Fred DeFalco, PA | Real Estate Strategist & Consultant

Thank you for your inquiry into the Auction Services and process.

Each property always has a different set of circumstances and each seller has different and specific needs.

Fred DeFalco, Sr. is an expert in real estate marketing strategies and can come up with an accelerated marketing plan for any type of property.


THE FOLLOWING INFORMATION PERTAINS TO A LIVE AGGRESSIVE OPEN CRY AUCTION; HOWEVER THERE ARE MANY FORMS OF AUCTIONS THAT VARY GREATLY FROM THE INFORMATION PROVIDED BELOW. PLEASE CONTACT FRED DEFALCO 561-391-4141 OR EMAIL US FOR MORE INFORMATION.:


	When it comes to a live open cry auction sale in a 25-39 day time frame, the circumstances, the seller and property needs to qualify and fit the process. Determining if a property will fit a live open cry auction is not a simple process. Please review the following which will be a good starting point and indication if a property may fit the live open cry auction process.


BASIC INDICATORS TO EVALUATE IF A PROPERTY IS A CANIDATE FOR AN AGGRESSIVE LIVE OPEN CRY AUCTION TO BE HELD IN 25-39 DAYS:


1)	The seller's number one motivation must be time and terms of sale! NOT PRICE! Time: 25-39 days for sale date and 30 days or less for closing. Terms: Property sold as-is, buyer pays all closing cost, puts 10% down at day of auction, one page sales agreement with no conditions.

2)	In order to promote the sale and have a good turn out on auction day in 25-39 days, there must be a massive marketing and advertising blitz to tell the world about it. The marketing investment from the seller should be a minimum of $4,000-$5,000 to as high as 2-3% of the assumed market value (value the seller thinks the property might bring) for example; a $500,000 property should invest $10-$15 K in promoting the property. The more marketing money invested by the seller results in more exposure and promotion of the event. The more promotion the more people will know about it and show up to the event, At a recent open house event for one of our auction properties, I asked one prospect how they heard of the property and the auction, their response was "EVERYWHERE", "email blast" " I received 3 mailings" "I saw sign walkers on the street" "I saw it in the newspaper" It came up online during my surfing the web" "my friend in NY told me they saw it advertised on line", this response was on a property of $400,000 assumed market value with a $9,500 marketing campaign. All marketing is committed to and placed within 3-7 days after the listing is signed. This investment must be the seller's to be sure they are committed to an accelerated sales process. These monies are paid upon signing a listing agreement with us.

3)	Expectations and Realities : Any properly promoted and conducted auction should bring the seller a high bidder willing to pay somewhere between 80% and 120% of assumed market value. Is the seller able (after mortgages, debts) and willing to live with those odds and possible results? If the property's assumed market value is $500,000 the bids could be as low as $400,000 or as high as $600,000.

The above are the first 3 items that must be answered openly and honestly by the seller. If the above are a strong yes than you have the possibility of a good live open cry auction candidate and we can structure a sale to meet the specific needs of the seller and property.


REAL SCENERIOS RESIDENTIAL:


A)	Single family home: A recently retired couple purchased a retirement property in South Carolina to be closer to family and friends. Their property was on the market for 12 months, started at $625,000 based on a good seller's market, steadily reduced to $549,000 during 7 months to adjust to market conditions. Listed by a prominent and hardworking agent. At the $549,000 price it was on the market for 3-4 months with no offers and few showings. The agent recommended to the seller the Auction Process and referred us to the seller. The seller committed to and invested $10,000 in our unique marketing program and campaign; the published starting price was $275,000. In the 30 days prior to the auction we received 3 written pre-auction day offers; we sold it at the auction for $480,000. The seller and auctioneer agreed the assumed market value to be around $500,000.

B)	Single family home: An elderly couple whose permanent residence is in New Jersey. Purchased a vacation home at $414,000 to accommodate family and friends when they visited. Too large of a house for them to upkeep, so they purchased a 2 bedroom condo. They listed the vacation home at $459,500. They adjusted their asking price several times during a 9 month period down to $419,500 which was advertised for 90 days with no offers. They decided on the Auction Process and invested $8,000 in our unique marketing blitz; the published starting price was $275,000, in 32 days prior to the auction we received 1 written and 3 verbal pre-auction day offers, we sold it at auction for $369,600. The seller and I had agreed the assumed market value to be around $400,000.

C)	Single family home: Couple purchased home with intent of primary residence. They then purchased and closed on a property in North Carolina to be closer to friends and family. Put property on market for 6 months pre hurricane Wilma for $1,150,000 with zero offers. On 5th month seller had home appraised at $1,050,000. Reduced asking price to $995,000. Wilma hit and home was temporarily taken off market for repairs. Put home back on market for 3 months post hurricane with zero offers. They then decided in the Auction Process and invested $10,000 in our unique marketing blitz; the published starting price was $525,000. Received numerous verbal offers 30 days prior to auction day. Home went to live open cry and sold at auction for $978,000. The seller and I agreed the assumed market value to be around $800,000 due to un-repaired hurricane damages. Two days after live auction the second highest bidder wanted to make a $1 Million Dollar offer to take over successful bidder’s contract.

D)	Single family home: Couple in Boston bought with intent of primary residence. Husband received large promotion and couple no longer needed to move out of Boston. Home was purchased new at $1,080,000. With a referral from an Agent they decided in the Auction Process and invested $10,000 in our unique marketing blitz; the published starting price was $550,000. We received numerous offers prior to auction day, but decided to move forward with the auction. Home sold for $978,050. Seller and I agreed the assumed market value to be around $950,000.

E)	Estate sale, single family home: Brothers were deeded by will a house in the Mizner Park Area. They chose the auction process opposed to the conventional method of sale. This was done in hopes of settling the estate in a timely fashion. The family decided to invest $9,000 in our unique marketing blitz; the published starting price was $321,000. The seller had home appraised at $700,000 before the auction. The marketing produced several qualified buyers and the highest bid of $407,000 on auction day. The sellers decided to not take the offer, forfeit marketing monies and continue to entertain offers. After several months and offers the sellers decided to accept a contract for $420,000. Seller and I agreed the assumed market value to be around $500,000.


REAL SCENERIOS COMMERCIAL:


F)	Two brand new Town homes, builder’s closeout: Two Brand new Town homes left out of 40 in community. The developers and builders put them on the market with the “in house” sales team for 90 days at $695,000 with zero offers. They then decided to take it to an outside broker with the listing price of $659,500. 90 days and zero offers later they decided on the Auction Process so they can move on to their next project. They invested $15,000 in our unique marketing blitz; the published starting prices for both properties were $440,000, received numerous offers 25 days prior to auction. One serious buyer came forth with a $500,000 offer and the Builder and Buyer negotiated up to $540,000 and SOLD PRIOR TO AUCTION. Sold last unit at auction for $580,000. The builder’s and I agreed the assumed market value to be around $600,000.

G)	Single family home: Couple purchased home with intent of primary residence. They then purchased and closed on a property in North Carolina to be closer to friends and family. Put property on market for 6 months pre hurricane Wilma for $1,150,000 with zero offers. On 5th month seller had home appraised at $1,050,000. Reduced asking price to $995,000. Wilma hit and home was temporarily taken off market for repairs. Put home back on market for 3 months post hurricane with zero offers. They then decided in the Auction Process and invested $10,000 in our unique marketing blitz; the published starting price was $525,000. Received numerous verbal offers 30 days prior to auction day. Home went to live open cry and sold at auction for $978,000. The seller and I agreed the assumed market value to be around $800,000 due to un-repaired hurricane damages. Two days after live auction the second highest bidder wanted to make a $1 Million Dollar offer to take over successful bidder’s contract.

H)	Single family home: Couple in Boston bought with intent of primary residence. Husband received large promotion and couple no longer needed to move out of Boston. Home was purchased new at $1,080,000. With a referral from an Agent they decided in the Auction Process and invested $10,000 in our unique marketing blitz; the published starting price was $550,000. We received numerous offers prior to auction day, but decided to move forward with the auction. Home sold for $978,050. Seller and I agreed the assumed market value to be around $950,000.

I)	Florida Keys Marina and Restaurant: Local investor had sudden illnesses that caused him to liquidate some of his portfolio. This property had unique business opportunities including the valuable real estate, 1.84 acres submerged lake bottom, 23,100 sq. ft zoned IS- improved subdivision, residential, marina with 28 slips (with permits to expand slips), Fuel Farm, and 6,000 sq. ft. Restaurant (New in 2004). The owner decided to invest $20,000 in our unique marketing blitz. We produced numerous offers for him within six weeks time frame and the property closed within two months for $6,200,000.00.

J)	West Palm Beach Jai Alai Center: High profile long time customer purchased this property from our Real Estate Brokerage firm. After owning this parcel for years, he decided that the property was not suited for his current needs. He decided to invest in our unique marketing blitz. This parcel had tons of potential in the hands of the right developer. 53 +/- acres, this property is the largest parcel of land in all of Palm Beach County and South Florida with direct access to I-95 and the Tri-Rail. Situated two I-95 exits north of the new Palm Beach County Convention Center and City Place. We produced several LOI’s of which a few were negotiated and the most favorable is now hard and scheduled to close summer of ’07.

WHAT IS A REAL ESTATE AUCTION?

A real estate auction is an innovative and effective method of selling real estate. It is an intense, accelerated real estate marketing process that involves the public sale of any property sold live to the highest bidder -- most certainly including those that are non-distressed. Real Estate Auctions are the most effective means to sell real estate within a very short time frame.

HOW WILL AUCTIONS BENEFIT ME?

The real estate auction is a win-win proposition for everyone included

SELLER BENEFITS:

No commission to the seller

Buyers come prepared to buy with certified funds and large deposits

Quick disposal reduces long-term carrying costs, including mortgage, taxes, insurance, maintenance and other related expenses.

Assurance that property will be sold at true market value, property can be sold with reserve price

Exposes the property to a large number of pre-registered prospects

Accelerates the sale with preset sale and closing dates, determined by the seller

Creates competition among buyers, sense of urgency - auction price can exceed seller’s expectations

Sales not contingent on financing

Eliminates numerous and unscheduled showings

Saves the seller unnecessary long negotiation process, hassle and haggle free, property sold as-is

Aggressive, predetermined marketing program that increases interest and visibility through, local, national and international markets

Minimal closing costs

BUYER BENEFITS:
	The buyer knows the seller is committed, highly motivated and realistic
	Buyer determines the purchase price through live and competitive bidding.
	Smart investments are made as properties are usually purchased at fair market value or below through competitive live bidding, no chance of losing an opportunity
	In multi-property auctions the buyers may choose from many properties at the same time and place
	Auctions eliminate long negotiation periods
	Purchasing and closing dates are known
	Buyers know they are competing fairly and on the same terms as all other buyers
	Title and mortgage services available on site
	Find unique and unusual properties available through auctions.

WHAT PROPERTIES ARE SUITABLE FOR AUCTION?

All types of real estate may be sold by public auction.

Residential properties such as:		Commercial/Industrial/Investment Properties such as:
	Waterfront Property		Shopping Centers
	Town Homes		Apartment Complexes
	Condominiums		Hotel/Motel
	Cooperative Apartments		Resorts
	Single-Family Homes		Land
	Land		Rental Properties
	Condo Conversions		Marinas/Boat Slips

Fred DeFalco, PA
3200 N. Military Trail, Suite 110, Boca Raton, Florida 33431
Office: 561-391-4141 | Fax: 561-391-3911 | Email: Email Us