AuctionPoint2014

FAQs

The commercial real estate online auction event of the year

Frequently Asked Questions

General Top

Q: When will AuctionPoint2014 (AP) take place?

A: The full list of commercial properties to be auctioned through AP will be released in March 2014. To be notified by email when this list is released, please click "Notify Me" on our home page. Online bidding for these properties will take place in May 2014.

Q: What is the difference between AuctionPoint2014 and other real estate auctions?

A: The main benefits of AP, compared to other auctions, are: (1) AP pays for national and local marketing and (2) AP charges the lowest Buyer's Premium in the industry (2.5%).

Q: Who runs AuctionPoint2014?

A: AP is the only large-scale national CRE auction event organized by brokers, for brokers in a collaborative environment. The AP Event Committee consists of executives from the top commercial real estate brokerage firms around the country, and the online auctions are run through AuctionPoint the nation's leading broker-centric auction platform.

Q: How much does it cost to participate in AuctionPoint2014?

A: AuctionPoint2014 is one of the most cost-effective ways to accelerate property sales, and the value received from the marketing we provide alone far exceeds the setup costs. The setup fee is just $395 per auction. The auction deposit (typically posted by the Seller) is $1,200 and is fully refunded by AuctionPoint at the close of escrow. AuctionPoint collects a 2.5% buyer’s premium (subject to a $5,000 minimum) from the winning bidder at the close of escrow. The existing commission structure between the listing broker and seller remains unchanged.

For Brokers Top

Q: Do listing brokers who submit properties to sell at AP retain their commissions?

A: Yes.

Q: Do procuring brokers get a commission?

A: Yes. Commission splits between listing brokers and procuring brokers remain intact. The “For Brokers” tab on each auction website lists the procuring fee for each property.

Q: How will AuctionPoint2014 be marketed?

A: AuctionPoint2014 will be marketed to commercial real estate investors, brokers and users through a comprehensive national marketing campaign. This campaign will include advertising in The Wall Street Journal, LoopNet, PropertyLine, RedNews, and numerous other publications. We will also leverage the most expansive commercial real estate databases in the industry allowing us to communicate directly with prospects. The result is massive exposure for your asset. Our last event attracted 51,507 visitors and 4,956 bidder registrations.

For Sellers Top

Q: What types of properties are best to auction?

A: In general, investment properties with a value of more than $1,000,000 sell the best at auction. Multi-family, industrial, office and retail properties with cash-flow are the top performing asset types.

Q: How do I submit my property to be sold at AP?

A: Each property submitted for consideration will be carefully reviewed by the AP Asset Approval team to make sure it is a good fit for auction. Click here for further details on submitting an asset.

Q: Do I need a broker to sell my property at AP?

A: Yes. All sellers auctioning properties through AP are represented by a broker. If you are currently not represented by a broker, we are happy to work with you to find the broker who best meets your needs.

Q:  What percentage of your auctions close?

A: As a policy we do not publically disclose any statistics which relate to buyers, sellers, sales prices, nor close rates. However, we do provide prospective sellers with a representative list of properties sold during our last 2 events upon request. In addition, although the ultimate goal for all parties involved is to acheive a successful closing, this outcome is in the hands of our sellers and bidders. The statistics which AuctionPoint controls relate to massive exposure for our events: our key Q2 statistics were 51,507 vistors and 4,956 bidder registrations.

For Buyers - Prior to the Auction DateTop

Q: What types of properties will be sold at AP?

A: All commercial property types (as well as notes) from around the country will be sold at AP, including multi-family, retail, office, hospitality, mixed-use and industrial.

Q: Can I inspect the properties before placing bids?

A: Yes. All properties are available for inspection prior to the bidding date.

Q: Can I submit a pre-auction offer?

A: Yes. Pre-auction offers are encouraged. If you would like to purchase a property prior to auction day, please contact the listing broker to submit your offer. If a property enters contract prior to the bidding date, the property will be removed from the auction event and all participants will be notified.

Q: Who owns the properties being auctioned?

A: The properties being auctioned are owned by banks, corporations, partnerships and other motivated owners who wish to liquidate their assets.

Buyer Registration Top

Q: How do I get more detailed information on the properties?

A: Once the list of properties is released, you will be able to access the auction website for each property by clicking on the “Details and Bidding” button. There, you will find all pertinent information about the property, including due diligence materials and financial information.

Q: How do I register for the auction?

A: There are two ways to register for the auction. To register for any property auction, you may do so by going directly to the auction website for that property. If you would like to register for multiple properties, please call us at (800) 807-1688 and ask about our Premier Registration program.

Bidding Top

Q: How do I place bids?

A: Please make sure that prior to the auction date, you are registered and have submitted a Bidder’s Deposit. On the auction date, click on the “Details and Bidding” button next to the property you are interested in bidding on and sign in. You will then be able to place bids.

Q: Can the auction company or seller place bids?

A: No. Bids are only accepted from buyers who have registered and submitted a Bidder’s Deposit. AP does not allow the auction company or seller to place bids.

Q: What is the Buyer’s Premium?

A: The Buyer’s Premium is a fee equal to 2.5% of the winning bid amount, which is payable to the auction company at the close of escrow.

Q: What is the Starting Bid?

A: The starting bid is the lowest price at which which you may bid.

Q: What is the difference between a Winner’s Deposit and Earnest Money Deposit?

A: The Winner’s Deposit is a deposit posted by anyone wishing to place a bid on auction day. The Winner’s Deposit is refunded if you are not the winning bidder. The Earnest Money Deposit is posted by the winning bidder as part of the escrow process (see purchase agreement for specific terms).

Q: Can I bid on more than one property at the event?

A: Yes, buyers may place bids on more than one property. Note that for each property auction, you will need to register and submit the Bidder’s Deposit. If you would like to register for multiple properties, please call us at (800) 807-1688 and ask about our Premier Registration Program.

Q: Are sellers obligated to sell their properties?

A: Yes, as long as the reserve is met, the seller is obligated to sell the property.

Closing Top

Q:  What happens if I’m the winning bidder?

A:  If you are the winning bidder, you will be contacted to execute the purchase agreement for presentation to the seller.

Q:  Does the winning bidder get a due diligence period after the auction?

A:  In most cases, yes. Please refer to the purchase agreement posted to the auction website for details.

Q:  When will the transaction close?

A: Most transactions close within forty-five (45) days after the auction date. Please refer to the purchase agreement posted to the auction website for specific terms.