Buying Real Estate At Auction
"The finest assets in the world are sold at auction, real estate is no exception.
Owning real estate is part of the American dream and buying it shouldn’t be a nightmare!"
Many potential buyers may not realize buying real estate at auction is one of the fairest ways to purchase any property.
Imagine how frustrating it is to see your dream home for sale and before you can request a showing or more information, it’s already sold! In a competitive market many home buyers are getting beat out in multiple offer scenarios. This is why purchasing at auction can be one of the best options for home buyers.
With a private listing scenario (MLS) home buyers don’t know what the other offers are that are being presented to a seller. At best, home buyers and their agents are told there are multiple offers and are allowed to resubmit their highest and best offer.
Right now many buyers are offering well over list price on homes in order to win. In an effort to make their offers more appealing they are foregoing inspections and waiving all financing contingencies and are still getting beaten with other offers that carry escalation clauses! (An escalation clause is a real estate contract, that lets a home buyer say: “I will pay x price for this home, but if the seller receives another offer that's higher than mine, I'm willing to increase my offer up to y price.)
Home buyers are blindly making offers hoping something will eventually land with an accepted contract. Leaving home buyers wondering if they overpaid or are open to unwarted risks by forgoing inspections.
An auction is the fairest way for a buyer to purchase real estate because all bidders are on a level playing field. Meaning they all must abide by the same terms and conditions. Typically, bidding is conducted either onsite at the property or virtually in an online only auction.
The most basic auction terms might reflect something similar to this: All prospective buyers must place a set deposit (ex. 10% of the purchase price) and the property is being sold in as is condition.
Most properties are available for showings prior to the auction and are open for inspections prior. Bidding is open to anyone and it is a transparent process. The current bid and next bid increment are known. To be the successful buyer, you need to be the last bidder. Upon a successful auction the buyer pays the deposit and has 30-45 days to close on the property.
“Sellers deserve absolute certainty when it comes time to selling their most valuable assets;
likewise, buyers deserve a fair opportunity to purchase real estate and there’s no fairer way than at an auction conducted by a NAA Pro.” - Jay Cash, Auctioneer & Real Estate Broker.
Jay Cash is a licensed Auctioneer and Real Estate Broker in Tennessee, Kentucky & Georgia.