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FAQs

Q. Why should I sell my property using the auction method?

A. To accelerate the sale of your property by generating additional consumer interest and activity.  Non-contingent contracts and thirty-day settlements are required of all buyers of auctioned properties.  This means a quick transaction for you.

Q. Can I attend an auction before agreeing to selling my property through the auction method?

A. Certainly.  We encourage your attendance, and we will be please to have you experience a live example of the auction process firsthand.  Just talk with the Nitz & Associates Auctioneers about our upcoming schedule of auctions.  Remember, each and every auction is different, so you cannot necessarily assume that your auction will be exactly like the one that you attend.

Q. I am not in financial trouble, and I’m concerned about what people might think if I should do an auction.  Can you give any insight on this?

A. You are not alone in your concerns.  Many people are afraid of the old, outdated perception of auctions that some people have.  There are great differences in the marketing-and the public’s image-of a voluntary, “by choice” auction such as ours versus a distress auction.  Our auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price for your property.

Q. I am concerned about the net amount I’ll realize from the auction because I have to cover my mortgage.  What advice do you have to offer on this?

A. 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 change what the market value of your property is.  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 bid that you are willing to accept.

Q. The property is priced below the market right now.  What is this going to mean if I register it for auction?

A. Often times we find that the price is not the issue in why a property hasn’t sold.  The primary cause for it not selling is often that there has not been adequate traffic and, therefore, sufficient 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.

Q. What types of property do you sell?

A. We auction all types of real estate from single-family dwelling, land, commercial, and investment properties to high-end trophy properties and country estate.  We have been successful in all of these categories.

Q. How often do you hold auctions?

A. We conduct major auctions throughout the year.  You will need to check with our sales associates about the registration deadlines to enter a property into auction.

Q. What are the various auction methods?

A. There are three types of auctions available through Jack Nitz & Associates

1. Absolute Auction
2. Minimum Bid Auction
3. Reserve Bid Auction

Q. What is the best auction method to use?

A. The surest way to affect a sale is to auction “absolute.” Though an absolute auction you will generate the ultimate competition which will lead to the strongest dollar offer for your property.  Another method is the “minimum bid” auction that allows you, the seller, to get a floor price.  The third method is the “reserve bid” auction which enables you to approve or reject any and all offers.

Q. Where will the auction be held?

A. We hold all auctions on site.  By being on site, bidders are constantly reminded of the positives associated with that particular property, which in turn might encourage a higher bid.

Q. If I put my property up for auction, do I have the right to refuse the bid?

A. On a “minimum bid” auction, you have the right to refuse offers below the minimum bid level we set in advance.  On a “reserve” auction, you have the right to refuse any bid.  When you elect to use the “absolute” method of auction, the property will be sold to the highest bidder regardless of price.  In the option of canceling the auction sale if it is deemed to be a situation that is not favorable to the seller.

Q. Will we still have to consider contingent contracts?

A. Everything that we sell at auction is sold “as is,” “non-contingent,” with a thirty-day projected settlement date and the buyer paying all allowable closing costs associated with the sale.  There are times on a pre- or post-auction offer that a contract contingent upon a home inspection or financing will be presented to you for consideration.

Q. Does “as is” mean that I don’t need to disclose any know defects?

A. Though we are selling “as is,” we must abide by all applicable state and federal laws.  For instance, we must allow for a contract to be contingent upon a review of condominium documents and/ or homeowners association documents just as we would in any real estate sales transaction involving condominium.  The sales associate will offer full disclosure to all interested parties in accordance with the law as always.  We will allow for a ten-day, pre-auction inspection for potential buyers to inspect for lead paint.

Q. Do you inspect the property to determine the best method of auction?

A. No. We don’t need to preview the property in order to propose an auction program.  We trust the sales associate to advise our auction team regarding market values in your region.  We will evaluate the sales associate’s input, we will look at how many competing properties there are in your area, and we will look at auction history.

Q. How is my property marketed by the auction department and who pays for this service?

A. Jack Nitz & Associates’ comprehensive auction marketing program includes some or all of the following:

• Brochures
• Direct Mail
• Internet Home Page Exposure
• Classified Advertising
• Major and Regional Newspaper Advertising
• Business and Investor Newspaper Advertising
• Company-Wide Auction Announcements
• Four Weeks of Auction Signs
• Additional Signs Provided to the Listing Sales Associate
• Listing Sales Associate Training
• Marketing Department
• Administrative Department
• Broker Flyer Distribution
• Auction Day Staff

If you opt to use the absolute auction method, there is no charge for these marketing services.
If you select one of the other auction methods, there is an upfront fee for these services.