Myth # 1 An Auction is the avenue of last resort and only for distressed properties
Like art, jewelry and other high end items, auction work for stabilized and opportunistic properties in the most desirable markets. True, the platform’s success late int he default cycle is certainly unique and highly valuable to banks & lenders. However, RE/MAX Realty Professionals is having sudcess in the Real Estate market, which is realizing that using auctions as a first resort can be very effective.
Myth # 2 Buying at Auction means buying “sight unseen”
Just like a conventional process, RE/Max offers full due diligence and physical inspection, open house dates and private showings of the property.
Myth # 3 There are hidden fees
Let’s be clear, there is never a cost to participate. The only fees are paid at the time of closing.
Myth # 4 Its Rigged. I’m bidding against the Seller
This myth typically refers tot how auction companies support bidding to ensure the price hits the reserve, which is the minimum the seller will accept. The Seller is never allowed to bid on his/her property.
Myth # 5 I need to be tech savvy to bid in an online auction
*When requested by the Seller, we also conduct the Real Estate Auction online. We do this in one of two ways. We either conduct a Public Auction with live simultaneous bidding OR we offer absentee bidding online that ends 1 hour prior to the live Auction. We offer this in an attempt to better reach any/all potential Buyers. We also accept bidding over the phone during the live Auction, arrangements prior to Auction day must be made in order for us to accept bids over the phone.
*We are able to provide remote document signing for our Seller(s) as well as the Buyer(s), when necessary. At times we have more than one Seller on a single piece of Real Estate, one or more of the Sellers involved may be out of state or country. We can provide real time digital document signing that is secure, saving the Seller time & money.
*We offer a commission to other Listing Brokers/Agents that exceed what most other companies are willing to offer. We also offer a Broker/Agent participation commission that exceeds what most other companies offer. We love to work with Brokers/Agents outside of our office, whether it be helping them sell their listing at Auction or when they bring a Buyer to our Auction. We want to compensate them very well for working with us.
*When the Auction has reached the conclusion, we sit down with our Seller & the Buyer and go over/sign the Contract for Purchase, any/all Addendums, collect predetermined non refundable earnest money and set a closing date for 30 days or less following the Auction. This is kind of how car auctions work too but not as much detail. We thank our Kansas City auto glass crew for there work. Also, we accompany our Seller to Closing. Buyer takes possession after Closing.
Buying Real Estate at Auction; Our Process & How It Works
We are different than any other company when it comes to Real Estate Auctions. We offer services to our Sellers that are unique.
*After we list Real Estate for Auction, UNLESS we are selling the property ABSOLUTE WITHOUT RESERVE, we present all offers to our Seller up to the day before Auction. Why do we do this? It is very simple, we want the Seller to have as much exposure to an offer that is acceptable as possible. We have had great success in the past presenting acceptable offers to our Seller prior to Auction day. When this happens, more times than not the Seller is reimbursed dollars that were set aside for marketing & advertising. We are able to cancel any marketing in place before it hits print, thus saving the Seller money & getting the Seller a contract price they are happy with. When the Real Estate is sold in a case like this, it is sold under the Auctionterms & conditions, this again is favorable to our Seller.
*Once we have a listing agreement in place, we begin marketing & advertising the Real Estate. Part of this process includes conducting multiple Open House events when appropriate. We also hold an Open House the day before the Auction as well as opening the property an hour prior to Auction time. We also open the property for any/all inspections by appointment. We want any/all potential Buyers to have multiple opportunities to inspect & view the Real Estate. We also provide ample signage on the property that works for us 24 hours a day. We provide statistics to our Seller informing them of any interest in the Real Estate they have to offer. We find it necessary to keep our Seller up to date on the level of interest.
*We provide potential Buyers & Real Estate Brokers/Agents all information we have about the Real Estate as well as registration paperwork any time prior to Auction day as well as Auction day itself. We want all of our Buyers & participating Brokers/Agents to have all the information about the Real Estate in a timely manner. At any time potential Buyers can also access this information on our website or by calling one of our Team Members.