Real Estate Auctions

1. Module 3C – Advertising Methods Real Estate Auctions Starting 1 Week Prior to the Auction

2. Website • Set up a quick free WordPress website specifically for your 2-Day Auction that provides the date of the auction and opening bid price, a couple photos of the home (just 2 or 3 to entice people to see the home,) a detailed written description of the home’s features, an FAQ about the auction process, your contact information, and an “About Us” and link to your company website if you have one.

3. Craigslist • Post a free Craigslist classified ad each day – make sure you mention a few key points in your ad: Your starting bid price (that’s a huge draw because of how low the amount will be,) the address of the home, the dates the auction, and a link to the WordPress site you put together. If you have an inexpensive local paper, you can do a small classified ad in there as well, but don’t expect it to generate a ton of interest.

4. Postcard Direct Marketing • Postcard mailing to 500-1000 people who live in single family homes surrounding the home. Use Click2Mail.com to print and mail the postcards to keep it simple. You can buy the mailing list from a source like ListSource.com or Melissa Data. Make sure to get this set up in plenty of time such that the postcards arrive to the homes 2-3 days before the auction. This is actually the most expensive item out of all the things you would do to advertise, but it’s great for getting the neighbor’s attention and spread word of mouth advertising.

5. On the day of the auction … • Bandit Signs work in great to get people interested. People are driving by quickly so it can only really give a few key points. • Sample of bandit signs script could be: • Private Home Auction – TODAY! • starting bid price, the times of the auction, and an address • Check your city ordinances • when putting up bandit signs

6. On the day of the auction … • Have people hold large directional signs that promote the auction to those driving by. Pay a few guys by the hour to stand out on the side of the road at the closest street with good traffic. You will be surprised how many people who come to the auction are a result of seeing those signs.

7. Insider’s Tip • On the day of the auction, take yellow Post-It Notes and write great features/info on them and place them in strategic areas of the home. For example, on the appliances, on the cabinet that opens up to have a trash can inside - basically on anything that is special but may not be obvious to a casual observer.

8. Important Notes • In case you host an auction where the bids simply aren’t high enough to break even or profit, it is really important for you to understand (and share with your bidders) that you are not locked in to your bids and neither are the bidders. • Have an attorney review the language, but you should be aware of a few facts: • Are bids legally binding? • No. Bids are not binding until a sale contract for the property has been signed. • The bids are essentially the equivalent of a verbal offer. It’s important that the auction rules (see Appendix) be on a paper that everyone receives when they walk into the property • If for some reason, the results of the auction are not satisfactory at the event — but there is lots of traffic — the process should be repeated in a couple of weeks.

9. Attachments • Appendix – Rules & Regulations • Registration Form for the Round Robin • Auction • End of Module 3