Traditional Sale versus Auction
Traditional Headwinds
Traditional Headwinds
Traditional Headwinds
With growing inventory and higher interest rates, home sales are facing huge headwinds for traditional sellers and buyers.
Sellers are withdrawing in record numbers
The average closing price is almost 10 percent lower than the original listing price
Homes are seeing more days on market
Buyers are seeking, and getting more seller-paid closing concessions and costly repairs
Auction Alternative
Traditional Headwinds
Traditional Headwinds
Auction properties disclose upfront and sell with zero buyer contingencies, repairs or contract requests
Auctions set the sales timeline, from marketing to closing
Auctions bring certainty and the largest buyer pool for the property
Competitive bidding secure the maximum price available for the property
The Real Estate Auction Process
1. We meet to determine the best auction and sales method for your property
2. A listing agreement is signed using a promulgated contract from the Texas Real Estate Commission so that the property can be listed on the Multiple Listing Service platform with the agreed listing price.
3. If already listed, that listing agreement remains in effect with your agent, who will assist with the showing and closing of the property.
The next two weeks are preparation time
1. Photographing and preparing the property marketing for MLS
2. Performing third party inspections of the structures and systems, to include full home inspection, onsite sewer (if applicable), Wood Destroying Insect (WDI) inspection, well (if applicable), sprinklers, etc.
3. Obtaining seller-paid survey, if existing performed within the last 10 years is not available or no longer an accurate depiction of the property.
4. Completing all sellers disclosures, plus obtaining other relevant disclosures and information, to include HOA, MUD, PID, water district and any other relevant oversight
5. Opening title and securing title commitment
Exposure Period
The property listed to governing MLS platforms and public sites with auction disclosure, open house dates with the agreed listing price. Buyers tour the property and submit pre-bids for seller review before the property officially goes to auction. Because the seller can still pull out of the process, bidders are offered the incentive to submit a bid early for 50% off the buyer’s premium.
Decision Time
At the end of the exposure period, the seller and auctioneer review the results
Once the seller gives the okay to proceed, the auction paperwork is signed and the property price is adjusted on MLS to reflect the highest bid already received. The auction closes on its set date and the property goes through the normal closing process, approximately 30 days.
Personal Property/Livestock Option
Completed before the home auction and can add approx. 60 days.
Experience Portfolio Auctions LLC
Our Commitment
At Portfolio Auctions LLC, we are committed to providing a fair and transparent auction process. We believe in creating a positive experience for all participants, whether they are buyers or sellers.
Auction Types
In addition to real estate, sellers have the option of auctioning personal property and livestock. Each auction is curated to meet the needs of our clients and their unique items. Personal property and livestock auctions are offered only in conjunction with the sale of real estate, using either traditional listing or auction.
Personal Property and Livestock
Sellers can expect the auction of personal property to add significant time to the real estate auction timeline as the property must be tagged, photographed and cataloged. Marketing time is allotted based on the complexity and volume of the items being auctioned. Additional time will need to be allotted for buyer pickup and the readying of the real estate for photography and marketing.
Is Your Property Suited For Auction?
The auction process works best for the following real estate
1. The property is a bespoke or truly unique home and without market comparables for appraisal.
2. Is not leveraged more than 40 percent of estimated value.
3. Vineyard, Farm and Ranch
4. Large unimproved acreage
5. Inherited residential estate, regardless of size and location
6. Builder residential inventory
