{"id":2944,"date":"2017-05-12T08:51:55","date_gmt":"2017-05-12T12:51:55","guid":{"rendered":"http:\/\/dankrell.com\/blog\/?p=2944"},"modified":"2017-05-12T08:51:55","modified_gmt":"2017-05-12T12:51:55","slug":"real-estate-auction-home-buying-selling","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2017\/05\/12\/real-estate-auction-home-buying-selling\/","title":{"rendered":"Real estate auction home buying and selling"},"content":{"rendered":"
\"real<\/a>
Real estate auction (infographic from warwickauctions.co.uk via visual.ly)<\/figcaption><\/figure>\n

As the housing market continues to grow, buying and selling homes through the real estate auction is becoming more popular.\u00a0 Contrary to popular belief, real estate auctions are not just for distressed properties.\u00a0 Being part of a real estate auction can be exciting, but it’s not for everyone.\u00a0 There are pros and cons for both the home buyer and seller.<\/p>\n

A real estate auction is traditionally a \u201clive\u201d auction performed at a designated place where the bidders and auctioneer meet to conduct the auction.\u00a0 You must be present, or have a proxy present, to make your bid.\u00a0 You must register to bid at the auction, usually presenting proof of funds for your deposit.\u00a0 The pace of the live auction can be very quick, so you have to pay close attention to the action.<\/p>\n

Another form of real estate auction that has blossomed out of the foreclosure crisis, is the online auction<\/a>.\u00a0 The online real estate auction allows many homes to be auctioned simultaneously.\u00a0 The atmosphere and pace of an online auction is different from a live auction.\u00a0 Of course, buyers can make their bid from virtually anywhere, and the bidding can take place over days or weeks.<\/p>\n

If you want to sell your home via real estate auction, the benefits include: decreasing your homes time on market; you know when the home will sell; the home sells \u201cas-is;\u201d home buyer contingencies are typically few or none.\u00a0 The National Association of Realtors (nar.realtor) auction information describes homes that are good prospects (What Properties are Suited<\/a> for Auction?) , which include: homes with a lot of equity; unique homes; vacant homes; and homes that are difficult to appraise.<\/p>\n

However, real estate auctions are not for all sellers<\/a>.\u00a0 The downside to the auction is that your home may not sell, especially if you place a reserve (seller reserves the right to accept or reject highest bid) on the auction.\u00a0 There are also costs that typically include the auctioneer\u2019s commission and advertising costs, which could be due even if the home does not sell.<\/p>\n

If you\u2019re a home buyer, a real estate auction offers benefits for you too.\u00a0 Real estate auctions offer another avenue to purchase homes<\/a> other than those listed in the MLS.\u00a0 This can be attractive especially when there is limited inventory of homes for sale.\u00a0 Buyers guide the sale price through their bidding.\u00a0 Unless it\u2019s a blind bid auction (where bids are not disclosed to other bidders), you can decide if you want to increase your bid based on others’ bids.<\/p>\n

If you want to buy a home at auction, do your due diligence<\/a>.\u00a0 Read the terms of sale, there may be a minimum bid, minimum deposit, and even a buyer\u2019s premium (which can be as high as 5 percent of sale price) and other fees that may be due at closing.\u00a0 Check the auction schedule frequently because the date and time may change, or the auction can be cancelled.\u00a0 Understand the type of auction you\u2019re bidding in, because you may not get the home even if you\u2019re the highest bidder (especially online auctions).\u00a0 Inspecting the property may be a challenge as you may have limited access.<\/p>\n

Hire a Realtor to help you buy a home at a real estate auction<\/h3>\n

Hire a Realtor<\/a> to assist and guide you through the details of buying a home via real estate auction.\u00a0 Your agent can help you get the terms of sale and any due diligence material the auctioneer provides.\u00a0 Additionally, they can also provide comps for the property to help you decide on your bidding strategy.\u00a0 If you have the winning bid, your agent can help you with the details of getting you to settlement by assisting with contracts, financing, and other aspects of the sale.<\/p>\n

From the National Association of Realtors<\/a> auction section:<\/p>\n

\n

BENEFITS TO THE SELLER:
\n-Buyers come prepared to buy
\n-Quick disposal reduces long-term carrying costs, including taxes & maintenance
\n-Assurance that property will be sold at true market value
\n-Exposes the property to a large number of pre-qualified prospects
\n-Accelerates the sale
\n-Creates competition among buyers\u2014auction price can exceed the price of a negotiated sale
\n-Requires potential buyers to pre-qualify for financing
\n-The seller knows exactly when the property will sell
\n-Eliminates numerous and unscheduled showings
\n-Takes the seller out of the negotiation process
\n-Ensures an aggressive marketing program that increases interest and visibility<\/p>\n

BENEFITS TO THE BUYER:<\/p>\n

Smart investments are made as properties are usually purchased at fair market value through competitive bidding
\n-The buyer knows the seller is committed to sell
\n-In multi-property auctions the buyer sees many offerings in the same place at the same time
\n-Buyers determine the purchase price
\n-Auctions eliminate long negotiation periods
\n-Auctions reduce time to purchase property
\n-Purchasing and closing dates are known
\n-Buyers know they are competing fairly and on the same terms as all other buyers
\n-Buyers receive comprehensive information on property via due diligence packet<\/p>\n<\/blockquote>\n

Copyright\u00a9 Dan Krell
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\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

As the housing market continues to grow, buying and selling homes through the real estate auction is becoming more popular.\u00a0 Contrary to popular belief, real estate auctions are not just for distressed properties.\u00a0 Being part of a real estate auction can be exciting, but it’s not for everyone.\u00a0 There are pros and cons for both … <\/p>\n

Continue reading “Real estate auction home buying and selling”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[270,3,1012,382,8,405,13,77],"tags":[519,490,511,912,794,797],"class_list":["post-2944","post","type-post","status-publish","format-standard","hentry","category-home-buyer","category-home-buyer-tips","category-home-buying","category-home-seller","category-home-seller-tips","category-homebuyer","category-real-estate","category-real-estate-auction","tag-auction","tag-home-buyer-2","tag-home-buying-process","tag-home-seller","tag-home-seller-tips","tag-real-estate"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p1VZLf-Lu","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2944","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/comments?post=2944"}],"version-history":[{"count":6,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2944\/revisions"}],"predecessor-version":[{"id":2951,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/posts\/2944\/revisions\/2951"}],"wp:attachment":[{"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/media?parent=2944"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/categories?post=2944"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dankrell.com\/blog\/wp-json\/wp\/v2\/tags?post=2944"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}