Combination real estate auction and short sale

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How do you keep a buyer's feet held to the purchase contract on a short sale when it can take forever to get bank approval on the deal? Through an auction contract that has no contingencies for financing or repairs and requires a hefty non-refundable deposit.  We just closed yesterday on yet another auction/short-sale.  There were 5 competing bidders at the auction and the buyer remained in the deal through plenty of dramatic ups and downs due to a non-refundable deposit.  According to two separate appraisals prior to closing, the auction achieved 98% of current market value. The short sale was approved in 10 days as the bank liked the idea that the final purchase price was achieved through competitive bidding rather than just one buyer stepping forward with a low offer.  Buyer and seller are happily moving forward in life.  And the referring agent and buyer agent are heading to the bank with their quick commission checks.  I love auctions!

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Comments (2)

John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hi Sarah, this is an excellent idea, I will explore the idea selling homes through auctions.

John Pusa

Sep 23, 2009 09:59 AM
Jason Graves
Linda Craft & Team - Raleigh, NC

I can't help it... I still get a pit in my stomach when I think of auctions! I have so entrenched in this traditional model it's hard to do it any other way! We have spoken in the past and I have referred business to you. I look forward to our paths crossing again!

Dec 29, 2009 07:48 AM