Paul A. Lynn & Associates, LLC

Real Estate and Personal Property Strategies - Solutions   

 

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PAL Auction Advantages

Auction Services Overview

 

Advantages of THE PAUL A. LYNN & ASSOCIATES, LLC

REAL ESTATE AUCTION PROGRAMS

 

Accelerated Process, Minimized Holding Cost

Our marketing programs usually last between five to eight weeks, allowing ample time for advertisement to reach potential buyers and pre-auction on-site inspections to be conducted. Once the property is under contact, closings typically occur within 30-45 days. The cost of holding a property can sometimes cost an owner over 20% of the value of an asset per year. Mortgage principal and interest payments, taxes, depreciation, insurance, maintenance, security, management fees, and promotional expenses can weigh down a property owner. In uncertain economic conditions, owners will review these expenses with much closer scrutiny.

Force Prospects to React

The Potential buyers that may have been lingering in the marketplace are forced to react, as a finality of the offering is created when time, date, place, and terms of sale are established.  In addition to speeding up a prospects buying decision, our program will often break down geographical or property type barriers previously held by purchasers. Buyers who may have originally limited their property search to certain areas or property type will often find that they could not resist the opportunity presented in our auction offerings.

Eliminate Competition 

Our program essentially freezes the marketplace at the expense of other comparable properties, setting your offering apart from once competing product currently offered on a traditional negotiated basis.  Prospects will delay their purchases at any competing property until they have had the opportunity at a “possible” wholesale opportunity at your auction.  This “illusion of a bargain” is an essential motivating factor to insure maximum market focus to your offering.

High Profile Marketing Exposure

Condensed marketing periods allow for maximum exposure in online and print publications, as well as television, radio, and other various media outlets. Paul A. Lynn & Associates, LLC has maintained long-lasting quality relationships with international, national, regional, and local advertisers such as Wall St. Journal, local newspapers, and local Business Journals.  As marketing exposure has expanded to new technologies we use various national and local CIEs like LoopNet and CoStar; email blast services like Property Blast, REDNews, BigBoy Blasts and others; Banner ads on real estate newsletters like Globe St., NREI, Bisnow, ICSC, New Condos Online and any other appropriates services, all this to ensure appropriate exposure of the property to targeted markets and buyers at minimal cost.  Downloadable color brochures and in depth due diligence packages insure each property is presented in its most positive light and buyers are well informed on property specifics before they commit to bidding. Our detailed international auction attendees, insures that knowledgeable and qualified auction savvy prospects are aware of your offering.

Increased Public Relations

Our professionals are well skilled in preparing a press release to be distributed to various media outlets throughout your targeted market area. Our auctions are commonly viewed by the press as Events, rather than standard real estate offerings. Many times, media cannot resist the story of the “possible” wholesale opportunity our auction program presents. With the puble relations program we target print and broadcast outlets to make them aware of the auction and try to get a story. These features are of extreme benefit to our seller clients, as they (1) offer legitimacy to the auction when presented to the public as news as opposed to paid advertisement, and (2) provided increased exposure at minimal cost.

Control of Terms of Sale

Frequently, negotiated sales are written on a contingent basis that gives the purchaser a “free look” for a considerable period of time, after the time has burn off many times the buyer will come back and try to re-negotiate the terms.  In the event the transaction does not proceed, the entire marketing program must often be recommenced from the beginning with considerable loss of momentum.  Thus, a sale that the seller anticipates will take 6 to 9 months becomes 18 to 24 months. In our accelerated auction programs, the terms of sale are predetermined, providing the seller with complete control of the transaction.  Eliminating negotiation from the sale reduces much of the stress and anxiety so commonly associated with traditional sales. Many sellers elect for conditions as follows:

A. “As-is, Where-is” Condition:  Eliminating repair and other contingencies can save sellers thousands of dollars of added expense. Prospects are provided detailed due diligence material prior to Auction day, and given to opportunity to inspect each property on numerous pre-determined on-site inspections as designated by each owner. Buyers must make bidding decisions based on the current “As-is” condition of the property, there is no opportunity for further due diligence after the auction.

B.  Predetermined Date of Sale: This allows each property owner the luxury of strategizing for their future, without the uncertainty of when their property will sell. Many times, the marketplace will begin to devalue property that is available for purchase for more than 180 days in a conventional negotiated offering.  For public companies with the date of the auction and closing scheduled by contract, the sale can be timed to meet various quarter-end or year-end timeframes.

C.  No Financing Contingencies: While we provide prospects with recommended sources of financing and in some cases offer a Seller finance option, eliminating this contingency increases probability for the most qualified buyer participation and likelihood of successful sale.

D.  Increased Earnest Money Requirements:  Many of our sellers choose to require a 3% - 5% Initial Earnest Money Deposit in certified funds on auction day in order for parties to participate in the bidding.  This Initial Earnest Money Deposit is often required to be increased to a total of 8% - 10% of the Total Purchase Price 3–5 days after the auction. This insures that bidders are capitalized, serious, and qualified while simultaneously deterring any successful bidder from contract default in fear of loss of their sizable and nonrefundable deposit.

Minimal Seller Cost for Services

The implementation of a Buyer’s Premium, a predetermined percentage of the High Bid Price paid by the buyer to the seller at closing, allows the seller to minimize the cost of sale by effectively deferring much of the brokerage and marketing costs to the buyer. Auction buyers worldwide have become quite accustomed to a Buyer’s Premium at auction, and all premiums are well advertised in the Auction Terms of Sale prior to the sale. We have found some buyers will intend to discount bidding accordingly prior to auction, however once the excitement of the live auction begins and the competitive environment is created, the additional premium is not reflective in their bidding.

Predetermined Due Diligence Period

Weeks prior to the auction, a Bidders Packet is compiled and made available to prospect prior to auction.  These can be obtained in print or electronic formats.  Obtaining this information is a requirement for all bidders attending and bidding in our auction sales; this releases substantial liability from the seller, ensuring that each buyer was provided the material facts for the property prior to their decision to bid on auction day. Confident bidders lead to confident bidding, which leads to higher prices achieved.  Each improved property has predetermined On-site Inspection Dates, managed by our experienced staff, and land sites are open for view at any time, this provides the opportunity for each prospect to inspect property prior to auction.  By allotting a specific times and dates in which prospects can view the property, you can insure that (a) the right people are speaking with your prospects, (b) unannounced showings which may disrupt current business or tenants are eliminated, and (c) prospects view the property simultaneously adding to the sense of urgency and element of competition that our unique program creates.

Remote Bidding

Should a scheduling conflict not allow a qualified bidder to attend a live auction event, or the property has a universal appeal to buyers in distant geographies, our auction programs allows for on-line Internet and/or telephone bidding, where a bidder can maintain direct connection with the auction and bid on the property anywhere in the world. Certain requirements must be met prior to the auction, including wire transfer of the required Earnest Money Deposit, pre-signed disclosures, and Purchase Contracts.

On-Line Bidding

In the last few years, on-line only auctions have become prevalent in the sale of Real Estate.  We have found that buyers are comfortable with the on-line bidding process and can be as effective in achieving maximum price as with a live auction event.  One of the advantages is that distant bidders from throughout the country or around the world can participate in the auction without need to be physically present expanding the buyer universe.  On-line bidding can take place over a number of hours or number of days, depending on the property being offered.  Buyer are required and sign auction related documents and make required deposits before being given a Bidding Number and allowed to participate and bid in the on-line auction.  While there is stated deadline when the bidding will end, as opposed to some personal property auction sites, the deadline it is a “soft” deadline.  If active bidding is continuing and there is incremental increases in the bids, the deadline will be extended for additional 3-5 minute timeframes, until there are no further bidding increases.

Direct Contact with Prospects

Inquiries achieved from our high profile marketing efforts are received by an experienced member of our Accelerated Marketing Team.  Having our professionals as the “first contact” provides Paul A. Lynn & Associates, LLC with the ability to (a) speak intelligently about the offering, (b) qualify each prospect individually,  (c) provide direct feedback to our sellers, and (d) “up sale” the offering and unique opportunity that each Auction presents.

Competitive Bidding Environment

The true potential for any real property asset can only be realized through competitive bidding environment, providing equal opportunity for all qualified prospects to aggressively compete against each other. Bidders buying decisions are expedited and often augmented when receiving instant justification of their auction offer from corresponding offers placed by competitors simultaneously bidding at our auction events. The possibilities of costly pricing mistakes by the seller are eliminated as true market value will always be determined in a professionally marketed and properly structured live auction format where all qualified prospects can participate.






   

Paul A. Lynn & Associates, LLC





Real Estate and Personal Property

Disposition Strategies - Solutions

 

Paul A. Lynn, CCIM - Principal

406 Coachman – Houston, TX 77024-6401
 
Email: paullynnccim@gmail.com
Auction Line: 832.598.8BID (8243)
Fax: 832.201.9886
 
© 2011-2020 Paul A. Lynn & Associates, LLC