AUCTION INFORMATION
Buying a Home at a Public Real Estate Auction
Posted By - Gregory Goff - 2 days ago 557 comments
Buying a home at a public real estate auction... You just picked up the weekly newspaper and noticed what might be the perfect home you've been searching for, however it's going to be offered at auction within the next two weeks. What do you do? First and foremost, if you're buying using financing, make sure your lender understands the home you are looking at. Auctions are not contingent on financing, appraisal or inspections. In other words, if you buy, you normally close on or before 30 days from the date of auction. Second: Know what you're buying. You don't get to change your mind after you buy at auction. If you are paying cash and no financing is involved, you need to do your homework on the home and location to make sure before the auction this is the home for you. Once again, the sale is not contingent on anything and you must close on the home if you are the winning bidder. Auctions are just about always going to require larger down payments day of sale. This is to protect the auction company and seller from buyer default. For instance, if you are the winning bidder on a $100,000 home and the sale terms state 10% down payment day of sale, you must have $10,000 that day to put down. That money is held in escrow by the auction company until closing. When you close on the home, you are credited $10,000 toward the purchase price. However, if the buyer defaults, the $10,000 is usually dispersed to the seller minus any auction expenses. You can hire a real estate agent to represent you during the buying process, however most auction companies and sellers do not pay compensation to a buyer's agent. Some auctions will advertise buyer broker participation but special regulations will apply. Most buyer agents will want you to sign a buyer's agreement agreeing to pay them a commission if you buy a home. This agreement will also apply to "for sale by owner" or "auction" properties. One final note, homes at auction are offered "with reserve" or "absolute". Absolute means the home is selling to the highest bidder, where the seller may not withdraw the property from the auction after the auctioneer calls for bids unless no bid is made in a reasonable time, where the seller may not bid himself or through an agent, and where the seller will deliver marketable title. Absolute usually draws a larger crowd which in turn usually means a higher selling price. An auction with reserve is an auction at which the seller or his agent reserves the right to establish a minimum bid, to accept or reject any and all bids, and to withdraw the property at any time prior to the completion of the sale by the auctioneer. Also be aware if the auction includes a buyer's premium and the percentage. Buyer's Premium - Buyer pays an extra amount of money (usually a percentage) to the auctioneer. The amount and date must be advertised in advance. Auctions are a great way to purchase a home or investment property. Being an educated auction buyer will lead to an easy transaction with no surprises. Gregory Goff, AUCTIONEER EXIT Realty Bob Lamb Auction Division Firm #5515 www.TheAuctionDivision.com If you have other questions or concerns, you can contact me at: (615) 653-0080 or email: ExitRealty@GregoryGoff.com


Tis' the Season for Auctions - EXIT Realty Auction Division
Posted By - Gregory Goff - 2 days ago 561 comments

Normally during the dead of winter most people are just trying to stay warm and on the outlook for snow. As an auctioneer, we're on the outlook for new business. February through May is the best season for auctions. Many people have cabin fever and are looking for something to do. Also, tax returns are coming in and people have money to spend. Estate auctions do very well this time of year because they are attractive to people looking for bargains. However, the more people that attend an auction, the less bargains there are to be had. It's a simple concept really. Imagine going to a store and they only have one of the item you are wanting and there are 3 other people also wanting that same item. What happens? At the store, it's first come, first serve. At an auction, we allow those 4 people to submit their highest bid. When you allow competitive bidding on an item, price goes up! It's demand versus supply. Granted not every items is going to have 4 bidders. That's when the bargain comes into the equation. If only one person is interested in a particular item, then of course that item will bring less.

As a professional auction company with EXIT Realty, our primary goal is to attract as many people as possible to an auction through specialized advertising. We focus our marketing on past auction attendees and drawing the local residents. Auction advertising is extremely focused and targeted. With usually less than 30 days to market an auction, advertising has to be very effective. We reach the greatest number of people possible, in the shortest time.

If you've been wondering if an auction is right for you, give me a call at 615-653-0080 and I will be happy to meet and provide a free consultation with no obligations.

Gregory Goff

AUCTIONEER

EXIT Realty Bob Lamb Auction Division (Firm # 5515)




Auctions Making a Big Impact in Tennessee!
Posted - 3 days ago 225 comments

Auctions Making a Big Impact in Tennessee!

The auction business is booming and what better way to dispose of property.  Auctions bring buyers and sellers together for a common cause.  Competitive bidding moves the price higher instead of lower as in the negotiation of a conventional real estate sale.  Auction properties sell with no contingencies and almost always close within 30 days.  Larger down payments are common and promote more closings with hardly any defaults.  Auction advertising is the most concentrated advertising a property will ever receive.  With an auction advertising budget, the property is promoted far beyond any standard real estate listing.  Everyone involved knows when the property will sell and also the date of closing.  Whether you're a realtor, investor or consumer, the auction method can work for you.

Gregory Goff - REALTOR & Auctioneer

Exit Realty Bob Lamb & Associates Auction Division - Firm #5515




View By Category
Auction Facts (2)