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

By
Real Estate Agent with INES GARCIA/Avanti Way Realty

Auction Gabble

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 10th 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.

Comments (0)