Frequently Asked Questions

I am not in financial trouble, and I’m concerned about what people might think if I should auction my property.

You are not alone in your concerns. There are great differences in the marketing and the public image of a voluntary, by choice auction such as our verses a distressed property auction. Our auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price for your property. The vast majority of sellers are people just like you, who are serious about selling and want to avoid the lengthy sales process of other methods. Auctions are the "smart alternative" to other sales methods.

What about the net amount I’ll realize from an auction; I need to cover my mortgage.

We understand your concerns and your need to cover an existing mortgage on your property. Auctions are designed to accelerate the sale of property by determining what the market is willing to bear. On auction day, the market will determine what valuation is acceptable for your property. The fact that you are doing an auction does not decrease the market value of your property. In short, if the market value is at a level below your existing mortgage, then that is the price that you have to work with regardless of whether you use the traditional method or the auction method to sell your property. It is possible, however, to auction your property with a minimum price that you are willing to accept.

My property is priced below the market right now. What is this going to mean if I choose the auction method?

Often times we find that price is not the primary reason for a property not selling. The primary cause for it not selling is due to inadequate traffic, and therefore, insufficient interest in the property. In other words, it has become "stale" on the market. The auction process is the best way to revive interest in the property and instill excitement that will result in a positive sale.

Are there different types of auctions?

There are two types of auctions available through Ranchline: Absolute and Reserve.

Which is the best auction method?

The surest way to effect a sale is to auction Absolute. Through an absolute auction, the property is advertised as selling regardless of price, which typically generates a much greater interest among potential buyers. This results in greater attendance at the auction and in the property realizing its greatest potential. With a reserve auction, the seller establishes a confidential reserve price and has the right to accept or reject the highest bid if it falls below the established reserve. If the reserve method is chosen, it is imperative that the reserve be realistic. This allows the bidding to start at a price that will capture the interest of all potential buyers and will create excitement and momentum in the bidding.

Who pays the auctioneer’s fee?

The buyer does. The Buyer’s Premium (usually a percentage) is added to the winning bid to determine the final purchase price. The Buyer’s Premium has been in use in the auction industry for many years and is considered a standard business practice. The use of a Buyer’s Premium is only one of several terms and conditions that govern an auction. As with the terms and conditions, the buyers are aware, prior to the beginning of an auction, that the Buyer’s Premium is going to be used, and it is noted in print.

What can I expect during the auction marketing campaign?

The period between when you sign an auction agreement and the actual auction day is referred to as the marketing period. During this time, our marketing department will be working diligently developing and implementing each aspect of the marketing campaign that has been outlined. We will also be mailing informational packets to prospective buyers, as well as working with prospective bidders, generating leads, and answering any questions or concerns you may have.

How often do you hold auctions?

We conduct auctions year round and on any day of the week. Ranchline will work with you to set a date for your property.