This morning I was going through the mail and saw the new In Contract magazine that comes to the brokerage.  The first thing I usually do is look at the upcoming educational courses for things I want to attend or to suggest to my agents.

Next month an agent and attorney are holding a 3 hour CE on the Realtor - Auctioneer relationship.  Great.  Agents and auctioneer working together is a good thing and the more the agents know about the process, the more comfortable their buyers will be when they bid.

One of the main questions I get at our auctions from agents is how they are going to get paid when they represent a buyer.  While I'd prefer this question were a little farther down on their list, it is a great question.  The process can differ depending on the auctioneer, but the general principals are the same as in a traditional transaction.  For the most part, all an agent needs to do is fully represent their buyers interests throughout the process by actively participating in the four main steps.

Pre-Registration (aka establishing the agency relationship) - Some auctioneers require an agent to pre-register the buyer on the auctioneers registration form.

Attending the Preview (aka showing the property) - Most properties are available for preview or inspection.  More times than not, this is where the prospective buyer will get a copy of the terms and conditions and start to ask questions.  Auctioneers are generally an exclusive agent of the seller, therefore can't represent the interest of the buyer.  It is very important for the agent to be involved at this point.

Attend the Auction (aka preparing the offer) - Counseling the buyer at the time of purchase, explaining the process and contract are an extremely important parts of the buyer agents responsibility. 

Attend the Closing (aka attending the closing) - In the final part of the process, the buyer may still have questions.

Please feel free to contact me with any questions you may have about the auction process at 614-885-0020 x 17.

Rich

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com)  The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Ohio Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.