Everything you wanted to know about a Real Estate and Condo Auction

By
Real Estate Agent with Keller Williams Success Realty BK3128229

In preparation for an upcoming Condominium Auction, I am pleased to provide the following Real estate Auction FAQ for Panama City real estate auctionmy visitors and customers. The auction information is deemed reliable but not guaranteed.

WHY AN AUCTION?

Sometimes a Seller will select an Auction method of marketing in an effort to accelerate the sales process for the sale of 1 or more Condominium Units. Often in an Auction, Buyers may be able to obtain Condominium Units offered at reasonable prices.

WHAT IS AN ABSOLUTE SALE AND SOLD SUBJECT TO THE SELLER'S APPROVAL ACTUALLY MEAN?

An Absolute sale refers to units being sold to the Highest Bidders regardless of Price - "No Minimums, No Reserves'. Sellers approval refers to Condominium Units which may be sold to the Highest Bidders however the sale is subject to the final approval and acceptance of the prices by the Seller.

ARE "AS IS" RESIDENTIAL CONTRACT'S FOR SALE AND PURCHASE CONTINGENT UPON FINANCING?

Not always. Sometimes Seller approved Purchase Agreements are not subject to a Buyer obtaining financing or any other contingencies such as post due diligence, inspections etc. The closings on the Condominium Units usually need to occur within several days of the original auction date.

ARE TITLE ASSURANCES PROVIDED TO BUYERS?

Often, the Seller will provide a Title Insurance Commitment and Policy for the auctioned Condominium Units insuring the title to be free and clear of all liens. The premium for the Title Insurance is often at the Buyer's expense.

IS THE INFORMATION PROVIDED IN BROCHURES, INTERNET AND NEWSPAPER ADS GUARANTEED?

Absolutely NOT! It is highly recommended that auction participants and buyers rely entirely on their own information, judgment and their inspection of the Condominium Units. Usually, an Auction Sales Office is available to schedule access for Buyers to inspect the Condominiums.

WHAT IS A 10% BUYER'S PREMIUM?

A Buyer's premium is basically a commission for the auction house.

For example: @ 10% - If an offer is $100,000.00, (example only), the Total Contract Price will be $110,000.00. If a Buyer wants to purchase a Condominium Unit at approximately $100,000.00, - bid $90,000.00 and the Total Contract price would be $99,000.00.

WHAT DOES IT MEAN TO BUY A CONDOMINIUM "AS IS"?

Condominium Units may be sold in their "As-Is' condition with all faults with no guarantees, warranties express or implied. Remember, Buyers must rely on their own inspection, judgment, records and own information as there is no post due diligence period.

Announcements from the Auction block will always take precedence over any previously printed advertising material or other oral statements made.

Remember: The auction information is deemed reliable but not guaranteed.

WHAT IS "HIGH BIDDER'S CHOICE"?

Condominium Units sold on a "High Bidder's Choice" concept means each unit type will be available on a "menu" for bidders' selection.

The first high bidder will have their choice to select which Condominium Unit(s) he/she wants to purchase.

An example would be that the first bidding round may end with a total bid price of $200,000.00 (example only). The Auctioneer will ask which Condominium Unit the winning bidder wants to purchase at the winning bid price. When the Bidder selects a specific Condominium Unit, it is crossed off the inventory and the remaining Condominium Units would be available on the "menu" for the next bidding round. If the high bidder wants two Condominium Units - it would be two (2) Condominium Units x $200,000.00 each or $400,000.00. Some auctions limit the number of Condominium Units a winning bidder can take on any given bidding round which encourages bidders to bid as high as they can, so their selected Condominium Unit won't be selected by another winning bidder.

ADDITIONAL INFORMATION:

A) All prospective bidders are encouraged to inspect the Condominium Units of which they have interest during the pre-auction period.

B) Bidders qualify to bid at an Auction, by providing a "proof of funds" document, usually in the form of a cashiers check made payable to a Title company who will be conducting the closing. Bidders interested in purchasing multiple units at the Auction, are usually required to bring the required cashiers checks for as many units they wish to purchase.

C) All bidders are encouraged to review any and all documents necessary for the transaction in any supplied Property Information Package (PIP)

D) Online Bidding is often available for real estate auctions.

If you require additional information on real estate and condominium auctions, contact Jennifer today!. Directly: (850 ) 774-6582.

 

 

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Welcome to our Panama City Beach real estate blog. Please share your thoughts and opinions as comments are always welcome, whether you are a consumer, journalist or another real estate professional.

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Posted by

Jennifer Mackay in Panama City

Jennifer Mackay
Panama City Realty Group
850-774-6582 Cell
PanamaCityRealtyGroup.com
Keller Williams Success Realty
309 Richard Jackson Blvd., Suite 200
Panama City Beach, Florida 32407

 

 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Jessie Cochran 06/02/2017 04:43 AM
Topic:
Local News and Events
Location:
Florida Bay County Panama City Beach
Tags:
real estate auction
panama city beach real estate auctions
panama city real estate agent jennifer mackay
panama city beach real estate agent jennifer mackay

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Ambassador
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Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I love representing people who purchase homes at auction. One must know what they are doing.

Jun 01, 2017 06:03 AM #1
Rainmaker
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Sandy Padula and Norm Padula, JD, GRI NMLS#1483386
Realty One - Carlsbad, CA
Presence, Persistence & Perseverance

Jennifer Mackay This is a great primer for those who do not know what and how auctions do and the rules involved. Great post!

Jun 01, 2017 06:48 AM #2
Rainmaker
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Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

What a great outline if what buyers can expect and what terms mean. I love auctions, and go to as many as i can. Have a good day Jennifer Mackay 

Jun 01, 2017 07:15 AM #3
Rainmaker
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Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Purchasing homes at auctions is definitely different than doing so via other methods. This is a good overview of the process.

Jun 17, 2017 04:52 AM #4
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Jeff Dowler
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Jennifer

Great educaton here for those interested in buying a house or condo at an auction - definitely a different animal!

Jeff

Jun 17, 2017 10:43 AM #5
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Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

This is packed with information and will be a value post for years to come, Jennifer.

Jun 17, 2017 08:25 PM #6
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Jennifer Mackay

Your Bay County Florida Realtor 850.774.6582
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