- Brookfield Wagers on D.C. March 17, 2010Brookfield Properties is eyeing a collection of about 20 buildings in or near Washington that fell into default last summer. […]
- Simon Readies New Bid for GGP March 17, 2010Simon Property is readying a sweetened takeover bid for bankrupt rival General Growth that would top an offer on the table from several General Growth investors. […]
- Regus Hits Rough Seas March 17, 2010The provider of outsourced office space in Europe has seen the recession put pressure on occupancy and pricing, damping earnings. […]
- Developers Back Off Harlem Plans March 17, 2010Kimco Realty is the latest real-estate developer to consider pulling out of a project in the predominantly African-American and Hispanic community in upper Manhattan. […]
- Westbrook Swoops In to Aid Millennium March 17, 2010The deal saved the Four Seasons San Francisco from possible foreclosure. Westbrook also got controlling stakes in Millennium's Four Seasons Miami and Ritz-Carlton Boston. […]
- Bankers Exit CBRE for Jones Lang LaSalle March 16, 2010Jones Lang LaSalle, a global commercial-real-estate services company, hired away a team of bankers from industry leader CB Richard Ellis Group. […]
- Land Sale Records in Beijing March 16, 2010On Monday, land sales in Beijing shattered price records—not once but twice, according to a report in China Daily. […]
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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