Why The Bounds Auction Company
The Bounds Auction Company strives to create a comfortable and enthusiastic bidding environment.
Our experience shows.
Our experience makes the difference.
From initial strategy & planning, through property preparation, staging, marketing, clean out, personalty disposition to closing and post-sale planning & consultation. We are with you every step of the way.
Case Studies
Type of property: Urban duplex in rental market. Two small units, ground floor 1 bedroom, 2nd floor two bedroom, unutilized full basement, renting at less than $1,000.00 per month on month to month leases.
Property condition: While a rather unattractive building on the exterior, both apts were in reasonably good repair, no required repair issues, both tenets were long term and desired to remain. Corner location across from a very active fire department station, on street parking only, stable neighborhood on a block of primarily single family row homes in good repair.
Owner had serious health issues and simply wanted to cash out. He had been doing all the management and repairs himself and had 100% equity. Property had not been offered to the market in over 40 years and had not been listed prior to the auction marketing. The market in that community at that time was weakening, coming off a recent high, with a growing inventory both in rental and single family row homes. No presale services were needed.
Strategy: Engage local investors, qualify them with a strong deposit requirement and sell to the highest bidder, in less than 45 days.
Marketing: 3'X3' sign on building 40 days prior. Highly targeted direct mail program to local investment property owners, in conjunction with a two week modest display ads in local weekly community publication, the regional citywide newspapers’ real estate and auction sections and an e-mail blast targeted to local Realtors.
Terms: By confidential reserve, $20,000 deposit, 10 % buyer’s premium, 30 day closing. No contingencies.
Type of auction: Live cry at site.
Outcome: Good attendance of local investors produced primarily by the direct mail program, with a few being Realtor represented.
Sold for $179,000.00 to a 1st time investor well in excess of reserve.
Property Type: 1700’s stone farmhouse structure. Zoned Multi Use within a commercial use overlay with a historical designation. Formerly a bar restaurant with dwelling above, on 1 ¼ acres. Highly visible moderately high traffic suburban community location. Estate Owned. Property had not been on the market in over 80 years and had not been listed prior to the auction marketing.
Condition: Closed in excess of 15 years. Building obsolete and in very poor repair.
Special circumstance: Owners also had a PA. LCB license that was in escrow with the State of PA. Such a license is personal property.
Pre sale services required: Review and evaluation of all contents of building, garage and grounds. Removal and delivery of items executrix wished to retain and placing other saleable items in appropriate sale venues. Retain and oversee clean out labor. In this case, 11 tons of refuse. Building was striped down to bare wood floors, washed, deodorized, and secured. Grounds were policed, 1 abandoned car and a large steel oil storage tank removed. Complete legal review of all pertinent ordinances, required permits and LCB requirements.
Strategy: Due to the multi use zoning and severability of the LCB license, engage as diverse of a bidder profile as possible by offering the property in a three stage bidding format that would allow bidders to bid: A. on the real estate alone, B. the LCB license alone, followed by, C. the two combined with bidding opening at 5% above the achieved total.
Marketing: Twin 8’ X 4’ full color signage with large banner on front of building 45 days prior. Extensive direct mail targeted to retail/office property investors and developers as well as private and corporate restaurant/bar operators over the entire Delaware Valley 45 days out from day of sale. Moderate regional newspaper display ads running alternatively through suburban and major market regional papers for 30 days. Large Google adword campaign. An extensive Bidder’s Information Package was prepared including all disclosures, ordinances LCB forms, photography, including aerial, demographics and highway statistics and made a available on line.
Public Relations: Having received so much interest during the early phase of property preparation, we engaged our public relations consultant to get the story out. Why had this property sat for over 15 years? Our PR agent produced multiple newspapers spots that resulted in letters to the editor- a radio interview 5 days prior to the event and TV coverage day of sale. PR makes people talk - and talk increases the perception of value of the property.
Terms: $10,000 deposit to bid increased to $25,000 for the LCB license, $100,000 for the real estate and $125,000 if combined, certified funds, check with bank letter of credit or electronically. 30 day closing. 10% Buyer’s Premium, reserve by seller’s acceptance. No contingencies.
Type of auction: Live on site with real time internet bidding and voice only webcasting.
Outcome: Due to the local interest, we held out a few antique bar items to hold a mini memorabilia auction to warm up the event. That and the PR produced a truly stunning turn out. We received strong pre-auction opening bids on both the real property and the LCB license that were not advanced. Once combined bidding was opened, seller’s acceptance was quickly received and surpassed by another 12%. Placing that bid on hold, we asked if there were any interest in reopening the bidding on the real estate alone in excess of the combined bid and receiving none, announced it sold in combination for $1,100,00.00 to a local deli owner represented by a Realtor, looking to expand his portfolio of restaurants.
Property Type: Suburban Southern New Jersey single family home, 4 bedroom, 2 ½ bath .41 wooded acre, cull du sac. Private Seller.
Property Condition: Excellent. All mechanicals excellent, all appliances included. Sited near Patco rail line and ready to move in. Property showed wonderfully. Property had been listed for an extended period with a local, national franchised Realtor generating little interest resulting in repeated retracted offers and contingency demands from a single party. Owner had already purchased another property and as a professional financial analyist, was aware that the single family market was starting towards what was about to become an all out crash.
Strategy: Remove contingencies, and attract alternative bidders.
Marketing: 1st class posted sign on property, extensive bandit signage, E-mail blasts to area Realtors, newsprint ads limited to local “free” merchandisers, extensive Google adword campaign and package of e-mail blast to opted in investors via various auction lists, listing on multiple auction listing sites both regional and national. 3 Pre - scheduled open houses and a complete Bidder’s Information Package available online.
Type of auction: Onsite live with live internet bidding available and voice only webcast.
Terms: 10% buyer’s premium, confidential reserve with a $200,000 opening bid, 10% high bidder deposit. No contingencies.
Outcome: Marketing produced new interest , great turnout at open houses and enough registered bidders to produce good bidding that achieved $235,000.00 from a cash buyer who would close the next week While a little short of his reserve, the seller quickly realized that it was to his advantage to accept on the spot.