This information is intended to be of a general educational nature, and it is not to be construed as the official policies, terms, and conditions of any auction.

HOW TO BUY

Open Houses/Showings

All properties are available for viewing at Open Houses, and many are available for private showings. Contact the property's listing agent to find out dates and times.

Bidding

Step 1 - Register to Bid

To bid, you must first register on the site. Registration is free and quick. Register Now. No credit card or deposit is required to register or bid.

Step 2 - Place a Bid

The Bidding section is at the bottom of each property detail page. It displays the Current Bid and the Bid Increment. Some properties also specify a Buy Now price. To purchase at the Buy Now price, simply click on the Buy Now button. Or to place a bid, enter in to the box labeled Your Bid, the maximum amount you are willing to pay to purchase this property. The Elite Property Auctions system will continually compare your bid to the then-current high bid and will place bids on your behalf, just one increment higher to maintain your high bid position, up to your maximum amount.

Dynamic Bidding

Elite Property Auctions utilize Dynamic Bidding, which will automatically extend the ending time of an auction by 20 minutes if a bid is placed within an hour of the scheduled ending time. This is designed to prevent "sniping", in which bidders wait until the last second to place their bid to prevent other bidders from responding.

Purchasing

For EasyBid Auctions, if you win the auction, you will then submit a standard Hawaii Association of Realtor's Purchase Contract, complete with any desired contingencies (financing, inspection, etc.). You may be represented by a Hawaii licensed real estate agent of your choice at no additional cost. Elite does not charge a Buyer Premium or Transaction Fee. Sellers may accept, reject, or negotiate any bid made, just as with any other offer. There is no agreement to sell until the Purchase Contract has been executed by both parties.

For non-EasyBid Auctions, see the property information for details. Non-EasyBid Auctions typically require the high bidder to purchase the property on an "as-is, where-is, and with all faults" basis, with no contingencies.

HOW TO SELL

Appropriate Properties

In order for a real estate auction to be successful,

  1. The property needs to be one that will appeal to multiple buyers.
  2. The minimum bid needs to be significantly below market value.
  3. You must be willing to sell for a bit below Fair Market Value. People bid at auction so they can get a bargain, so if you have a Reserve Price, it has to be at least 10% below your previous listing price and be below Fair Market Value.
  4. The auction needs to be aggressively marketed to generate interest (we'll take care of that!)

Benefits to Sellers

By combining the best of traditional real estate brokerage with online bidding technology, in just a few weeks, we can generate dozens of bids from interested buyers.

  • You get all the benefits and expert marketing of an Elite listing with a dedicated Elite Realtor.
  • We carry out an aggressive sales and marketing campaign. Combined with the low starting bid, we will generate local and national attention for your property.
  • The urgency of a specific date forces buyers to act instead of waiting.
  • We pay a full cooperating broker commission, so other Realtors encourage their clients to bid.
  • Online bidding is quick and easy for the buyers, removing one of the major barriers of traditional real estate transactions.
  • You should get close to true market value due to multiple motivated, competitive, simultaneous bidders.
  • You are not obligated to accept any bid you don't like. The high bidder submits a standard Purchase Contract, just like any other offer. There's no risk!
  • Eliminate the lengthy ordeal and high carrying costs of typical real estate sales. Free up capital for other uses
  • No need to keep your home perfect for six months or more.
  • You will have a substantial savings compared to the traditional real estate commission.

Listing Agreement

All properties must be listed for sale by an Elite agent, or co-listed by another brokerage firm and Elite. No For Sale By Owner (FSBO) properties are allowed. If you are currently listed with another firm, please ask your agent to contact Elite to discuss selling your property through an Elite Auction. We can work with your existing agent, and it should not result in any increased commission or cost to you. If you are not currently listed with another firm, please call us at (808) 589-2040 to speak with an Elite agent. Your Elite agent will help to determine your Minimum Bid amount, Buy Now price, and beginning and ending dates for bidding.

Traditional Offers

All EasyBid properties are also listed on the MLS system, and buyers may submit a purchase offer outside of the online auction.

Contingencies

EasyBid Auctions: The high bidder will submit a standard Hawaii Association of Realtors Purchase Contract just as with any other purchase offer. Their Purchase Contract will specify any terms or contingencies, and you may negotiate the proposed terms and contingencies. If you are not able to reach agreement with the high bidder, your Elite agent can always contact the next highest bidder and offer the property to them at the same price.

Non-EasyBid Auctions: Terms and Conditions can vary, and your Elite agent can advise you on what is best.

REAL ESTATE AUCTIONS

Real estate auctions are the fastest growing part of the $271 billion auction industry. In 2007, over $58 billion worth of real estate was sold by auction in the US, up 39% over 2003. Auctions are rapidly gaining acceptance from all sectors of the industry, including buyers, sellers, agents, and lenders. Because auctions are more efficient and effective for both buyers and sellers, this trend is expected to continue. In fact, the National Association of Realtors forecasts that 30% of all US real estate transactions will be sold by auction by 2010; in Australia and New Zealand, the majority of homes are already sold by auction.

AUCTION TERMINOLOGY

Minimum Bid

This is the starting bid amount. No bids are accepted below this amount.

Reserve

A "reserve" means that the seller "reserves the right" to accept or reject a high bid that is below an undisclosed amount. All EasyBid auctions are effectively reserve auctions, because the seller always has the right to accept, negotiate, or reject any high bid.

Absolute

This is the opposite of the Reserve. The high bidder wins the auction regardless of the price. An Absolute Auction may have a Minimum Bid or may start at zero.

Bid Increment

This is the minimum amount by which a new bid must exceed the current bid.

Open Outcry

This is the traditional live auction, with an auctioneer chanting, and bidders in the audience raising their hands to bid against one another. Typically, bidders must bring a cashier's check to bid and must close on the purchase within 30 days; no contingencies are allowed; and in some cases, the buyer may have to pay a "Buyer Premium" of 6-12% in addition to the winning bid amount. Sellers are obligated to accept the winning bid unless they have established a Reserve which was not met.

Combination Auction

An online auction precedes a live auction, and the high bidder(s) from the online auction are entered in the live auction.

Multi-Parcel Auction

When 2 or more parcels are being sold, they are auctioned off individually, and then in various combinations. The bid or bids that results in the highest final price is the winning bid.

Sealed Bid

Similar to an Open Outcry except that bidders submit a single written bid that no one else sees. This can be beneficial when a limited number of bidders are expected.

Online

An online auction works the same way as an Open Outcry auction, but all of the bidding is handled by the computer system. This allows bidders to participate from anywhere in the world, and also allows the computer to automate the re-bidding process.

EasyBid

EasyBid is unique to Elite Property Auctions. We have taken all the benefits of an auction, and taken away the biggest objections. That means we make it quick and easy for buyers to register and bid, and let them keep their contingency rights. And we make it easy and inexpensive for sellers, and let them reject any offer they don't like.