Frequently Asked Questions
What is an Express Auction?
As real estate innovators for over 30 years, The Express Auction Method (TEAM) is a method of buying and selling real estate. It is an intense and accelerated real estate marketing process that involves the public sale of property through open, competitive bidding.
When will my Express Auction be scheduled?
Express Auctions are scheduled anywhere from 30-45 days from the date you hire us. We take into account holidays, weekends, and major local and national events when choosing the date. We always choose a date that maximizes your chances of getting the most bidders to bid on your property. We welcome our clients’ input on this as well.
What are the different types of Express Auctions Offered?
No-reserve Express Auction, also known as an absolute Express Auction, is an Express Auction in which the item for sale will be sold regardless of price. From the seller's perspective, advertising an Express Auction as having no reserve price can be desirable because it potentially attracts a greater number of bidders due to the possibility of a bargain. If more bidders attend the Express Auction, a higher price might ultimately be achieved because of heightened competition from bidders. This contrasts with a reserve Express Auction, where the item for sale may not be sold if the final bid is not high enough to satisfy the seller. In practice, an Express Auction advertised as "absolute" or "no-reserve" may nonetheless still not sell to the highest bidder on the day, for example, if the seller withdraws the item from the Express Auction or extends the Express Auction period indefinitely, although these practices may be restricted by law in some jurisdictions or under the terms of sale available from the Express Auctioneer.
Reserve Express Auction is an Express Auction where the item for sale may not be sold if the final bid is not high enough to satisfy the seller; that is, the seller reserves the right to accept or reject the highest bid. In these cases a set 'reserve' price known to the Express Auctioneer, but not necessarily to the bidders, may have been set, below which the item may not be sold. If the seller announces to the bidders the reserve price, it is a public reserve price auction In contrast, if the seller does not announce the reserve price before the sale but only after the sale, it is a secret reserve price Express Auction. The reserve price may be fixed or discretionary. In the latter case, the decision to accept a bid is deferred to the Express Auctioneer, who may accept a bid that is marginally below it. A reserve Express Auction is safer for the seller than a no-reserve Express Auction as they are not required to accept a low bid, but this could result in a lower final price if less interest is generated in the sale.
How does the Express Auctioneer get paid?
The Express Auctioneer is paid through a negotiated Buyer’s Premium, which is a percentage additional charge on the hammer price (winning bid at auction) that must be paid by the winner. Because this premium is added to the purchase price, it is then paid to the Express Auctioneer, from the sales proceeds, at time of closing.
What are my upfront costs?
We charge a marketing fee which we recommend for selling your property. It is specifically designed to bring maximum exposure for, your property. We present the marketing plan and budget for your approval prior to implementing.
What happens if my property does not sell at Express Auction?
If the property does not sell at Express Auction, several things can be done. Depending on the circumstances, we may offer to conduct the Express Auction again within 30 days for a nominal fee. Once the live call Express Auction attempt(s) have been exhausted, the property will be offered out to the public in a “BUY-IT-NOW” scenario for up to 180 days. The property will also be offered out on the MLS system and syndicated to thousands of websites to maximize exposure to the buying public as well as other real estate agents, brokers, and professionals. It is a hybrid of the Express Auction process and the general brokerage process. The price offered to the public would either be equal to the reserve price or such other price as mutually agreed to by Seller and Express Auctioneer. The marketing of your property does not stop after the Express Auction date unless there is a successful bidder and a signed purchase agreement.
Are there “rain dates” for inclement weather or other major events?
We will reschedule the Express Auction in the event of inclement weather, natural disaster, or major global, national, state, or local events that have or threaten to have an impact on the chances of gaining a successful winning bid on the day of the Express Auction. The new date will depend on the nature, severity, and length of the event.
What happens if I cancel the Express Auction?
By the time you sign the Express Auction agreement, you will have been 100% sure that an auction is the way to go. We charge a cancellation fee in the event a client wishes to cancel the Express Auction. Our company stands behind you and your property with advertising dollars, employees, and other costs of doing business. Cancellation fees are in place to recoup these costs. The cancellation fee is also in place to discourage Sellers from entering into an agreement to Express Auction the property with the intent to cancel and sell the property to a buyer in order for either party to avoid the fees by circumventing the Express Auctioneer. There have been instances where investor buyers attempt to convince a seller to breach their agreement with the promises of a more lucrative transaction, only to leave the seller unrepresented and vulnerable. Only sign the Express Auction Agreement if you are 100% decided on having the Express Auctioneer represent you in the sale of the property.
What happens if a buyer approaches me directly?
Do not talk to anyone who calls you who is not from our organization. If anyone outside of our organization contacts you about the property, refer them to us and do not answer any questions or engage in conversation. As with any real estate offering, there may be bad actors who are tempted to reach out to the seller directly. These people do not have the Seller’s best interest in mind and may engage in a subtle conversation aimed at extracting valuable information from the seller in order to attempt to get a better deal on the property.
How is the opening bid determined?
We will open the Express Auction at a per-determined number, which is below the reserve price. This is done so as to create more buzz and competitive bidding, as well as to mask the true reserve from the general public.
What happens if a Real Estate Broker represents the winning bidder?
Several things must happen in order for a real estate broker or agent to earn a commission. First, the Broker or Agent must register their buyer in writing, on company form. The broker and Buyer must sign that form. Then, the Broker and Buyer must both attend the Express Auction and follow all Express Auction instructions. From there, that buyer must actually be the winning bidder. The buyer must then sign the Purchase Agreement, and the Broker or Agent must attend settlement. Should their client when the bid, then at settlement the broker will be paid from the buyers premium.
What are my closing costs?
An Express Auction allows you to keep your closing costs to a bare minimum. The buyer is responsible for paying the buyer’s premium added to the purchase price and deducted from the proceeds. The buyer must also pay 100% of all state and local transfer and recordation taxes and stamps. They are also responsible for their own title costs, legal, and accounting fees. If you have any judgments, liens, or monetary encumbrances against the property, they will be deducted from your proceeds and paid at time of closing so that the buyer receives free and clear title. In the event that a buyer is registered by and represented by a licensed real estate broker who has followed all of the requirements to be paid, a 2 % brokers fee will be paid by the Express Auctioneers.
Can a buyer get inspections?
All buyers will be given ample time prior to the Express Auction to visually inspect the property. Buyers may not disturb the property in any way other than to walk through and perform a visual inspection. The purchase agreement will not be contingent upon any inspections. The property is sold in AS-IS, WHERE-IS condition. They can at their expense have an inspection done.
What contingencies are there?
The purchase agreement will be contingent upon the seller being able to provide free and clear title to the buyer, and will be contingent upon the Seller or Seller’s Personal Representative being authorized to sell the property. There will be no contingencies pertaining to financing, appraisal, condition, inspections, pests, the sale or lease of other real estate, study periods, or insurable encumbrances like deed restrictions, easements, encroachments, leases, and licenses. The property will be sold in AS-IS, WHERE-IS condition and subject to all leases.
What kind of a deposit will the buyer put down?
The buyer will be required to put down a per-determined deposit at the time of the Express Auction. The deposit must be made using certified funds. Within a specific period of time, the buyer must bring the deposit up to 10% of the winning high bid amount. This is a substantial amount and shows the buyer’s seriousness.
What happens if the Buyer defaults?
Defaults are rare given the substantial amount of the deposit. In the event the Buyer does default, and the seller is entitled to keep the deposit, then there are two immediately available options: If Owner elects to retain the deposit set forth in the Buyer’s Contract (the “Deposit”) as its sole damages, then Auctioneer shall be entitled half of the Deposit, plus all costs. If Owner does not elect to retain the Deposit as its sole damages and instead elects to assert a claim against the buyer, then Auctioneer shall be entitled to retain half of the Deposit, and 10% of any recovery Owner obtains from the buyer up to Auctioneer Fee. In the event buyer defaults upon the Buyer’s Contract, Owner shall elect its remedy against buyer within sixty days of the auction date, and Owner shall notify Auctioneer in writing.
When will the property settle?
Most settlements take place on or before 30 days from the signing of the purchase agreement by the Buyer and Seller. This time frame can vary based on the complexity of the property, but will be agreed upon in writing within the Purchase Agreement. Should buyer ask for an extension the buyer will pay interest to you for that time period.
Do I have to disclose Material or Latent defects?
YES. Even though the buyer may be purchasing the property in AS-IS, WHERE-IS condition, subject to all of its flaws, you must still disclose any knowledge you may have about material or latent defects pertaining to the real property. A material defect is a specific issue with a system or component of a residential property that may have a significant, adverse impact on the value of the property, or that poses an unreasonable risk to people. A latent defect is a KNOWN fault in the property that could not have been discovered by a reasonably thorough inspection before the sale. If you know of material or latent defects in the property, there may be State and Local laws that require you to disclose them.
Can I Accept a Pre-Auction Bid?
Absolutely. If a buyer wishes to make an offer prior to the Express Auction date, and the Seller wishes to enter into a Purchase Agreement at that price, we will cancel the Express Auction after the agreement is signed by all parties, and move the contract forward to closing. Sometimes a buyer may want pre-empt the Express Auction with their highest and best offer in an attempt to expedite the acquisition. If the offer is good enough for the seller, the seller may want to accept the offer, the contract will still be sold under auction terms and conditions.. We fully support the Seller, sometimes buyers don't want to get caught up in a bidding frenzy or their schedule will not allow them to attend the auction.
Are the terms Auction, Auctioneer, Express Auction and Express Auctioneer interchangeable?
Auction and auctioneer are variation on legal definition for licensed auctioneers and the auction event held by an auctioneer in your state or locale. Express Auction and Express Auctioneer and variations on the same are branded terms utilized to denote our company’s rapid sale and closing for your real estate and other assets. On this website and our marketing literature, the terms are interchangeable for marketing purposes. On all of our contracts and terms and conditions, you will only see the term, “auction” and “auctioneer”. All Express Auctions are performed by licensed auctioneers in Maryland, Virginia and other states and locales. All fees and Buyer’s Premiums are fully negotiable.
Good luck and good bidding! Happy seller - Happy buyer!
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6422 Frankford Ave, Baltimore, Maryland 21206, United States
Maryland Office: 410-243-9999
Larry's Cell phone 410-365-2759
Virginia Office: 804-695-1222
Linda's Cell Phone 804-832-8471
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Monday - Friday: 9am - 5pm
Click HERE to view terms and conditions
Click HERE for forms and contracts.
Broker Registration for all Express Auctions HERE.