By adopting an auction program YOU the Broker/Agent have the advantage of standing out from your competition.
Auctions are a valuable tool in any market. Become the auction expert and increase your sales in revenue.
We encourage you to attend one of our CE Classes or on-line webinars to learn more about the benefits of auction and the process.
OPTION A: Brokers/Agents can refer clients
A real estate agent or broker can refer a seller to an auction company and receive a referral fee. The referring agent or broker may also be instrumental in helping the seller understand the many benefits of the auction process and help them in making an informed decision.
Responsibilities of Referring Agent/Broker:
Help seller analyze his needs, the property, and market to determine if it is good auction situation.
Refer seller to professional real estate Auction Company.
If a listing agreement exists- typically you will cancel the listing and the auction company will take an “auction-listing contract” and sign an agreement with you the broker/agent to collect a referral fee.
Send notice to MLS stating that the property will be sold at auction and direct them to the auction company.
Collect referral fee from auction company when the property closes- thought a title company
OPTION B: Become a Co-Broker
Most auction companies do not work on a co-broker basis however Prestige Real Estate Auction encourages co-broker situations. Our goal is to create a working relationship with you the broker/agent and help you become an auction expert- creating a niche within your business.
In a co-broker situation the auction company handles the majority of the auction process allowing you to focus on your real estate business and the auction company to focus on the details of the auction.
The co-broker is involved in the process and can benefit by being included in the marketing- getting your name out in front of public. Also, by working as a co-broker you have the opportunity to work with the unsuccessful bidders and the buyers that may be interested in another property type or location- helping you create a strong buyer’s list.
Responsibilities of Co-Broker/Agent
Before the Auction
Provide the lead (in most cases).
If a negotiated sale listing agreement exists- typically you will cancel the listing and the auction company will take an “auction listing contract” including you as the co-broker
Send notice to MLS stating that the property will be sold at public auction and direct them to the auction company.
Provide a fact sheet on the property.
Perform market analysis.
Complete due diligence.
Order and obtain sign, photographs, and keys.
Hold open houses and be there for any scheduled inspections.
Assist bidders with pre-qualification process.
Provide feedback (progress reports) to the seller.
During the Auction
Be present for the auction- assist in greeting people
Assist in registration process
Assist auctioneer in bid process as needed.
After the Auction
Help buyers with post-auction inspections, insurance, financing, etc.
Assist in pre-closing events.
Collect commission check when the property closes.
OPTION C: Be a Cooperative Buyer-Broker
A cooperating agent or broker registers a buyer who purchases property offered through an auction and earns a commission established by the auction firm. This agent or broker accompanies the bidder to pre-auction events and the auction, registers him/her to bid, and receives a portion of the commission.
Prestige auction pays equivalent commissions to the buyer broker- we value your time and encourage your participation by compensating you fairly
Responsibilities of Cooperating Agent/Broker:
Before the Auction
Call auction companies to be placed on their mailing lists.
Attend real estate auctions to learn how they work or go on-line and view on-line only auctions.
Advertise as an agent/broker who is knowledgeable about auctions to obtain prospects.
Attend pre-auction open houses with prospects.
Help prospects determine the market value of the property prior to sale (check comparable, property indebtedness, title, lien and market conditions, and read the due diligence or bidders packet).
Learn the rules necessary to earn a commission for registering a successful buyer.
Learn the terms of the auction.
Review the Buy/Sell contract and any forms that may require your or your buyer’s signature.
Register bidder prior to the auction pursuant to the auction firm's requirements. If on-line bidding only make sure that you have registered your buyer prior to them registering and placing a bid.
During the Auction
Attend the auction with your buyer or be available in the on-line bidding process.
Help them register- make sure you have registered them as your buyer prior to them registering for the auction, this insures you will earn a commission.
Assist prospect at the auction or through the on-line bidding process
Accompany successful bidder to contract room or if on-line walk them through the contract buy/sell
After the Auction
Collect commission check when property closes (handled by title company).
Auctions are a growing part of the real estate industry- don’t be left behind add auction as a tool in your tool box- today.
We here at Prestige Real Estate Auction are excited to work with you and help you increase your sales and revenue by becoming your dedicated auction company.
To your Success!!
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