Welcome to Southern States Auction

Real estate auctions have become an important marketing source for both individual sellers and real estate agents working with their clients.  For sellers, it is a proven method that produces a sale for a good price in a short time frame.  For real estate agents, it offers another marketing option without giving up their client or their right to the commission.  Below are some of the more frequently asked questions.

Why sell real estate at auction?  Auctions offer sellers the ability to reach a large number of buyers all at once rather than just a few people, one at a time.  Consider this example: you have a one hundred acre tract priced at $5000 per acre that has been for sale for a while.  To sell the property, you need a buyer interested in a tract of that size, in that area who has $500,000 to spend.  Usually, that’s a small number of people.  But, if you offer that same tract into 10 separate ten-acre lots, you expand the market to 10 buyers who want 10 acres or more with $50,000 to spend.  Usually, that’s not too difficult.  And, when you sell it all at once in a single sale, you get all of the money (sometimes more) in one check just as if you sold it to one buyer.

From the real estate agent’s point of view, the goal is to sell the property at a price your client wants, get paid for your effort and maintain a relationship with your client for future business.  An auction can produce the desired result and a good auction company will respect your agency relationship.  In short, if an auction company is trying to steal your client, find another auction company.

Is my real estate right for an auction?  That depends on several factors: the location of the property, demand in your area for that type of property, sales of similar properties, the amount of debt and more importantly, your expectations.  You need an experienced auction company to evaluate these items in regard to the market and your needs. 

Isn't it risky?  A good auction company can reduce the risk for the seller.  First of all, if an auctioneer doesn't feel he or she can meet your expectations, they should not get you involved in a sale.  And, in assessing your situation, the auctioneer should be able to structure the sale in a manner that reduces the risk to a degree that makes you comfortable.  A word of caution – without a background in real estate auctions, inexperienced auctioneers usually see your property as too risky to sell, when in fact, it may have good potential for success.  Many people miss a prime sales opportunity due to bad advice from an inexperienced auctioneer.  You need an evaluation from an auctioneer with experience in real estate auctions and a track record of success.

Do I have to sell my property, even if it doesn't bring the price I need?  No, you don't.  Unless the property is offered at ABSOLUTE auction, you have the right to accept or reject any of the bids you receive at the sale.  There are certain advantages to selling absolute (with no minimum), but those advantages come at the loss of control over the final selling price.  Your auctioneer should be able to explain the advantages and disadvantages of the different ways of offering your property and which of these is best for you.

If I’m working with a Real Estate agent, won’t I have to pay a bigger commission?  No, commission costs are usually the same or less.  In most real estate transactions, agents offer commission splits with other agents who produce a buyer.  This split is a portion of the overall commission charged.  A good auction company recognizes the real estate agent as the “listing agent” and the auction company as the “selling agent” and divides the commission according to normal practices.  In some auctions, the buyer pays part of the commission in addition to the sale price.  In that case, your commission cost will be reduced by the amount the buyer pays, resulting in a lower fee to you.

I have a lot of personal property to sell also.  Does that sell well at auction?  Auction sales with a mixture of real estate and personal property (such as estate sales) generally produce more money than selling the two separately.  The reason has to do with the size of the crowd.  If a buyer comes to an auction to buy a house and two acres of land, he or she can't to tell if the guy standing next to them came for the same thing or if he is only interested in the dining table and some tools.  A good auction company understands how this uncertainty affects human nature and how to use that uncertainty to your advantage.  And, as an added benefit, a lot of the junk you intended to haul off to the dump was boxed and tagged by the auction company, then sold to someone who pays you cash and takes it with them.

If this is such a good deal, why doesn't everyone do it?  Not every property or every seller is suitable for an auction.  You need an in depth evaluation of your property and your situation to determine if this is right for you.  You need an experienced auction company.  We'd consider it an honor to help.  Call us at 864-585-7773 or toll free at 1-800-581-7773 for a no cost, no obligation property evaluation.

Company Profile

Southern States Auction Group, Inc is a professional real estate auction company headquartered in Spartanburg, SC.  The company was incorporated in January of 1996.  Principals of the company have been continuously employed full-time in the real estate auction industry since 1986.  The primary marketing area for Southern States Auction is in upstate South Carolina and western North Carolina.  Even still, with alliances through trade organizations the company has the ability to successfully bring properties to auction anywhere in the United States.  During their careers, the principals have conducted hundreds of real estate auction sales in an area encompassing Virginia, North and South Carolina, Georgia, Florida, Tennessee and Alabama.

Mike Lowe, as broker-in-charge, is a member of the National Auctioneers Association, The Certified Auctioneers Institute and holds the industry's recognized designation Accredited Auctioneer, Real Estate. 

Southern States Auction is closely associated with Property One, Inc., a traditional real estate sales organization and Southstar Partners, a development company owned by the principals of Southern States Auction.  This unique alliance gives sellers the benefit of several different points of view.   Principals in the company are also members of the Board of REALTORS, thereby subscribing to the highest ethical standards in the industry and demonstrating a willingness to work with other agents on a true peer basis.