FAQ - John Bickel & Associates

John Bickel & Associates
Licensed Real Estate Brokers and Auctioneers AB2175/AU2433
Phone 239-369-3473 or E-Mail
Specializing in Southwest Florida Real Estate Auctions

Home Page How to Sell How to Register How to Buy(Bid) FAQ Auction Terms

Questions & Answers for Sellers: (Scroll down this page for Questions and Answers for Buyers)

Why should I consider selling my property using your online auction? Because it's by far the best way, and may be the ONLY way to actually get your property sold in a reasonable period of time. Thousands of properties are listed for sale, and very few of them sell on any given day. You need a way to attract attention to your particular property amidst all this confusion, and a way to convince would-be Buyers that you really want to sell it. That's an auction!

What will it cost me to sell my property on your online auction? Sellers pay a small percentage of the high bid on a successful sale as commission to the Auctioneers. This amount varies with the number and nature of properties offered by Sellers, and is deducted from the Seller's proceeds at settlement by the Title Company.

Wouldn't Ebay work better to sell my property? Unfortunately, no. Ebay is not licensed to sell real estate, only advertising for it. Even when possible to "bid" on property, the high bidder is considered to only have shown "serious interest" and urged to pursue further negotiations with the Seller. Various frauds and scams have plagued Ebay from it's inception preventing it from being taken seriously by bidders for real estate. Real estate is a local activity, best handled by local agencies.

How much can I expect my property to sell for? There's simply no way to tell in advance! Competitive bidding in an open public forum, namely an "auction" is always the best method to reveal the true "market value" of the property. Realtor guesses at 'Listing Prices" and appraisals are all inherently flawed, and are only "opinions of value," the actual definition of an appraisal. At auction, Sellers set the terms, Buyers set the price.

I own properties in several counties, can you accept them for auction? Yes, we can accept properties anywhere in the state of Florida.

Can I list a house or commercial building on your online auctions? Yes, email or call for details.

Do you also do live auctions? Yes. Expect to see foreclosed properties, as well as "REO's" (Bank real-estate-owned) becoming more frequent throughout 2008. The advantage to the Seller is getting the property sold and off the books, even if it means taking a loss. We offer full "Property Preservation" services and a "turn-key" solution for such properties including maintenance, repair, staging, previews conducted by auction staff, and extensive local and Internet advertising, all leading up to auction day when the property sells. Multi-property auctions, all conducted on the same day, offer a quick solution to builders, banks, and investors to quickly dispose of stagnant properties at the highest price the market will bear at the least possible cost.

Who pays the closing costs? Buyers pay all "normal" closing costs, including state transfer tax (stamps on the deed), Title Company charges for Title Insurance, Recording Fees, etc. Other than normal costs, for example, if the Seller's deed needs to be corrected before transfer, would of course be charged to the Seller.

If the bid isn't high enough, do I have to sell to the high bidder? No. This would be the case with an "Absolute Auction," where the Seller guarantees acceptance of the high bid no matter how low. Our auctions are "With Reserve" to protect Sellers from ridiculously low bids. Almost all real estate auctions are conducted this way. We help Sellers to set realistic "Reserve Prices" that we feel both protect the Seller, and offer Buyers a chance to buy at "Fair Market Value."

What is "Fair Market Value"? "The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently, and knowledgeably and assuming the price is not affected by undue stimulus." Quoted from the Florida Real Estate Broker's Guide. Notice how easily the word "auction" could be substituted for the phrase "competitive and open market."

What should I think about the "Tax Value" placed on my property by the Lee County Property Appraiser? Chances are, even though it's called 'market value," many lots will not sell in today's market for anywhere near the "Market Assessed Value." This is because the Property Appraiser is mandated to use last year's pricing as a guideline to establish this year's values, and last year's prices reached unrealistic highs. This disparity will correct itself as supply and demand take over.

What's the difference between a "conventional listing" and an auction? An auction implies a serious seller at "fair market value" on "date certain," stimulating immediate interest in the pool of prospective buyers. The eventual selling price bids up, rather than down. Listings tend to be extremely slow by comparison, and often end up as essentially one-bid auctions, with the listing agent pressuring the seller to "take the only offer." Any auctioneer will ask "Do you want to list or sell it?"

When is the best time to sell? It depends on your goals more than "market conditions." No one can predict the lows and highs of any volatile market. The best time for you to sell is as soon as possible after you decide to.

How do I sell a lot that I inherited? You need to establish rightful ownership in your name. Just paying the taxes in your name is not good enough to show ownership, and right to transfer. Depending on the circumstances, you may need to hire a Florida-Licensed attorney to file for an "Ancillary Administration." This is a legal process to clear your title. The best way to determine how to proceed is to contact an attorney or Title company and have them check the ownership status. We can recommend attorneys and Title companies familiar with these procedures. If the lot was "deeded" to you, you probably don't need to do anything, but it pays to check first.

What's up with the "offers" I get in the mail? If it's old, trash it. If it's new, is it an offer to list, or an offer to buy? Offers to list are useless. There are already thousands of lots "listed" that aren't selling at unrealistic promises. If it's an offer to buy, it's either an outright scam of some form, (there are several running) or at best an effort for someone else to take away money that rightfully belongs to you. If you think you have a legitimate offer to buy, we suggest putting the lot up for auction. Let them bid against everyone else. Let's see how bad they really want it!

Scam Alert! Mass mailings continue to hit Lehigh Acres lot owners with a "cash offer on your land." These schemes attempt to tie your lot up in a sale contract calling for a 60 day close. This is an old scam that works like this: If the "offeror" can turn around and sell it for a higher price within that 60 day period, then they will actually close on your contract. It's called a "double escrow close," and is simply a means of profiting on your lack of knowledge. If they can't sell it, then a fine-print "weasel clause" in your contract allows them to escape closing on your contract, typically something like "subject to inspection." Either way, you lose. You either don't get "fair market value" for your land, or nothing at all.

What is happening in the market for vacant land? Prices have adjusted downward from the 2005 highs to "real values," as a function of the basic economic principles of "supply and demand." Much vacant land was way undervalued only a few years ago, and as astute buyers realized the imbalance, they bought in, and that disparity was promptly corrected. However, once prices reached realistic levels, the even more powerful forces of "fear and greed" entered the market, leading to a "speculative bubble." Greed pushed asking prices to levels where Fear finally took hold, and the market simply stopped, almost overnight. Remember dotcom? Think dotland! This sort of phenomenon is nothing new, and was expertly documented in 1841 by Charles McKay in his book, "Extraordinary Popular Delusions and the Madness of Crowds." Yes, 1841, not 1941.

Why do I need to register for bidding? Registration qualifies you as a legitimate bidder. Just click on the "Register" button on the REIAuctions webpage and fill out the simple form.

Is financing available? Maybe, but not from the auction company. You may be able to arrange lot financing on your own with either a financial institution or a private lender. However, there is an attractive option specifically aimed at those who intend to build a new home. Once you own a lot, you can use that lot as a down payment for a new construction loan backed by the US Rural Housing Agency of the US Dept. of Agriculture. Such loans are available in Lehigh Acres. They are up to 30 year, fixed-rate mortgage loans with minimum application and insurance fees included in the loan. Contact Herb Lenchner, Flagship Mortgage Banc, Inc. 12681 New Brittany Blvd., Fort Myers, FL 33907. Phone 800-433-6073 or 239-936-4232 or Email to: hlenchner41@yahoo.com

How do I know I'm bidding against real bidders over the Internet? We have security features, invisible to the public, running in the background to prevent phony bids. We have never permitted "shill bids" at any of our auctions. Not only is it illegal, it isn't good business practice. The REIAuctions system even prevents us from bidding on our own listings!

Can I pick the Title Company I want to close the transaction? Yes, with one exception. For efficient handling of Lehigh Lots, all Lehigh Acres lot transactions are referred to Aaccurate Title Services of SWFL, LLC, 403 Joan Ave. N., Suite B, Lehigh Acres, FL 33971, Phone: 239-369-0363, Fax: 239-369-0364, for final settlement. Transactions may be closed entirely by mail. It is not necessary to personally appear at the Title Company.

Will you be holding live auctions for single-family houses? Yes. We will be holding live auctions on-site, often selling multiple properties same day.

Why should I consider buying a house at your auctions? Because you will get the most value at the least cost. Many conventionally listed houses are still in "dreamland" territory. It's understandably difficult for both Sellers and Realtors to accept that the 2005 prices have no bearing whatsoever in today's market. Any house is only worth whatever the highest bidder is willing to pay. Old list prices have no bearing whatsoever on present values. Instead of trying to continuously adjust unrealistic list prices downward (how often are you seeing "price-reduced-for-quick-sale?) at auction, the property bids up to its maximum value, whatever that may be. You only need to pay one bid higher than anyone else in attendance is willing to pay. If you want to buy a house to live in, you can't afford to miss our auctions!

Must I buy Title Insurance? If you are obtaining financing, the financing institution will require it. We highly recommend it to insure that you are getting "clear title" to the property. The underwriting insurance company will research the "chain of title" to the property before they insure it. This process will reveal any defects in the Seller's title and/or their legal right to convey title. We recommend choosing a title company local to the property, i.e. in the same county.

What is a "Buyer Premium"? This is an additional fee, usually a percentage of the high bid. It is simply a tool and is typical of auction sales. It is not, contrary to common belief, necessarily the Auctioneer's commission.

Where can I get a map showing the area(s) I'm interested in? Check with the local Chamber of Commerce. For Lehigh Acres, the Chamber of Commerce sells a detailed color map for $3.25. They are located at 4109 Lee Blvd, Lehigh Acres, FL , 33971. Phone 239-369-3322. Maps may also be mail-ordered from the Chamber for $4.00 postage-paid first-class mail. One useful source of Topographic maps of the whole state is the "Florida Atlas & Gazetteer" published by DeLorme, available at Wal-Mart, book and office supply stores for $20.

What is a STRAP number? STRAP is an acronym for Section, Township, Range, Area, Parcel. It is a "Parcel ID Number" that identifies the location of a particular platted parcel of land. The entire state of Florida is divided up into Townships and Ranges. Each Township/Range is six miles square (six miles on a side) and each Township/Range is divided into 36 "Sections," each Section being a one-mile square. Each county has it's own way of creating "Parcel ID" numbers, and the sequence may vary. In Lee County, the first six digits of a STRAP number, for example 21-45-27 mean Section 21, Township 45, Range 27. Almost all of Lehigh Acres is covered by four Township/Ranges (Quadrants). After the first two digits for the section number, the next four digits of the STRAP number tell you which Quadrant. 44-26 is the Northwest Quadrant. 44-27 is the Northeast Quadrant. 45-26 is the Southwest Quadrant. 45-27 is the Southeast Quadrant. It pays to know your STRAP number when telephoning County authorities with questions about a particular parcel, because it's the first thing they will ask you for.

I see Canals on Lehigh Acres plats and maps, but there's no water in some of them. What's up with that? Those "canals" were created for drainage when Lehigh Acres was platted out long ago. Some will only have water during the summer rainy season. We think all canals will eventually hold water year-round.

Do the Canals go anywhere? The canal system connects to the Caloosahatchee river for drainage, but not for navigation. However, miles of canals are useable by canoes, kayaks, Jon-boats and the like for recreation and fishing.

Should I sell, or buy? Sell for the short term if you have the need to place the money elsewhere. Buy for the long-term if you need a safe place to store money. Vacant land has long-term advantages. Holding costs are relatively low. No one can steal it. You don't need to insure it. You don't need to maintain it. It will rise in real value over time, as real estate always has. There's no point in waiting for the market to move in either direction at this time because we've reached a level of "real values" that will move very slowly upward for what you might call the mid-term. Right now, there are plenty of Sellers. That's the time to buy - when most people want to sell.

Huge Land Auctions! Watch out for phony auctions attempting to "flip" lots that are either owned by an out-of-state auction company or under "contracts to buy" from the original owners. If the auction company is representing themselves, rather than as an agent for the owner, you may find yourself bidding against the auctioneer, rather than another legitimate bidder. Other giveaways that something is fishy are excessive "document preparation fees," financing at credit card interest rates, title company owned by the auction company or affiliate, no guarantee of title defects or transfer by quitclaim deed, no title insurance, and up to six months to get a deed.

Who is John Bickel & Associates? We are a Florida State Licensed Real Estate Brokerage and Auction Company. We've been specializing in live auction sales of vacant land, particularly Lehigh Acres, and throughout Lee County, as well as sixteen other Florida counties, since 2000. Our live auctions have been attended by as many as 300 registered bidders, and have often been featured in local newspaper stories, as well as on-site television coverage. We have worked closely with both individuals and institutional sellers and investors, and maintain an extensive list of known land buyers. Our online auction service started in 2007 as an addition to our live auctions. We believe that the time for the online format has arrived, that it will produce more bids for sellers, and will be much more convenient for buyers.

John Bickel & Associates
Florida State Licensed Real Estate Brokers and Auctioneers- AB2175/ AU2433

Members: National Association of Realtors, Florida Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, Inc., Florida Auctioneers Association, and the National Auctioneers Association