FAQ - General Questions

What is AuctionPoint?

AuctionPoint is the only online auction tool designed exclusively for real estate brokers and agents. AuctionPoint enables you to quickly and easily create customized auction websites for your listings using your name and brand.

What is the difference between AuctionPoint and other real estate auction companies?

One key difference is the fee structure. Being an entirely online auction platform, AuctionPoint offers the lowest fee structure available today. The other key difference is how AuctionPoint auctions are marketed. Successful auctions depend on successful marketing, and AuctionPoint strongly believes that the local brokerage team is best equipped to reach the correct buyer pool. Although other auction companies claim to assist the broker with marketing to justify the higher fee structure, no single auction company can possibly understand the broad range of property types and markets as well as the local broker. AuctionPoint's solution arms each local brokerage team with a powerful online auction tool and relies on the brokers and agents to do what they do best: attract the best buyers. Importantly, our model allows the brokerage team to earn and keep 100% of their commission.

How do I keep my full commission on deals?

AuctionPoint is not a broker – we offer a tool for brokers. You earn your commission by marketing the property as you always do – now you simply drive qualified buyers to your auction site. We collect a Buyer's Premium from the Winning Bidder at the close of escrow.

Do procuring brokers earn a commission?

AuctionPoint is not a broker – we offer a tool for brokers and agents. The commission agreement between the seller, the listing broker and the procuring broker is not affected by AuctionPoint.

What are the advantages of using online auctions to sell property?

Auctions create deadlines. In a stagnant market, auctions get the buyers off of the sidelines and into the game. Buyers understand that they have a limited window of opportunity to obtain a specific property and that they will acquire the property at the best possible price. They also appreciate the transparency of the online bidding process.

What types of properties are sold via AuctionPoint?

The AuctionPoint platform is designed to effectively present the unique aspects of all property types in commercial and residential real estate.

Do I need an auctioneer's license to use AuctionPoint?

No. State auctioneer license statutes do not apply to online auctions. However, any listing broker using the AuctionPoint tool must be a licensed real estate broker (or licensed sales agent working under a licensed broker). All users of AuctionPoint are encouraged to contact their respective state agencies to make sure that they comply with all applicable laws (e.g., revenue taxes, real estate licensing and disclosure, etc.).

Setting up your auction

What happens when I register with AuctionPoint?

Registration is free, takes just a minute, and enables you to start an auction.

Once I register, who will have access to my personal information?

AuctionPoint respects the privacy of its registered users. Please see AuctionPoint’s Privacy Policy.

How do I start an auction?

Setting up an auction is simple. After you register and pay the start-up fee and auction deposit, you are granted access to AuctionPoint’s easy-to-use set-up screens so that you can create your auction website.

What is the Starting Bid?

The Starting Bid is the lowest price at which your property can be sold. Bids below this amount will not be accepted. A low Starting Bid will attract a greater pool of potential buyers, typically resulting in a higher final price.

What is the Original Asking Price?

The Original Asking Price is the initial price that was set for the property and is displayed in the upper left corner of the Auction Room. The higher the Original Asking Price relative to the Starting Bid, the more compelling the auction will be to the potential buyers.

What is the Winner’s Deposit?

The Winner's Deposit is a non-refundable deposit (applicable to the Purchase Price) charged to the winning bidder, and is set by the listing broker. It can be provided via check or credit card authorization. Winner's Deposits submitted by check are typically made payable to an escrow company and held by the broker until the end of the auction. Winner's Deposit checks are returned to all non-winning bidders. If the Winner's Deposit is submitted by credit card, the credit card is authorized but not charged. The card will only be charged in the event a Winning Bidder fails to sign the Purchase Agreement within two (2) business days of the auction end date. The credit card of the Winning Bidder will not be charged if he signs the Purchase Agreement, and he will be required to submit the full earnest money deposit to escrow via check.

Before the auction

How do I market an AuctionPoint auction?

You market an AuctionPoint auction the same way you market a property. Now you simply drive potential buyers to your customized auction site.

Does AuctionPoint market my auction?

No. You market the property the way you traditionally market, and you simply drive potential buyers to your customized auction site. This enables you to earn – and keep – your commission.

How do I qualify bidders?

Potential buyers must register and be qualified in order to bid. Registration is a simple process. You will receive contact information for every individual who registers. For a registered user to obtain a bidder number and qualify to bid, there are two options: 1) they can provide a valid credit card that can be authorized for the amount of the winner’s deposit; or 2) they can provide a check for the amount of the winner’s deposit. The payee and check destination are configurable by the listing broker. In addition to the above, the listing broker can manually enable or disable the ability of a registered user to bid.

Can I contact the people who register to bid directly?

Absolutely. AuctionPoint encourages you to reach out individually to everyone who registers to bid, and provides you with easy access to contact information for all registered bidders.

Can potential buyers inspect the property before the auction?

It is up to you - just as in traditional transactions, you may offer tours of the property.

Auction day

What can I expect on auction day?

You will have the opportunity to log-on to your AuctionPoint account and observe the bidding “live”. Both during and after the auction, you will have access to the full bidding history. For last-minute registered users, you can also authorize bidding.

Is the seller obligated to sell the property at the starting bid price?

Yes. The seller agrees to sell the property when and if a bid reaches the starting bid price (or the reserve price, if applicable).

Can the seller submit bids?

The seller is prevented from submitting bids on the property, based on the Terms and Conditions agreed to by the seller in the set-up of the auction.

How do I get a signed Purchase Agreement?

You upload a copy of the Purchase Agreement during the auction set-up process. It is recommended that this Purchase Agreement be signed in advance by the seller. When the auction is over, the winning bidder information and price are incorporated into the Purchase Agreement and must be signed by the buyer within two (2) business days. If the buyer does not sign the Purchase Agreement within this timeframe, the Winner's Deposit is forfeited to the seller.

How long does the auction last?

You can configure the auction to last as long as you like. AuctionPoint recommends a two-to-four hour window.

How do I watch the auction?

You simply log-in to your AuctionPoint account and enter the auction room. You have exclusive access to view what users have logged into the site and when, as well as bidding history.

After the auction

What happens when the auction is over?

It is the responsibility of the listing broker to get the Purchase Agreement signed within two (2) business days.

When will the transaction close?

The closing date should occur as detailed in the Purchase Agreement.

What if the Winning Bidder changes his mind? Can he cancel the transaction?

If the Winning Bidder cancels the transaction, he will forfeit his Winner’s Deposit. There may also be other consequences specified in the Purchase Agreement.

What is the Buyer’s Premium?

AuctionPoint collects a buyer’s premium from the winning bidder at the close of escrow. The existing commission structure between the listing broker and seller remains unchanged. The buyer’s premium is based upon a percentage of the winning bid amount. This percentage is set in advance of the auction based on the property’s estimated sale price.

How is the Winner’s Deposit collected?

The Winner’s Deposit is paid only if the buyer does not complete the transaction as expected. If this happens, and the Winner’s Deposit was taken in the form of an authorized credit card, AuctionPoint will then charge the credit card and forward the funds (less a credit card processing fee of 5%) to the seller. If the deposit was taken in the form of a check, the escrow company is instructed to release the funds to the seller.

Introducing auctions to property owners

What types of property owners should use auctions?

All property owners with assets on the market today are good candidates for auctions. Auctions are particularly appropriate for any motivated seller who requires certainty of closing within a short timeframe; for instance, any seller facing loan maturity or who needs to convert a property to cash.

How do I convince a property owner to conduct an online auction?

Auctions create deadlines. In a stagnant market, auctions get buyers off the sidelines and into the game. Buyers understand that they have a limited window of opportunity to obtain a specific property. And buyers bid up the property to its highest possible price.

How do I communicate the importance of setting a low Starting Bid?

Auctions are successful when a large number of bidders participate and bid up the value of the property. In order to generate a large pool of bidders, the property owner must set an aggressive starting bid. AuctionPoint recommends that the starting bid be set to at least one-half the original asking price of the property.

What if the property owner wants to wait and sell the property using traditional non-auction methods?

If the seller is truly motivated, an auction is the best option in today’s market. It creates a deadline for buyers and gets serious buyers off the sidelines.

What if the property owner doesn’t trust that the buyers who register will be serious about purchasing the property?

AuctionPoint recommends that every property owner require bidders to submit a Winner’s Deposit, at an amount set by the property owner. This amount is charged to the Winning Bidder, is non-refundable, and thus strongly discourages “casual” bidding. Setting a high Winner’s Deposit ensures that the Winning Bidder completes the purchase.

What if the property owner doesn’t believe that online auctions will work in real estate?

AuctionPoint was developed specifically for real estate, and the engine takes into full account the complexities of a real estate transaction. AuctionPoint has been successfully used by brokers from CB Richard Ellis and Cushman & Wakefield, among others.

Introducing auctions to buyers

How do I convince buyers to participate in an online auction?

Communicate three key benefits to the potential buyer: 1) it’s a buyer’s market – the market is at a standstill and sellers are highly motivated – there has never been a better time to buy real estate; 2) online auctions provide full visibility – potential buyers may access property details and due diligence materials with the click of a mouse – and on auction day, they can watch every bid that is submitted in real time, giving them the opportunity to win the auction at the lowest possible price; and 3) the buyer has the ability to lock in a great deal – they sign a Purchase Agreement with the Seller within two (2) business days of the close of auction.

How do the auctions work from a buyer’s perspective?

The buyer follows five simple steps to win an auction: 1) register – it’s easy and takes just a couple of minutes; 2) submit the Winner’s Deposit – the deposit is charged only to the Winning Bidder; 3) conduct due diligence and review property information online; 4) bid – on auction day, potential buyers simply log-in and see every bid as it’s submitted, and buyer identity is kept completely confidential; and 5) win – when a bidder successfully wins an auction, they sign a Purchase Agreement with the Seller within two (2) business days of the close of auction. AuctionPoint collects a Buyer’s Premium from the Winning Bidder at the close of escrow.