About Our Auction Program
There are few companies such as Hanna Commercial who combine true real estate knowledge together with specialized real estate auction knowledge. This combination is what leads essentially to a retail price for property as opposed to a liquidated price obtainable by auction companies without a good real estate background. Our job in any case is to focus marketplace attention to the property while creating a competitive bidding environment to insure a maximum pricing for each asset offered. Our auctioneers share a combined 125+ years of real estate auction experience. Centralized at our corporate headquarters in Cleveland, OH, we also have satellite offices strategically positioned in Canton, OH, Charlotte, NC, and Hartford, CT.
While accelerated sales are a specialized area of real estate marketing they do offer a unique method of sale for owners who (1) are time sensitive; (2) are seeking to protect equity; or (3) wish to project a particular asset to a national real estate market to maximize value. Our Hanna Commercial Accelerated Marketing Programs are designed to maximize price for a particular asset or group of assets, while at that same time providing a predictable time of sale. We have been active in the sale of all types of real estate including office, industrial, retail, hospitality, historic/unique properties, income producing and new development residential.
Hanna Commercial has been able to fully integrate the specialty of real estate auctions along with our negotiated sales capabilities throughout North America. We can effectively implement a program in almost any location in the U.S. or Canada utilizing both the knowledge of our local commercial brokers and the global reach of TCN Worldwide. We find that our program of high profile brokerage services coupled with our wide exposure through a real estate auction brings more serious prospects and focuses more attention on valuable real estate assets than can be accomplished through traditional negotiated means. We have developed a database from our various accelerated real estate offerings that allows us to access thousands of serious prospects.
Auctions are a terrific platform for purchasing real estate as serious purchasers are connected with serious sellers in a fair and open bidding environment. Real Estate Auctions are exciting, easy to understand, and often lead to potential bargains that might not have been realized in a traditional negotiated offering. Below are a few helpful suggestions regarding proper procedure for participating in an upcoming Hanna Commercial Real Estate Auction Event.
Step One - Request an Auction Brochure
Once you find out about an upcoming Hanna Commercial Auction we encourage you to visit our website or contact our office to acquire the Auction Brochure available to you by mail or PDF download. The Auction Brochure will include important information and photographs about the real estate being offered in addition to instructions regarding your opportunity to preview the property. The Auction Brochure will also include the Auction Terms of Sale. You will want to carefully review this information which will include (1) Registration Procedure, (2) Requirements of the High Bidder, (3) Explain how the Property will be Offered, (4) Financing Opportunities, (5) Auction Day Cashier Check (Earnest Money) Requirements, (6) Bidder Packet Order Form, (7) Buyers Premium, and (8) other pertinent information regarding the sale.
Step Two - Preview the Property
The Auction Brochure will provide instructions regarding your opportunity to preview the property prior to the auction. Often, there are numerous pre-determined On-site Inspection dates and times beginning weeks before the auction. These On-site Inspections provide an excellent opportunity for you to inspect the real estate and meet our auction staff to answer any question you may have. We encourage you to bring any inspectors, contractors, or any other experts as you wish so that you can familiarize yourself with the real estate before auction day. It is important that the select dates and time are honored so not to disrupt any tenants, employees, or neighbors with unannounced and unexpected drop-ins.
Step Three - Acquire the Bidder Packet
The Bidder Packet is a complete due diligence packet that is a requirement for every bidder at the Auction to acquire. This extensive packet features valuable information regarding the offering often including extensive photographs, tax information, sources of financing, area information and property record cards, surveys and site maps, financial statements, copies of utility bills and repair receipts, environmental reports, detailed demographic reports, specimen copies of auction day Purchase and Sale Agreements and other pertinent information that will lead to an informed purchase on auction day. We advise you to acquire the Bidder packet early, and review with your attorney or other experts prior to auction day. The required Bidder Packets are typically available for a nominal charge to cover printing at any On-site Inspection or by mail for additional handling charge.
Step Four - Secure your Financing
If you wish to finance your auction day purchase it is important that you arrange your financing prior to auction day. You will be glad that had the ability to bid with confidence when achieving a commitment from your lender prior to the auction event. Many of our Auction offerings will provide either a recommended source of financing with lenders that are already familiar with the real estate and have the ability to lend to qualified purchasers or financing will be available from the seller with details provided in the Purchase and Sale Agreement featured in the require Bidder Packet.
Step Five - Attend the Auction
Registration typically will begin one hour before the Auction. You will be asked to show a photo ID and the Cashier's Check for the earnest money amount required for the property you plan to bid on, as listed in the Terms of Sale provided in the Auction Brochure. Upon meeting requirements to participate, you will be awarded a Bidder Card with a unique registration number you will use for bidding.
Before the Auction begins, the Auctioneer will make any Auction Day Announcements and introduce staff members or key personnel. The Terms of Sale will be reviewed and typically a "mock auction" is conducted, providing bidder with an opportunity to witness and participate in actual bidding before the real auction begins.
During the Auction, Bidder Assistants will be available to answer any questions you may have including the bid amount the Auctioneer is asking for if you are unsure. You can raise you Bidder Card high to place a bid, or have a Bidder Assistant to shout your bid for you. Remember, the Bidder Assistant is there to help and can usually get the Auctioneers attention before you can, providing you with an edge over competing bidders.
If you are a successful bidder, a bidder assistant will collect your bidder card, driver's license and Cashier's Check. If there are additional properties left in the auction, and you have additional Cashier's Checks in order to bid, then the Bidder Assistant can provide you with a new bidder card so you can continue bidding. If you are finished, then you may head to the designated contract waiting area, typically at the front of the room, and wait to sign the Purchase and Sales Agreement. Once called, you will be connected with a Contract Writer and will execute multiple copies of the Purchase and Sale Agreement that was provided to you in the Bidder Packet.
The majority of our TCN clients have been well-capitalized corporations, financial institutions, investment groups, and individuals. Their objectives have been to maximize value on certain real estate holdings while at the same time specifically planning the actual time when those properties will be sold and to also control the terms and conditions under which the properties will be put under a definitive agreement for sale. These professional real estate owners recognize that negotiated contracts frequently take many months to finalize an agreement. They are seeking non-contingent contracts that offer the expectation of obtaining the best possible price in a predetermined period of time. Our high profile real estate auction programs are accomplished in a forty-five to sixty day period, and bring prospects from a very wide geographic area. The effective use of an Accelerated
Sale would be best utilized in the following cases:
- The seller wishes to affect a sale in a particular fiscal quarter or calendar year.
- The seller is seeking to re-deploy capital assets or redistribute them to parties at interest.
- Certain unique, one-of-a-kind, properties have a seasonal window when purchasers will consider acquiring them.
- The seller requires a conspicuous sale in which equal opportunity is given to all interested parties to aggressively pursue acquisition. The question as to favoritism of selling to one party and not another is eliminated by the open nature of the auction offering.
- Buyers or Sellers have already entered into a Starker Exchange for an acquisition or disposition of assets, and they are in a time constraint to identify an exchange property and close during the required tax-filing period. The ready availability of certain real assets offered at auction allows them to immediately complete a tax-free exchange and justify market level valuation.
- The marketplace begins to discount the value of a property that is available for purchase for more than 120 days in a conventional negotiated sale.
- Purchasers are unsure as to the true value of a particular asset or wish to negotiate detailed purchase agreements with numerous contingencies. When these sales do not proceed, the marketing program for the subject asset must be restarted after many weeks or months have elapsed.