- Helmsley Estate Sells Manhattan Hotel March 10, 2010The Helmsley Carlton House is being sold to a partnership between private-equity firm Angelo, Gordon & Co. and Extell Development for about $170 million. […]
- General Growth Debt Bet Pays Off March 10, 2010A handful of investors dug to the bottom of the discount bin and snapped up General Growth's convertible bonds at three cents on the dollar. They now trade at 103 cents. […]
- European REIT Rollout at Hand March 10, 2010With European property markets beginning to recover from the market downturn and global recession, there are signs that the REIT revolution could be at hand. […]
- BofA Lawyers Rebuked in Cabi Case March 10, 2010BofA lawyers have agreed to reimburse lawyers for a Miami developer after a judge's rebuke for trying "to score a litigation point" in an ongoing foreclosure dispute. […]
- Marriott Expands in Europe March 9, 2010Forty thousand more hotel rooms on the Continent would have Marriott brand names in the next few years under the company's plan. […]
events
APARTMENT BUILDING AUCTION
The featured inventory will be starting at low Min. Bids.
March 27, 2010 at Chicago Marriott OAK BROOK
AUCTION SEMINARS
Learn how to sell and buy at real estate auctions.
OPEN HOUSES
Inspect the properties prior to the auction.
Selling at Auction
When most people think of auctions they think of buying but in order to buy someone must be willing to sell. Selling at auction for real estate is definitely not for everyone. In the best of situations your property should be in the same price range as all the other properties in the auction. The last thing you want to see is that the majority of the properties in the auction are derelict homes in a low value area when you are trying to auction off your four bedroom, 3 bath, updated kitchen and family room home. You are most likely to not have much luck selling your home at market value since everyone at the auction is comparing prices on the other available properties.
Selling at auction requires a legal agreement and most auctioneers will wish to enter into a sole agency agreement. This means they will advertise your property in brochures and catalogues on your behalf with the understanding you will be liable for the costs of that advertising, as well as a portion of the room fee, regardless of whether someone buys your property or not. This may not seem fair but in reality you will have a hard time finding an auction company who will sell your property without such a legal, binding agreement. And these may not be the only fees involved so find out about the charges before you sign any documents. Once you have satisfied yourself with the agreements you should discuss pricing. Find out the likely market value of your property and seek advice at what price to advertise as the reserve bid.
Now that you have everything in place there is nothing left but attend the auction. As the seller you must attend the auction due to a variety of reasons, one of which is you may want to take a lower offer than the advertised reserve bid to get your property sold. When the gavel goes down that last time it signifies the agreement of a binding contract between buyer and seller and you have sold your home at true market value. The buyer must now pay 10% of the total sale price before leaving the auction house and in most cases must pay off the remaining balance in 30-45 days. Your responsibility as the seller is to guarantee your ability to legally convey the property to the new buyer. Selling at auction has its advantages for buyer and seller and can be the way to go depending on your motivation and comfort level.
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