Property auctions are one of the best and fastest ways to buy and sell all types of properties. Real estate auction procedures might sound intimidating to a first-time buyer or seller, but the process is actually quite simple.
Once a property is listed with Tranzon and the auctioneer and seller agree on a date of sale, we typically spend about 30 days marketing the property to potential buyers and providing them with information on the property. Then, on auction day, bidders log in or show up in person to bid on the real estate. For the winning bidder, the closing process begins immediately.
Whether you are buying or selling, whether on-site or online, auctions are a game-changer in real estate. Explore how the Tranzon real estate auction process works and enjoy the benefits of buying and selling your property at auction.
Auctions in action
There are many ways to conduct the real estate auction process, but by definition, it an auction is any sale in which buyers compete (or "bid") to determine the price of an item being sold. The auction method has been around for centuries, and it continues to thrive because it is one of the fairest and most transparent ways to conduct a sale. It’s also been said to be a lot of fun.
How Do Real Estate Auctions Work for Buyers?
Here are the simple steps you'll take as a buyer in the real estate auction procedure:
- Find property: Search for the type of property you're looking for — we list all kinds of real estate, including residential, commercial, industrial, and land. And when you sign up on tranzon.com, you'll be notified when properties you're interested in are listed.
- Conduct research: Tranzon provides data about all our listed properties in a downloadable document called the Property Information Package (PIP), and you can take a tour of the property at the available times listed. You'll need to make sure you understand all the documents, details and fees before the auction starts. If you have any questions at all about the property or the terms of sale, our auction professionals are here to help.
- Register to bid: If the auction is held online, you'll use an online registration link to request approval to bid. For a live auction, you'll register at the auction's location with the required deposit. The PIP offers more information about bidding requirements, and our contact agent for the property can walk you through registration and approval or answer any questions you may have.
- Attend the auction and bid: Check in online or show up in person before the auction is set to start, and then go ahead and bid!
- Win: At the end of the designated auction period, the high bidder is determined. In an absolute auction, the highest bidder is the winner of the property. In a reserve auction, a determination is made as to whether the high bid has reached a certain price requirement. In either situation, one of our agents will provide you with instructions on the next steps to take in the post-auction process. Closing typically occurs 30 to 45 days after the sale.
Selling Your Property at Auction
Auctioning your property is simple — Tranzon's auctioneers take care of the little details for you. Here are the steps you and your auctioneer will take as a seller:
- Discuss your terms: After you and your auctioneer decide that selling your property at auction is the best way to meet your goals and situation, you can discuss your terms and ideal timeline. The auctioneer will give you recommendations for structuring the sale in a way that best marries your goals and needs with market conditions and buyer interest.
- Market your property: Tranzon's experts will work with you to create the most effective outreach and marketing strategy, and then we'll get to work — proactively and effectively marketing to a targeted spectrum of investors and end-users across the country.
- Auction your real estate: On the date of sale, your auctioneer will be ready to auction your property online, in person or both. Interested bidders will compete, coming together to bid in an open, transparent, and market-driven process.
- Close: When the high bid is determined, we'll assist you as you take the necessary steps to close on your property. In an absolute auction, the purchase agreement will be signed immediately. If your auction has a reserve, we'll review the high bid with you and walk you through the next steps you can take. Real estate sold at auction is sold as-is, without contingencies — so you don't have to worry about additional inspections, price or fee negotiations, or other slowdowns to the closing process.
Check out some of the resources below to learn more about auctions, how real estate auctions work, and what they have to offer.