Real Estate Auctions & Seller Agent FAQs
Who will help the seller understand the auction process?
A Detweiler Auctions representative will be there for you. They will explain the entire auction process from start to finish and be available to answer any questions. A complete Auction Kit will be provided for you and each seller, with the auction information. There is a video available on our website that explains the process and shows some actual auctions. You can also view upcoming and past auctions on our site at daandr.com
What will happen to my listing/seller while they wait for the auction?
Because we are also a licensed brokerage, the property will continue to be marketed on the MLS. A purchase agreement can be presented before the Auction takes place, and the seller has the option to accept. You will receive recognition in all marketing materials and still be involved in the process.
Will I get paid if my listing sells at auction?
Yes, we are happy to offer commissions on all realtor referrals
I have a listing in mind that would make a great auction candidate. What should I do first?
Call Detweiler Auctions and set up an appointment or conference call between you and your seller. Our representatives know that not everyone is familiar with auctions. We go through the auction process from start to finish. You and your seller are included in the marketing process the entire time.
What happens if I have a buyer that wants to bid at the Auction?
If you're a buyer's agent, fill out the broker/realtor participation agreement found on our website. Email the completed form to our office.
If I am a Buyer's Agent, how am I compensated?
As a buyer's agent, you will be paid in accordance with your existing contract and will be credited for volume based on the auction price. If your buyer is the successful bidder, you earn a commission.
What types of properties are good auction candidates?
Properties that have been listed for a long time with no direct interest, or properties that are highly desirable, both make great auction candidates. Think about a highly desirable listing that gets multiple offers within days of listing the property. Normally, an agent would ask that each offer come back with their highest and best offer (without knowing any information about competing offers). Imagine if you asked everyone that made an offer to come to the property and open their offers up to competitive bidding? Surely, buyers would come up even more on price, making highly sought after properties excellent auction candidates.
How should I approach my seller if I think an auction may be a good fit for them?
The best way to approach your seller about auction, especially if they are not auction-savvy, is to let them know you have an idea to aggressively market their property and you’d like to set up a call so that everyone can be informed to see if this method fits their goals.
Does my buyer need to be pre-approved in order to bid at the auction?
No. Auction purchase agreements are written as cash, but how your buyer comes up with the cash is their responsibility, however, they will have 30 days to close. That means if your buyer is planning on getting financing, we would advise them to have that lined up prior to bidding, but it's not required. In the auction terms and conditions, a deposit amount is listed which is required to be presented in order to bid.
What is a back-up bidder and how many back-up bidders are allowed?
One (1) back-up bidder will be allowed to complete a full purchase agreement the day of the auction. A deposit will also be required at the same time the backup purchase agreement is written. Should the winning bidder default for any reason, the back-up purchase agreement will take effect. When the winning bidder closes on the property, the backup bidder will be refunded the deposit and the backup purchase agreement will be null and void.
