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April 23, 2021

Pay No Seller’s Commission in a Seller’s Market?

by derekespeer

I have added another tool to my real estate tool belt to assist clients maximize their Return on Investment for residential or commercial property.  My Auctioneer’s License is valid anywhere in the State of Missouri.

WHY?

My initial thought was this:  if a buyer is willing to pay over list price, why not take the guess work out and let the market decide who will pay what for a property.  The online bidding system handles multiple offer scenarios along with supply and demand, notifying buyers when they are outbid, so they either up their bid or back out.  In addition, in this case, the buyer pays a premium for the auction and their agent, the seller does not pay the traditional selling commission percentage.

Our focus remains on the traditional method; however, if there is a way for me to make you more money via Auction, we’ll discuss it.

Further, I have partnered with Auction Mobility to provide an online bidding dashboard for ease of use and to help drive the market value of property.  No, I will not be standing on the steps doing an Auction, this is 2021, not 1991, it will all be done digitally online.

If you are a buyer/investor that is interested in auction properties, please contact me or visit the site to register: https://auctions.aspiresellskc.com/register. You may also find us in the Apple App Store.

You will receive an auto email anytime a residential, commercial, or land property has listed for auction.

Here is a short synopsis of Auction vs Traditional listing method:

Auction Method

  • Marketing Plan Tailored for Your Property (same as traditional listing method). We still put forth the same effort and plan.
  • Entered in MLS system for maximum exposure
  • Process Allows Price to Exceed Seller’s Expectations Based on Demand (buyer’s bid online and notified when they are out bid)
  • Less Costs Paid by Seller (especially in a Sellers’ Market, the buyer pays a premium, seller does not pay traditional %)
  • Sold “As-Is, Where-Is”
  • Pre-inspected for Buyer Assurance if seller elects
  • Pre-qualified Bidders / Buyers
  • Predetermined Sale Date; Meets Seller’s Timeline
  • No Contingencies for inspection, appraisal, sale of another property.  Buyer puts down a non-refundable deposit.
  • If Property is Not Sold at Auction, Negotiations May Continue with Interested Buyers or Convert to Traditional Listing
  • Capacity to auction other personal property items of value

Traditional Listing

  • Marketing Plan Tailored for Your Property (same as auction listing method). We still put forth the same effort and plan.
  • Entered in to MLS and other platforms for maximum exposure
  • Occasionally Sellers Want Price to Absorb Commission
  • Broker Typically Absorbs Marketing Fees
  • Post-Sale Contingencies, Inspection Period, Appraisals allow buyers to potentially move-on and cancel
  • Inspection Items Typically Need to Be Addressed/Resolved. In a sellers market, buyer may offer over list price, but then expect inspection related items to be addressed.
  • Possible Financing Contingencies and Marketing Delays
  • Sale Date Unknown. Holding Expenses and Marketing Changes Become a Factor

A real estate auction may not work for every property, which is why we came up with a formula to determine which method, auction or traditional, will get you the most money in your desired timeframe. 

Contact Derek Espeer to discuss further:  derek@aspiregroupkc.com, 816.588.5745

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