Where are Furrow auctions held and what happens on sale day?
Most Furrow Auction Company events are held at the property being sold, though some are held at another location, such as a hotel ballroom. Furrow Auction staff will begin registering bidders approximately one to two hours before the scheduled auction time. You will be asked to fill out a bidder card and then you will have the time to inspect the property and go over the information provided on our property information boards. After you are registered, you can ask any questions you may have about the property or the Furrow auction process. The bidding itself may last as little as a half hour for a single property or for several hours when multiple properties are being sold.
What will I need to bring to the auction?
For most Furrow Auction sales, you will need to bring cash, personal check or company check.
What happens if I am the successful bidder?
Immediately after the event, you will pay a 10% non-refundable deposit and sign a contingency-free contract agreeing to close within 20 days. As you bid, remember that the actual sale price will, in some situations, include a buyer’s premium that is added to the high bid (where applicable).
Can I make the contract contingent upon financing or inspections?
No, the auction contract is contingency-free. For this reason, it is very important that you finish your property evaluation and arrange any needed financing before the auction. Generally, the marketing begins 30 to 60 days prior to the actual auction allowing adequate time to make inspections and arrange financing.
Will I be able to understand what’s going on during the auction?
Yes. If you have a question during the sale itself, just ask one of the bid assistants, who will be positioned around the bidding floor. They’ll be delighted to help.
What if I want to be represented by a broker?
If you wish to be represented by a broker, he or she must complete the required broker participation form (when applicable). This form is available on our website or by calling 865.546.3206. The broker must register with Furrow Auction Company 48 hours prior to the auction to qualify for a commission. Broker participation is not offered on all of our auctions. When available, it will be listed on our property brochures as well as on our website at www.furrow.com.
What are the advantages of a Furrow Auction as opposed to an ordinary listing?
Practically all sellers desire to get their property sold more quickly. Beyond that, however, we hear numerous reasons, including these:
It focuses the demand factors toward a specific date of performance and creates a timeline to perform by the buyers. Additionally, it is a process wherein we provide most of the due diligence to the buyer, and makes an unconditional closing date normally 20-30 days after the auction as opposed to a due-diligence period that can drag out and ultimately be a basis for rejection of the transaction.
A properly conducted auction will withstand criticisms and attacks for everything from integrity to intelligence, and questions by any dissenting parties. This allows all parties to come and bid, to witness the transaction, and takes away the ultimate “I knew somebody that would have paid more” challenge that can occur when a property is sold at private treaty under these contested conditions.
The auction method, notwithstanding its ability to withstand challenge to the transaction, still has the ultimate safety of allowing all ownership entities the opportunity to bid on the property.
We encourage and provide for “Broker Participation”, which allows a sharing of the commission by licensed real estate brokers who properly register their clients prior to the auction under conditions that are established by Furrow Auction Company and approved by all parties.
All parties who have an interest in the ultimate sales price have an opportunity to impact the sale by encouraging and identifying, and helping Furrow Auction Company develop interest that any party feels they can impact.
An auction will reflect more current market demand values than will a pricing structure that is based on historic or anticipated market demand values.
What’s the difference between an absolute and a reserved auction?
In an absolute auction, the property sells to the highest bidder regardless of price. This type auction tends to get the best results, because it attracts the largest number of bidders. This type of auction is sometimes referred to as an “unreserved” auction.
In a reserve auction, the seller retains the right not to convey the property if the high bid is deemed unsatisfactory. The reserve is usually not communicated. (Note: This type of sale is sometimes referred to as “subject to seller confirmation.”)
If somebody didn’t make an offer on a property when it was offered through an ordinary listing, why would he or she bid at auction?
The most common reason is that they never knew about the property before. The compressed time period for promoting an auction allows us to bring the property to the attention of far more people than would be possible in an open-ended campaign. Another common reason is that the property may have had an unrealistically high asking price. When an asking price is out of line with the true market value of a property, many buyers feel that there is no point in making a lower offer. With an auction, there is no asking price, so we don’t have that problem.