Fact: An auction is the oldest method of selling anything in the world. They’ve been around since 500 BC.
Premier Real Estate Auctioneers is setting new industry standards to an ever-changing global real estate market, reporting that they provide professional service, on time and on budget while equalizing maximum returns.
Further, the company insists that when used as an innovative tool, the auction process helps local and national economies while alleviating the real estate market of its excess inventory, stressing that while traditional real estate negotiates downward, real estate auctions negotiate upwards.
“Premier Real Estate Auctioneers is a young company with seasoned veterans inside,” says Colonel Cole Wyatt Davis, CEO, president and founder of the company. “We have the ability to save the seller thousands, sometimes hundreds of thousands of dollars in commissions they would otherwise have to pay in a traditional real estate transaction while bringing in buyers and sellers both internationally and nationally with open-scale, ballroom-style auctions at the Tower Theatre in Bend.
“We launched the company two years ago, orchestrating pilot programs all over the country in ballroom fashion, on-site and over the internet, but found the most effective method was the ballroom site. The company continues to grow – we’re a presence in 15 states and are opening in two countries besides the United States.”
Unique to the ballroom style is that it offers many properties at one time, where the buyer is situated in a controlled environment with the option of purchasing multiple properties or just one. A ballroom event, which also allows internet and telephone bidding, usually takes place in a central location such as the Tower. Potential buyers are pre-qualified and there are no contingencies. Property is purchased at the highest value in an open transparency where the bidder card is held high in the air and the ringmen in the auction catch the bid.
A fourth option of bidding is called a sealed bid. All bids are funneled to the auctioneer. These ‘chiefs of the night’ make the final decision in the way the property is sold. “An added feature about our process is when we list the property, they can be sold ahead of time,” says Davis. “People can submit offers and the properties can be sold up to three days before the auction. If no deal is struck, they go into the ballroom auction to honor the folks who have driven or flown in or have spent time on the internet.”
Davis goes on to explain the two styles of listing a property. One is called absolute, in which the property sells to the highest bidder, no matter what. The other is called the reserve, which means sellers are protected in that they are allowed to put a minimum price on what they are willing to accept.
“If the reserve is not met, we’ll still present the highest offer the next day and then the seller is allowed to counter, reject or accept that offer,” says Davis. “If the offer still does not meet the reserve, they stay a part of the company for up to six months, which is as long as the contract lasts. We keep trying to sell the property but it doesn’t go across the auction block anymore – that being said, we’re still selling the process.”
According to Davis, the auction entry fee for one piece of property is very reasonable. “It costs the seller $3,000 for marketing and an additional $2,500 for the auction run fee,” he explains. “When the property sells, sellers are credited back in escrow the $2,500, so all it ends up costing them is $3,000 to sell their property. We charge the buyer 10 percent and that is split between all the agents, whether they’re a part of our company or are associated with companies that have brought in the listings or the buyers. That method of payment is the industry standard throughout the country.”
Davis states that as a gesture of good faith, Premier Real Estate Auctioneers is willing to award a major discount to the first five people who call in and sign contracts, which pencils out to approximately $12,500 worth of services at no charge for the January, 2009 real estate auction at the Tower. “We’re all in this together,” says Davis, who claims Premier Real Estate Auctioneers is one of the top auction companies in the world today. “We work with real estate agents from other firms all the time. And sometime in the near future, we’ll be handling distressed properties as well. If you want to sell your property promptly, we’re it.”
Loretta Sayers recently joined Premier Real Estate Auctioneers as a broker with the local and international teams, bringing six-and-a-half years of experience to the table. I asked this 30-year resident of Bend why she chose this particular company to align herself with on a professional basis.
“The primary thing that attracted me to this business was the auction process is not only a new tool to help bring buyers and sellers together to move property, I believe it’s the most effective tool,” she says. “In being a part of that, I’m allowed to bring sellers and buyers to the table and collect my commission. Outside agents can also bring buyers and sellers to the table and earn their commission as well. Although they get paid a bit differently than an agent who is affiliated with Premier Real Estate Auctioneers on the listing side, the buying side is the same.”
Aside from hosting auctions at the Tower, Premier Real Estate Auctioneers plans to orchestrate similar events at places like the Fairmont Hotel in San Francisco, the Brown Palace in Denver, the Galt House in Kentucky and The Olympic in Seattle. “We’re extremely excited to be at the Tower,” says Davis. “It’s a huge accomplishment and we’re grateful for all the support our company has received.”
Davis, a certified CAI Auctioneer, along with other select members of his team at Premier, holds the highest prestigious designation possible in the auction industry. “The process takes approximately three years to complete at Indiana State University, and you must apply to be accepted,” he shares. “Hosted by the National Auctioneers Association, the program consists of three years of testing to make sure you’re one of the best in the world before graduation. You must be a seasoned veteran to be able to accomplish this. Of 15-20,000 auctioneers in the country, less than 1,000 hold this distinguished designation.”
Sellers, imagine that instead of keeping your home in pristine shape 24/7 with the intention to sell, you are only inconvenienced once for six hours for an on-site sale. Davis states that with an extraordinary track record of less than five-percent fallout from failed contracts, Premier Real Estate Auctioneers provides its customers with what he terms ‘real estate in reverse.’
“Premier does most of the research for you,” he says. “We order the title, provide disclosures up front and schedule preview and inspection days. There is a 30-day closing after the event, so if someone wants to line up financing they can.”
In his own words, Davis is ‘giddy’ about the future of Premier Real Estate Auctioneers, stating, “We started to run a profit on the third day after opening our Bend office and it hasn’t stopped. A primary goal for our company is putting people back to work – when homes sell, carpets have to be cleaned, walls need painting and escrow officers are busy doing what they do best. Someone may want to fix their house up a bit to add curb appeal before the auction and safety issues must be addressed. In the light of many jobs being lost, I’m excited we’re able to look people in the eye and help them get back to work.”
Davis shares the fact that the company is experiencing ‘crossover buyers’ coming from other industries like aviation and mega yacht auctions who are expressing interest in the real estate arm of Premier Real Estate Auctioneers.
“Many of these clients were never exposed to the properties and are now on our website watching them on a daily basis,” Davis says.
“My philosophy is if you don’t stir the pot, it usually burns. On auction day, we’re looking for two things: the name of the high bidder and what they’re willing to pay. Aside from providing a win-win scenario with real estate expertise, where else will you ever sell property followed by applause?”
Information: 800/286-8761, 541/647-2449 and www.bidpremier.com.
