Where are Palatium Auctions® held and what happens on sale day?
Palatium Auctions® events are typically held at the property being sold, though some may be held at another location, such as a hotel ballroom. Palatium Auctions® staff will begin registering bidders approximately one to two hours before the scheduled auction time. You will be asked to show your cashier's check, if required, and then you will receive a package of information about the property. After you are registered, you can enjoy your property review and ask any questions you may have about the property or the 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 auctions, you will need to bring a cashier's check made out to yourself. The amount required will be located in the brochure or the Property Information Package (PIP). You may also call 314-690-1978
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 Purchase and Sale Contract agreeing to close within 30 days. As you bid, remember that the actual sale price will usually include a buyer's premium that is added to the high bid.
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.
Will I be able to understand what's going on during the auction?
Yes. Before the sale, we ordinarily conduct a mock auction so that everyone can get a feel for the pace of the sale and the chant of the auctioneer. 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 registration form. This form is available online or from our Auction Information Center at 314-690-1978. In most cases, the broker must register with Palatium Auctions® 48 hours prior to the auction to qualify for a commission.
What are the advantages of a Palatium Auctions® Auction as opposed to a traditional listing?
- Shorten time on the market - translated into higher net income and lower risk
- Reduces cost-of-ownership – taxes, insurance, maintenance, utilities
- Seller controls "Terms and Conditions" - eliminates negotiation & contingencies
- Reduced Risk - selling "AS IS" w/o warranties and disclosures
- Quick, Clean, Decisive, Fair, Transparent - most accepted practice for determining value worldwide
- Generates Urgency - a heighten awareness of property, while slowing neighboring sells (creates focus on Seller's Property)
- Generates Competition - brings together multiple buyers prepared to bid / buy
- Seller Opportunities - owner financing / 1031 exchange
- Auctions always achieve, and many times exceed perceived values...through competition
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 unreasonably low. 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 a traditional 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. In many cases there is simply no urgency on behalf of buyers until they see the auction sign...now they feel they must move, or risk losing the opportunity to buy.