessing the redefinition of traditional advertising mediums. An example is the shrinking and disappearing state of newspapers. Many newspapers, even big-city dailies, no longer exist and it may be only a matter of time before they all become unrecognizable in the forms we are used to today. As the media revolution of digital delivery and social networking continues to explode at an exponential rate, VacantLandAuction.com is particularly effective in this space. Our army of Realtors®, Auction Specialists and support staff are all uniform, in-sync and on-task in broadcasting the message and getting buyers to auction. Each of our associates has Internet networks totaling millions of people with interests in auctions and real estate ownership. These contacts are all leveraged via updates, postings and other outreach on these social media platforms.
Traditional Media, Non-Traditional Discounting
Our large purchases of traditional media means we are able to negotiate highly discounted rates. As an added benefit to sellers, VacantLandAuction.com shares the risk and contributes to the marketing dollars spent by each seller of absolute and minimum bid auctions for the marketing of their portfolio.
The weakening U.S. dollar and declining home values make real estate in the U.S. particularly appealing to international buyers. These buyers came from 53 countries around the world, primarily Canada, Mexico, the United Kingdom and China/Hong Kong as reported by National Association of Realtors. VacantLandAuction.com has multiple affiliate relationships with companies, institutions and investors around the world and records their buying criteria carefully in order to market the auction inventory to them effectively.
VacantLandAuction.com has a private database of wholesale buyers who buy in bulk and are invited to join each auction. They are typically cash buyers and are adding to their portfolio at an aggressive and continual pace. These buyers rely on VacantLandAuction.com to provide ongoing inventory.
Special end-buyer financing
Through exclusive lender relationships, we are able to offer creative financing packages that are not available to the public. These financing packages are what assure the sellers that more buyers are able to buy and are already approved before they attend the auction. In addition, there are special circumstances when the seller can contribute financing options as well, to be combined with conventional funding.
Our real estate auctions are marketed to investors all over the World. Over the last twelve months, over $67 billion dollars of U.S. real estate was purchased by investors from foreign countries as quoted by the National Association of Realtors. We have targeted the top 50 metro cities and 20 countries that buy U.S. properties and have affiliated with local real estate auction agents to attract these investors to our auctions.
How will an auction benefit me?
The real estate auction is a win-win proposition for everyone involved.
Benefits to the Seller
• 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 prospects
• Accelerates the sale
• Creates competition among buyers - auction price can exceed the price of a negotiated sale
• The seller knows exactly when the property will sell
• Eliminates numerous and unscheduled showings
• Takes the seller out of the sensitive negotiation process
• Ensures an aggressive marketing program that increases interest and visibility
Benefits to the Buyer
• Smart investments are made as properties are purchased at fair market value through competitive bidding
• The buyer knows the seller is committed to sell
• 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
About the Auctions Marketing Process
Preparing the Property for Auction
We will make recommendations for the seller on how to prepare a property for appeal to the widest audience. Discussions include: financing alternatives, legalities of title, property description. Upon receipt of an accepted auction agreement and the agreed upon advertising budget, which is paid in advance, VacantLandAuction.com will begin the advertising campaign.
In a comprehensive marketing campaign to locate the right buyer, a marketing program is individually tailored. A blend of targeted advertising, publicity, telemarketing, direct solicitation, on-site property & directional signage, World Wide Web exposure and direct mail marketing are all considered in strategizing the appropriate marketing campaign for your property. Also included in the promotion is the analysis of VacantLandAuction.com proprietary database of prospects and investors, utilized to find the right buyer.
Buyer Due Diligence
VacantLandAuction.com present complete due diligence information to facilitate buyer evaluation of properties before the auction.
Pre-planning ensures that the auction area conveys a "sales-friendly" atmosphere. After the auction, the high bidder deposits earnest money and signs the pre-approved real estate sales contract. Nothing is left to chance.
Post Auction Follow-Up
The closing of the sale usually takes two to four weeks after the actual auction. Experienced contract processing, follow up and follow through after the bidder becomes a buyer, guarantees a successful, timely sale.
Types of Auctions
Essentially, there are three types of auctions: absolute auction (or auction without reserve); minimum bid auction; and reserve auction (an auction subject to confirmation). Another type of auction is a foreclosure auction. The characteristics of each type of auction are outlined below:
• Property sells to the highest bidder, regardless of the price.
• Since sale is guaranteed, buyer excitement and participation are heightened.
• Generates maximum response from the market place, thereby being the only auction process to ensure attaining true market value.
• Many sellers, including financial institutions and government agencies, have begun to use this method more frequently since an absolute action offers the best performance results of all.
Minimum Bid Auction
• Auctioneer accepts bids at or above a published minimum price. This minimum price is usually stated in the brochure and advertisements.
• Reduces risk for seller if the seller wants a set price or will not sell. 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. It is not only difficult to set this lower figure, but there is a great risk of setting some form of anticipated value by using this figure.
• With a reserve auction, 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 usually will 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. The level of excitement at this type of auction is much lower, and this process affects attaining market value significantly.
• Mortgagor, through a legal procedure, forces the property to be sold thereby removing all existing deeds of trust on the property. This procedure, among other things, requires the sale to be promoted in the legal notices of the local newspaper several times prior to the sale and also requires the sale to take place within a time frame of several hours on a designated day on the courthouse steps. Although this procedure may resemble an auctioneer's method in some ways, it simply can be a legal maneuver to allow the existing mortgagor to reacquire the title of the property.
• An auctioneer's marketing strategy usually is much more detailed because the specific property is marketed throughout the community and other market areas. Advertisements, brochures and auction signs are utilized, along with soliciting as many bidders personally as possible. This marketing strategy entices the entire market place to be at the auction site, not on the courthouse steps, at a specific time, not within the time frame of several hours, to competitively bid among each other, attaining the true market value.
• Any artificial bidding such as a foreclosure by a seller or a mortgagor to protect his/her interest has nothing to do with the true value of the property. Artificial bidding can be a detrimental influence on the bidding of the market place itself, thereby diminishing the odds significantly that the property will sell for true market value. Such practices are not looked upon favorably by the real estate auction industry.