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Buyers
Buying at auction is becoming more popular every day. Many experts predict a high percentage of all real estate will be purchased at auctions. It works for Ebay, Fine Art and Treasures through Christies and Sotheby’s, Automobile and many other high-end commodities. It works for Real Estate too. Fueling the high comfort level of many buyers is the comfort and usage of the internet. Which allows buyers to quickly learn much more information about the property, financing, and the buying process. Ebay has legitimized auctioning as an acceptable form of commerce to its masses.
Buying at Auction gives you the control of naming your price in a live bidding environment. You get to hear what others are offering on the property. There is no guessing as to what other buyers are willing to pay and you don’t have to go through the negotiating process with the seller or Realtor. You are competing under the exact same terms as the other bidders. The only thing you are negotiating is price. You will have the confidence of knowing what the market value of the property is based on what the other bidders are offering.
Benefits to the Buyer
- Smart investments are made as properties are usually purchased at fair market value through competitive bidding
- The Buyer knows the seller is committed to sell
- Buyers determine the market price
- Auction eliminates long negotiation period
- Auction reduces the time to purchase property
- Purchasing is quick and closing dates are known
- Buyers know they are competing fairly on the same terms as all other buyers
- Buyers receive comprehensive information on the property via the Bidder Information Packet and their own research and inspection.
Buyer FAQs
Registration
All parties seeking to bid on the properties at auction must sign up at the registration table and present a cashiers check or certified funds payable to themselves in the amount set in the terms and conditions of each sale. Please read a copy of all terms and conditions prior to the auction. The successful bidder will endorse this check over to A.S. McGhee Auctions Escrow Account at the conclusion of the auction. All other bidders receive their checks back. All bidders will be required to sign a statement prior to commencement of bidding that the bidder has inspected the property and all the sales documents.
The Bidders Packet
This Packet of information about the property is available to all buyers. This package will give you most of the information you will need to make an informed decision. It will typically include: the marketing piece, information on what comparable properties are selling for; survey, if available; utility information; copy of the deed; Home Owners Association Package, if applicable; Covenants and Restrictions, if applicable; a copy of the contract; a copy of the terms and conditions; and any additional information that may be available. This packet may not be inclusive of all information available. It will be up to the Buyer to do their due diligence and satisfy themselves as to what information they need to make an informed decision. All Auction property is sold in “As-is” condition. So, you should rely on your own research. You will be required to sign a statement that you have received and reviewed the Bidder Packet.
Auction Format
All bidding is open and public to the bidder during the auction. You simply raise your hand with your number when you hear the amount you wish to bid and wait for the auctioneer to acknowledge your bid. That will continue until the bidding stops. The auctioneer will acknowledge the highest bidder and declare the property sold. Assuming the property has met its reserves, if applicable. If you are the winning bidder, you will be escorted to a separate area where the paper work will be completed and the remaining deposit, if any, shall be paid. You will be asked who your lender is, if applicable (again the contract will not be subject to said financing) and the settlement company you plan to use. If you do not have one we will give you a recommendation.
Buyers Premium
The sale at auction may provide that the purchaser pay as part of the purchase price a premium added to the highest bid. Check the terms and conditions of the property you wish to bid on to see if there is a buyer premium. The highest bid plus the buyer premium will equal the total purchase price.
Condition of the Property
Each property is sold AS-IS. Your complete inspection by you or your experts prior to the auction is encouraged. Those inspecting the property assume all risks.
Closing Date
The purchaser shall pay the balance of the purchase price at closing. TIME IS OF THE ESSENCE. Your failure to do so will cause you to forfeit your deposit. The seller may, in his sole discretion, extend closing under certain circumstances by a payment of $75.00 for each day closing is delayed.
Broker Participation
Broker participation is welcomed on most auctions. Check the terms and conditions of the auction to make sure a cooperating broker fee is being offered. The Broker MUST complete a Broker Registration Statement prior to the auction, follow the terms of the registration and submit it 2 business days prior to the Auction. No Exceptions.
Agency Disclosure
The Auctioneer will be representing the Seller in the sale of the property.
Financing
Financing to qualified purchasers and investors will be available through Bill Bader, Greenwood Lending – (434) 975-4600 or (434) 409-2968. Arrange your financing well in advance of the auction. A loan officer will be available at each public previewing by phone or by appointment. The contract will not be subject to obtaining financing
To Summarize...It’s Simple...
- View the property
- Request a Bidder Packet and review all the information
- Register for the auction either the day of the auction or by contacting the Auctioneer prior to the Auction
- Arrange Your Financing, if applicable. Again the contract will not be subject to financing
- Get a Cashiers Check or certified check made out to you. Review terms and conditions of Auction to verify amount or contact us.
- Attend the Auction and bid by raising you number
- If you are the highest bidder you will be asked to sign all paperwork. Auctioneer will retain your deposit and return all others
- Closing will be in 30 days
Congratulations!
Contact us if you wish to make an offer prior to the auction, have any questions, wish to preview a property or request a Bidder Packet.