Since virtually every investment class asset from stocks and bonds to rare art and collectibles, to thoroughbred race horses, is traded in an auction market, it was an easy decision for Meredith Fine Properties to offer this type of liquidity for owners by establishing a credible offering service. This is an effective way to discover the market and create an air of competition to garner the highest value that the market will bear on any property. It provides time-sensitive liquidity through an aggressive marketing program which is an advantage not only to sellers who desire to cash-out, but also to buyers who desire to cash-in to an alternative investment at fair market value.
A type of offering process in which all bidders simultaneously submit an irrevocable Sealed Bid Offer to the Seller, so that no bidder knows how much the other interested participants have bid. The highest bidder is usually declared the winner of the bidding process. “Put your best offer forward, and then we will decide if the best offer is something we want to consider.” The Seller also reserves the right to accept any offers at any time before or after the bid opening. Seller has the right to accept offers prior to completion of the Sealed Bid process.
Sealed Bid Sale
In these challenging economic conditions and times, Sellers are experiencing the fact that traditional methods in selling their luxury real estate are not always effective. It is now time that Sellers of luxury real estate consider a much more aggressive method of sale while at the same time, prudence would dictate using cautionary measures in the choice of these methods. The sellers' of these properties have chosen the Accelerated Marketing Method in order to sell their properties in an expedient and timely manner.
Not all real estate is sold at a “public outcry” auction event. There are times when it is to the Sellers advantage to offer their real estate in the form of a Sealed Bid Offering, offering their property to qualified buyers in a fair, expeditious and uncomplicated process, in advance of a pre-determined time deadline. The Sellers ultimate goal is to determine the highest price someone is willing to pay! A Sealed Bid Offering is a process in which all bidders simultaneously submit sealed bids to the Sellers counsel, so that no bidder knows how much the other buying participants have bid. The highest bidder is usually declared the winner of the bidding process, so long as it meets the confidential minimum reserve amount set by the Seller. Seller reserves the right to accept or reject any bids received, prior to or after the bid deadline. All bids will be considered on the basis of purchase price, payment type, contingencies and other most favorable terms to Seller. The Seller can take one of the following courses of action: Accept the highest or best bid; reject all bids and call for a “Best and Final” bid from the highest bidders, or just commence serious negotiations with all the identified bidders.
The Sellers’s counsel and the Seller are the only persons who receives and know the bid; so the process is totally confidential. This bid process is common throughout the market and is considered one way to sell unique, high-value real estate. The transaction takes place between the Counsel representing the Seller and the Buyer. There is a 10% buyer's premium added to the purchase price. The listing broker, Meredith Fine Properties Group of Long and Foster Real Estate, Inc. does the customized marketing to Buyers; advertising, open houses, public relations etc. and receives the agreed to listing commission. The Seller is responsible for marketing expenses. The sale produces a cash non-contingent buyer who buys the property in as-is where-is condition with no expressed or implied guarantees. Real Estate taxes will be prorated as of the date of closing. The buyer shall pay all closing costs for sales in the county where located, included, but not limited to, all documentary stamps, transfer taxes and title insurance. Title shall pass to the buyer at formal settlement.
A sealed-bid auction is an incentive-based method of sale, structured on the performance of the entire marketing process and ability to generate a demand for the property to drive the highest sales price possible for a Seller. If your ultimate goal is to determine the highest price someone is willing to pay, an auction is the way to go. An auction is also an effective way to meet a deadline. If there is a reason to ensure a piece of real estate is sold by a certain date, scheduling an auction is the way to go. Sealed-bidding is discrete. Buyers who want their privacy prefer sealed-bid auctions rather than bidding on-site in person against other bidders.
Shorter Days on Market
"Sell in 90 days or less", by specifying a date on which you intend to sell, you create a sense of urgency with potential buyers and this becomes a catalyst for the entire sales process.
Focus on your property alone by exclusively showcasing it throughout the marketplace, which will provide maximum visibility among the target market most likely interested in your property. Our experienced marketing professionals, public relations and direct sales efforts will bring your property to the attention of qualified prospects.
Shorter Carrying Costs
A sealed-bid auction helps you eliminate the costs that erode your equity, and will often net you the highest price possible.
Buyers act on your schedule because you set the date and time of the sale and the terms and conditions such as earnest money deposits, closing time frames and more, thus eliminating negotiations. Potential buyers know you are committed to sale on a specific date, therefore, they do their homework in advance and arrive ready to bid on sale day.
Luxury properties have few 'comparables' upon which to base a true appraisal. Auctions establish the fair market value and eliminate guesswork in determining the asking price. There's no limit on the upside potential.
"Close in 30 days or less", sealed-bid auctions can be made contingency free, so you'll be able to make plans based on an on-time closing of your property.
Longer Days on Market
In a slowing market, it’s possible that your property will remain on the market for months or even years, leading to price reduction to encourage buyer interest and activity.
Your property will be one of many that is minimally advertised, which creates a heavy reliance on the Multiple Listing Service. A property that remains on the market for an extended period can become a serious drain on you and your equity. Mortgage payments, maintenance, taxes and insurance can add up to thousands of dollars a month for some properties.
There is less motivation for buyers as you are waiting on them. Plus, you must negotiate all aspects of the sale.
Longer Carrying Costs
You risk over pricing, and thus seeing little interest, or under pricing and selling for less than the property is worth. The upside potential is limited by the asking price.
If you have ever 'sold' a property contingent on financing or on the sale of the buyer's property with other common contingencies, you know how difficult and frustrating closing that sale can be.
Many Buyers prefer auctions as their venue for very high-value purchases. By only contacting these buyers with special offering opportunities, the firm maintains a communicative relationship with them. And most importantly, auctions allow a buyer to control his level of participation and NAME THE PRICE he is willing to pay for the property.
YOUR DREAM LIFESTYLE FOR YOUR DREAM PRICE!
This auction process serves high-net-worth individuals through an accelerated solution that obtains fair market value for real estate assets by inviting qualified bidders to compete in a transparent forum. Sellers enjoy the benefits of a non-contingent, cash sale with closing occurring within 30 days. Properties are offered with no reserve and no contingencies. Absolute Auctions typically get the most bidding. For the Seller, the risk associated with an Absolute Auction is greater than the other types of auctions, but so is the potential reward. Seller pays all marketing fees up-front. Buyer premiums can start at 10% and go higher.