Why would I purchase property through an auction?
Great question! Here’s why:
- Auctions are designed to satisfy buyer needs for quick selling pace, logical presentation of property, disclosure of property condition, quantity or size of lots offered, appropriate auction technique as well as fair and reasonable terms.
- Buyers are able to make smart investments by purchasing at fair and open market value at public auction.
- At auction, buyers are able to judge market value during the bidding process and buy at the lowest price possible, which is just one bid over the previous contending bid.
- Buyers know the seller is committed to sell.
- In multi-property real estate auctions, buyers are presented several properties at one auction.
- Buyers avoid long negotiation periods reducing purchasing time.
- Buyers know when they will purchase as well as when possession and closing will take place.
- Buyers know they are competing fairly and on the same terms as all other buyers.
- Buyers are able to fully inspect property and perform due diligence prior to bidding.
Why do sellers use the auction method to sell their property?
Auction sellers want to know when their property will sell, that it will bring fair market value and that it will be sold with no contingencies.
How do I find out about upcoming auctions?
Auctions are advertised with real estate yard signs, in newspapers, by targeted mail and online. One of the easiest ways to find out about our upcoming auctions is to check our web site regularly or register for email auction notices.
I have never been to an auction – how do I know I’ll be treated fairly at yours?
Lots of newbies come to our auctions. We guarantee your complete and total satisfaction with our services. To help facilitate that, we keep the auction process simple and welcome you to ask questions during the auction or prior to it. At the auction, you may approach any one of our staff members and let them know if you are new to the auction process so that we can better assist you. We would be happy to meet with you or your group anytime to fully explain the auction process to you.
What should I do before attending a real estate auction?
We seriously encourage buyers to thoroughly inspect a property and be familiar with the terms of the auction before they bid. This includes obtaining an auction flyer and other auction documentation, examining a seller condition disclosure statement, attending open houses, completing a physical inspection, getting assistance from professionals as well as asking any and all questions you have of us or any other source. You’ll also want to make sure the sale is conducted by a licensed professional auctioneer. The only thing left to do on auction day should be to become the successful bidder!
May I finance the purchase of real estate at auction?
Yes, however the sale of the real estate is usually not contingent on seller financing. Speak with your lending institution when you develop an interest in the property so that they can pre-approve the amount you are able to borrow on the real estate. Once you have become the successful bidder, you will usually have up to 30 days to close during which time the balance of the financing arrangements may be addressed. The lending institution is welcome to call us to receive any information about the property that we are able to share.
What are the terms and conditions of the auction?
The terms and conditions include critical information you will need to know prior to bidding. They are usually included on the auction flyer and are available at the auction in the bidder packet. They will also be read aloud before the auction. Specifically the terms and conditions may include information such as the required deposit, closing date, lead paint hazard information, pertinent lease information and usually the notice that the property is being sold without guarantees or warranty of any kind. Announcements made sale day take precedence over previous written or verbal information.
Since the property is being sold without guarantees or warranty of any kind, what assurances do I have?
Sellers of residential property must complete seller condition disclosure statements and all known hidden defects must be disclosed prior to the auction. Beyond that, we urge buyers to thoroughly inspect the property before purchase and rely on their own inspection for guidance. We will assist by making every effort to make the property available for buyer inspection.
How do I bid during the auction?
The auctioneer will be asking for a certain dollar amount during the auction. When the amount asked for is the amount you want to give, get the attention of the auctioneer by holding up your bidder card, by waving or shouting out “Yes!” If you are ever in doubt about what you bid, if you have the bid, or what the auctioneer is asking for, you may ask the auctioneer or their bid assistants. Don’t be afraid to bid – the auctioneer will not allow you to bid against yourself.
What is one of the biggest mistakes I can make at auction?
Never assume the property will bring too much for you to buy it. Many times people make that sort of assumption based on a rumor they’ve heard or on something another potential bidder tells them to discourage their attendance. Too many times a person calls the auctioneer after the sale and finds out a property sold for far less than they would have given for it had they attended the auction.
How do I register a buyer for upcoming auction?
If you are an agent representing a client who is interested in bidding on a property we are offering at auction, your client may register you as their agent and enable you to receive participating broker compensation. In order to qualify for participating broker compensation, your client must submit a serious written opening bid, participate in the competitive bidding process and finally purchase the property and close the sale. A P.J. Morgan Real Estate Participating Broker Registration Form must be completed and submitted (24 hours or more) prior to the auction. Please contact us at 402-397-7775 to request a registration form.