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Frequently Asked Questions

Real Estate Auction Questions

What is Simply Accelerated Marketing?

It is a method to buy and sell real estate in an intense marketing campaign through open transparent and competitive bidding utilizing technology.

What are the different types of auctions?

Reserve and Absolute

What is a Reserve Auction?

This auction means that the property will not convey if we do not meet the goal of the sale that is set prior to auction. Open negations can occur prior to and after the sale to meet the reserve number or adjust it accordingly. The seller has the right to accept or reject the highest bid.

What is an Absolute Auction?

The property is sold regardless of price. Advertising an Absolute Auction from a seller’s perspective can be desirable as it will normally attract more bidders due to the possibility of a deal for the buyer.

How Does Red Suit Realty & Auction Get Paid for an Auction?

The nice thing about a Real Estate Auction is the buyer pay’s the auctioneer fee in the form of a Buyer’s Premium. In personal property auctions the auctioneer can be paid via a Buyer’s Premium, Commission, Flat Fee, Labor, or any combination of the above methods.

Are there Upfront Costs for an Auction?

There are upfront costs depending on the type of auction weather Real or Personal Property. The fees for real estate can be $500.00 to 1.50 % of the market value. The auction company and the seller determine what is right for their budgets. The fee is designed to gain maximum exposure for the property. It consists of signage, website advertising, direct mail, print advertising, preparing property for the sale and so much more.

What if The Property Does Not Sell?

The property will be offered for 180 days after the auction in a Buy it Now Format. The marketing will not cease either. The pricing may be different as the auction company will be paid on a commission basis versus utilizing a Buyer’s Premium. It is a hybrid of an auction and a traditional listing. The listing price will be 4%!

Can I Cancel an Auction?

Once the contract is signed you will pay a marketing fee that is nonrefundable. Advertising will be in place prior to the auction date as well. There maybe some fees that would be due and payable to Red Suit Realty & Auction as each auction is a case-by-case basis. In the event of a personal property auction the seller will be responsible for any labor that was utilized preparing the items for sale. The best thing is to insure you are prepared when you sign the contract as you will also no longer be represented in such a large sale such as a home.

What if a Buyer or Investor reaches out to me directly about my Real Estate Auction?

Under licensing laws in North Carolina, you are represented by Red Suit Realty & Auction. We have a fiduciary responsibility to insure you receive the most from the sale of your assets. Refer all questions to Red Suit Realty & Auction as there can be bad actors that do not have your best interest at heart. This can leave the seller vulnerable.

How is the Opening Bid Determined?

We start the opening Bid below the reserve price to create a bid among buyers. In terms of the MLS, we can only offer an Opening Bid Price that the seller would accept, the reserve price or the tax value.

What if a Real Estate Agent represents a Buyer at an Auction?

The real estate agent or broker must fill out a form signed by both the bidder and the broker and present the form 24 hours prior to auction. They must attend previews, the auction and settlement and would be paid from the proceeds of the Buyer’s Premium.

What about Inspections or contingencies at an auction?

The Buyer has ample opportunity to have any inspections done prior to auction and they would be responsible for any fees incurred. The property is sold As-Is-Where-Is it is not based on any inspections or contingencies. They agree to the terms when they bid on the property. The only thing the sale is contingent on is the Seller providing a free and clear title. There are no contingencies based on financing, appraisal, condition, inspections, pest, sale or lease of other property study periods or insurable encumbrances like deed restrictions, easements, or encroachments.

What type of Deposit will a Buyer Pay?

The buyer will be required to pay a non-refundable deposit at the time of the auction utilizing certified funds. The deposit is up to 10% decided by the Seller and Red Suit Realty & Auction.

What if the Buyer Defaults?

The Seller is entitled to keep the deposit for damages. If the Seller keeps the deposit 50% will be paid to Red Suit Realty & Auction plus any other unpaid fees. If the seller elects to give the deposit back to the Buyer and seek damages through a claim against the buyer Red Suit Realty & Auction will retain 50% of the deposit and 10% of any recovery the Seller receives.

When will the property Settle?

Most settlements are within 30 to 45 days. The time frame can vary and will be agreed upon at the time of signing of the purchase contracts.

Am I required to Disclose Latent or Material Defects?

Yes Prior to Listing the Property regardless of how it is sold you must provide a Property Disclosure, Mineral and Oil and Gas Rights Disclosure and Lead Based Paint Addendum.

Can I Accept a Pre-Auction Offer?

Yes Absolutely! If the Seller wants to accept an Offer from the Buyer at an agreed amount the auction can be canceled and will be sold under the terms of the auction. Sometimes Buyer’s preferring not to get caught up in a bidding war and present the highest and best offer. We fully stand behind the seller and will represent you in our best interest.

Real Estate Selling + Buying

What is Real Property versus Personal Property?

Real property is real estate which is the land, house and items connected to the house or land. Personal property are items that are owned not affixed to real property. Cars, clothes, stereos, antiques, fine art etc.

Why Do You Offer Flat Fee and Discounted Brokerage Services in Addition to Full Service?

It is fair! Consumers are very smart and have access to many of the tools that real estate agents utilize. With the advent of the internet real estate searches can be done by consumers. Instead of charging a full commission we prefer to offer flexibility to cater a menu to the services you desire. According to the National Association of Realtors, buyers find their home using the internet 51% of the time, real estate agents 30% of the time, signs, or open houses 7% of the time.

How Much Can I Save using Red Suit Realty & Auction?

It depends what level of service you purchase. We offer flat fee models of the listing side starting at $149.00 to $895.00! Consider selling a home for $100,000 you can save up to $5,851! If you choose not to accept the risk of navigating a flat fee listing, you can utilize a discounted service for 4% of the selling price and you will be fully represented! Or you can sell it for 0% utilizing Simply Accelerated Marketing and be Fully Represented!

What About Multiple Offers?

This is a great question Multiple Offers happens when you receive more than one offer for purchase. The downside is you can only negotiate one offer at a time? Red Suit Realty & Auction is one of the few companies to be able to negotiate multiple offers at one time with no contingencies! And your cost is 0% commission! Do not leave money on the table as you would with a traditional real estate brokerage.

How Do You Market My Home?

All listings are placed on the Multiple Listing Service (MLS) and are syndicated to all the major search engines and Real Estate Websites. Then you choose your package of where you want to spend your advertising dollars. There is no one size fits all unless you want to choose Simply Accelerated Marketing Program Here our team is dedicated to exposing your home to the largest number of buyers as possible on your terms for 0% commission!

What is a Rebate Program?

What is a Rebate Program? Red Suit Realty & Auction is proud to offer a Rebate at closing to $3,395! We represent the buyer in the transaction and work for a retainer fee of $395. When the sale contract is accepted you can receive up to $3,395 at closing and possibly a free warranty. Or you can choose no cash out of pocket and receive a Free Home Warranty and up to $500 at closing!

What Happens if I Decide to List and then Change my Mind?

You will pay for your package or retainer upfront. So Red Suit Realty & Auction earns that Fee at the time of Listing. However, you can change at any time or cancel at any time. We are very flexible and partner with our sellers and buyers. Come and go additional fees may apply.

What is the Multiple Listing Service (MLS)?

The MLS is a computer database that allows real estate brokers to display real property listing information to cooperating brokers and the public so they can view and evaluate properties.

What is Flat Fee Listing?

This is where the seller pays a flat fee to have their home marketed on the MLS. The seller is responsible to adhere to the MLS stipulations and provide a co-op fee to buyer agents. Any emails or phone calls about the property are directed to the seller and the seller shows the property.

What is a Buyer's Agent?

A buyer's agent is a real estate professional who guides a buyer through the process of purchasing a home. Although there are some real estate agents who specialize in working with buyers, most agents work as either a buyer's agent or listing agent, depending on the specific transaction.

Red Suit Realty & Auction represents Buyer’s and Seller’s alike.

Real estate commissions are paid like this:

  • The seller pays the listing brokerage.
  • The listing brokerage pays the listing agent.
  • The listing brokerage pays the buyer's brokerage.
  • The buyer's brokerage pays the buyer's agent.
  • The seller effectively pays your buyer's agent to negotiate on your behalf.
  • With low overhead and technology Red Suit Realty and Auction is happy to introduce the following Buyer Agency Programs.

Auction Buy or Sale Questions

Can anyone go to or buy at an Auction?

Yes, auctions are public events and anyone and everyone is allowed. However, participants must be legal to enter a contract to purchase.

What Types of Items Can be Sold at Auction?

Quite simply anything that can be sold can be sold at Auction! Cars, real estate, household goods, antiques, vintage items, firearms, fine art, business fixtures, furniture, pots and pans, jewelry, fine metals, coins, dolls, and all types of various collections!

Are Auctioneers Licensed or Bonded?

In North Carolina, all Auctioneers are Licensed and if they sell real estate, they are Licensed or will be working with a Licensed Real Estate Broker. In NC, all Licensed Auctioneers pay into a Fund that can help Restore a Seller. Red Suit Realty & Auction is a licensed Real Estate Broker, Auctioneer and Notary Public. In addition, they also have PACC Certified Appraisers on Staff.

What is a Buyer’s Premium?

It is a percentage of the High Bid that is provide to the High Bid to establish the Final Sales price.

What are the different types of auctions?

Reserve and Absolute

What is a Reserve Auction?

This auction means that the property will not convey if we do not meet the goal of the sale that is set prior to auction. Open negations can occur prior to and after the sale to meet the reserve number or adjust it accordingly. The seller has the right to accept or reject the highest bid.

What is an Absolute Auction?

The property is sold regardless of price. Advertising an Absolute Auction from a seller’s perspective can be desirable as it will normally attract more bidders due to the possibility of a deal for the buyer.

How Does Red Suit Realty & Auction Get Paid for an Auction?

The nice thing about a Real Estate Auction is the buyer pay’s the auctioneer fee in the form of a Buyer’s Premium. In personal property auctions the auctioneer can be paid via a Buyer’s Premium, Commission, Flat Fee, Labor, or any combination of the above methods.

Are there Upfront Costs for an Auction?

There are upfront costs depending on the type of auction whether Real or Personal Property. The fees for real estate can be $500.00 to 1.50 % of the market value. The auction company and the seller determine what is right for their budgets. The fee is designed to gain maximum exposure for the property. It consists of signage, website advertising, direct mail, print advertising, preparing property for the sale and so much more.

Am I Required to Register if I come to an Auction?

You are only required to register if you intend to bid at an auction.

What Must I do to Bid at an Auction?

You will be required to bring ID to present and agree to be bound by the terms of the auction? If online, you will be registered with a credit card and agree to be bound by the terms of the auction.

Can I Preview the Property to be Sold?

Yes, you can attend a public preview or schedule an appointment. Remember everything is Sold As-Is-Where-Is. Red Suit Realty & Auction try to describe the items to the best of our ability however an Auction is Caveat Emptor. Buyer Beware!

Can I Understand an Auctioneer?

Yes, and Auctioneer chant is easily understood. They are clear and provide filler words between numbers to maintain rhythm and pace.

How Do I Remove my Items from an Auction?

Upon becoming the high bidder you are required to be responsible for that item. If you need assistance with shipping or delivery or moving an item, please request help which can be done for additional fees.

What is a Timed Online Auction?

This is where the entire bidding process takes place online. The property has a defined closing date and time. Bidding can remain open for a period after depending on the asset and the time can be extended in the last few minutes as the lot is closing.

What is a Virtual Auction?

It is a live auction that is online with a set start and end date and time. There are only online bidders and no bidders onsite.

What is a Simulcast Auction?

This is a real time live auction with online prebidders, onsite live bidders and online live bidders. It happens real time and utilizes clerks for online bidders and live bidders.

Is Phone Bidding Allowed or Absentee Bidding?

Absentee Bidding is when a bidder places a bid that the auctioneer can bid up to. It is not used as a starting bid. A phone bidder can be someone talking to a staff member placing verbal bids on the phone. These can be used at the discretion of the auctioneer.