Where are J. P. King auctions held and what happens on sale day?
J. P. King events are held at the property being sold, though some are held at another location, such as a hotel ballroom. J. P. King staff will begin registering bidders approximately one to two hours before the scheduled auction time. You will be asked to show your cashier’s check, if required, and then you will receive a package of information about the property. After you are registered, you can enjoy refreshments, listen to live music and ask any questions you may have about the property or the J. P. King auction process. The bidding itself may last as little as a half hour for a single property or for several hours when multiple properties are being sold.
What will I need to bring to the auction?
For most J. P. King sales, you will need to bring a cashier’s check made out to yourself. The amount required will be located in the brochure or the Property Information Package (PIP). You may also call 800.558.5464.
What happens if I am the successful bidder?
Immediately after the event, you will pay a 10% non-refundable deposit and sign a contingency-free contract agreeing to close within 30 days. As you bid, remember that the actual sale price will usually include a buyer’s premium that is added to the high bid.
Can I make the contract contingent upon financing or inspections?
No, the auction contract is contingency-free. For this reason, it is very important that you finish your property evaluation and arrange any needed financing before the auction.
Will I be able to understand what’s going on during the auction?
Yes. Before the sale, we ordinarily auction an item for a charity or conduct a mock auction so that everyone can get a feel for the pace of the sale and the chant of the auctioneer. If you have a question during the sale itself, just ask one of the bid assistants, who will be positioned around the bidding floor. They’ll be delighted to help.
What if I want to be represented by a broker?
If you wish to be represented by a broker, he or she must complete the required broker registration form. This form is available from our Auction Information Center at 800.558.5464. In most cases, the broker must register with J. P. King 48 hours prior to the auction to qualify for a commission.
What are the advantages of a J. P. King Auction as opposed to an ordinary listing?
Practically all sellers desire to get their property sold more quickly. Beyond that, however, we hear numerous reasons, including these:
• To eliminate ongoing costs of ownership.
• To establish a market price on a property that has few comparables.
• To divide assets in the event of a death, divorce or other change.
• To free funds for other purposes, such as the purchase of another property.
What’s the difference between an absolute and a reserved auction?
In an absolute auction, the property sells to the highest bidder regardless of price. This type auction tends to get the best results, because it attracts the largest number of bidders. This type of auction is sometimes referred to as an “unreserved” auction.
In a reserve auction, the seller retains the right not to convey the property if the high bid is deemed unreasonably low. The reserve is usually not communicated. (Note: This type of sale is sometimes referred to as “subject to seller confirmation.”)
If somebody didn’t make an offer on a property when it was offered through an ordinary listing, why would he or she bid at auction?
The most common reason is that they never knew about the property before. The compressed time period for promoting an auction allows us to bring the property to the attention of far more people than would be possible in an open-ended campaign. Another common reason is that the property may have had an unrealistically high asking price. When an asking price is out of line with the true market value of a property, many buyers feel that there is no point in making a lower offer. With an auction, there is no asking price, so we don’t have that problem.