A Real Estate Auction...a New Experience for Many Agents in a Challenging Market!

On Saturday August 16, 2008 at the Hyatt Hotel at Bonaventure, Hudson and Marshall auctioned more than 250 properties in the Southeast Florida Area. I would guess that more than 300 people attended.

The process is very simple! I would say that the hardest thing is to follow the auctioneer who talks so fast that you really get to understand what he is saying after the 10^th property is auctioned.

How does it work?

Previous to the Auction:

• 30 days before the Auction the Buyer previews the property, performs inspections and makes sure his financing is in place.
• If the Buyer wants to make an offer prior to the Auction the Pre-Sale Auction Department must be contacted. 

Registration:

• On auction day buyers register for their bidder's number. They can be accompanied by a Broker who will normally receive a commission. It is unethical to go to the event just to register clients, some agents tried and H & M didn't allow them to do so.

Down Payment is 5%:

• Buyers must bring a $ 2,500.00 cashiers check or cash and the balance can be in the form of a personal or business check. 

The Bid:

•  Most of the bids are with Reserve; the Owner/Bank has the right to accept the highest bid or not after the auction ends. For example there was a property in Savanna @ Weston listed in the MLS for $ 325,000.00, the highest bid was $ 252,500.00. Today I contacted the agent to follow up and he said that the property is still available and that he doesn't think the bank will go for $ 252.500.00 because they have turned down better offers. I will keep an eye on this for future updates!
• Some banks have on site representatives and will be able to accept the highest bid price.
• If the auctioneer knows the reserve price he may say "absolute" once he knows the highest bid is higher than the reserve price.
• The final Purchase price will be the High Bid plus an additional 5% Buyer's Premium

 Contingencies:

• No contingencies on Financing, Appraisal or Inspections.
• Closing Date will be on before 30 days from the Date of Seller's Execution. Seller has the right to extend closing date if there is a title related issue and thay need more time to clear it. Seller will pay for Title Insurance. All propertis are sold free and clear of back taxes an liens.