The sellers commission is the fee charge to the seller by the auction company for their services. This fee is usually a percentage of the sale price. The buyer premium is the fee added to the auction price to determine the final contact price. The Buyers Premium may be a percentage of the auction price …
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An “absolute” auction (without reserve) means that the property is sold to the highest bidder, regardless of price. A “reserve” auction (subject to confirmation) gives the seller the right to confirm the high bid at the conclusion of the sale. Unless advertised as “absolute” and disclosed in the auction Terms and Conditions of Sale, auctions …
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The sale is administered based on the Terms and Conditions of Sale of the auction. The Terms and Conditions of Sale provide information on the required deposit, closing date, etc. All bidders should become familiar with the Terms and Conditions of Sale prior to the auction. Note that at an auction sale, any announcements made …
Although not used in all regions or at all auctions, a buyer’s premium may be added to the high bid to reach the final sale price. The buyer’s premium is a percentage or an amount added to the high bid to determine the total purchase price to be paid by the buyer. For example, if …
Read moreIs the high bid always the total amount paid for the property?
Typically a property is open for inspection during a series of open houses. Some sellers may choose to show properties by appointment only. Representatives for the Auction Company are on hand toanswer question about the property and/or the auction process. Specific information will be available in the auction brochure, the property information packet (PIP) and …
The material defects of a property, known to the Auctioneer prior to the auction, will be disclosed to all bidders. However, at a real estate auction, the Auctioneer makes no representations, guarantees or warranties as to the property’s condition. The property is sold in whatever condition it is in the day of the auction. Buyers …
Read moreWhat does it mean when property is sold in “As-Is” condition?
One advantage of the auction process for real estate is the benefits of a customized marketing plan. The property is exposed to the widest possible buyer audience, increasing the possibility of a successful sale at the highest possible price. Using an auction marketing campaign, the property will usually be marketed separately, differentiating it from other …
The goal of a successful auction is to generate the highest possible sale price for the property in the shortest amount of time. The ideal auction seller is a seller that is interested in completing the sales process promptly without waiting to the market to finally recognize their property and then negotiate a sales price. …
It is common that a property listed traditionally is unrealistically priced. When an asking price does not represent the current market value of a property, buyers are reluctant to make a lower offer. With an auction, there is no asking price so that problem is eliminated. In addition, the short time period for promoting a …
Selling real estate at auction allows the seller to take control of the marketing process and establish the terms of the sale. The property is sold on the seller’s time schedule, not the buyer’s. The Seller is “selling” and the buyer is “Buying” a real estate property in “As-Is” condition so there is no negotiation …
Read moreWhat are the advantages of selling real estate at auction?