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Posts Tagged ‘Real Estate Auctions’
Auction Financing
Potential bidders in a real estate auction must be qualified financially in order to participate. At RealEstateAuctions.com, we’ve got an auction financing resource that is literally on the map, nationally.
Bank of America is our preferred lending partner and we couldn’t be more proud.
Bank of America is the largest bank holding company in the United States, by assets. The company operates in every state plus the District of Columbia.
What it means for the consumer is unequaled access to the best financing products available.
Because of the accelerated transaction process that typifies a real estate auction, buyers must come prepared to close. The seller promises clear title at closing, ample inspection opportunities and a price he or she will accept that’s often considerably reduced from a previous listing price. Therefore, bidders must be prepared to close.
This means that auctions are not a place for tire-kicking. Bidders must have cash or financing in place to close within 30-45 days. Winning a property at auction, then starting the real estate financing process, is not the recipe for success. Auction contracts provide for no financing contingencies, no closing date push-backs because of a lack of financing. Bidders unable to close on the specified date risk their earnest money and possibly even more. Sellers may seek additional compensation beyond earnest money from buyers unable or unwilling to close beyond.
With auction financing such a critical component, there’s really no better choice than RealEstateAuction.com’s preferred lender, Bank of America.
What distinguishes our relationship with Bank of America is not only the programs and rates available, but the people. Thomas Faille is Bank of America’s Number One Professional Mortgage Counsultant. That’s correct, he’s Number One in the entire Bank of America operation nationwide. He and his team are regular visitors to the offices of RealEstateAuctions.com, educating our auction specialist Realtors about the newest loan options. And of course, Tom and his associates also meet with our clients interested in financing for auction and non-auction real estate. You can’t beat that kind of personal service from the best in the business.
Be sure to have your financing in order before registering to bid at a real estate auction. We’d be pleased if you’d consider our preferred lender, Bank of America, but off course you’re free to select any lender of your choosing. You’d certainly be wise to compare programs from different lenders, however. It’s always important to get a second and even third opinion on important financial undertakings like auction financing.
Absolute auctions
Of the three types of real estate auctions: absolute, minimum bid, and reserve, absolute auctions are probably the ones the casual observer is most familiar with. According to industry professionals, they definitely are the ones that generate the most excitement among spectators and bidders.
To explain briefly the differences between the three, in a minimum-bid auction, a seller sets a minimum price at which bidding must start. This gives the seller protection that the property won’t sell for an unacceptable price, but it can also deter people from participating if the minimum is set too high. A reserve auction, too, offers some protection to the seller, by giving him or her time to accept, reject or counter the highest bid. But reserve auctions tend to draw less interest from bidders because the sale is not guaranteed.
That leaves absolute auctions, also known as auctions without reserve, in which the property is sold to the highest qualified bidder with no limiting conditions or amount. Of course, sellers cannot bid on their own property, either personally or through an agent. This type of auction is understandably of most interest to bidders, and observers, because they create more excitement and participation. This benefits the people selling real estate too, by drawing more prospective buyers to the auction.
Often, during minimum bid and reserve real estate auctions, the seller will signal the auctioneer that the minimum bid and it then becomes an absolute auction. When the auctioneer then publicly announces that the auction has become absolute, the excitement in the room increases considerably. I witnessed this myself when I attended my first real estate, which OwnACondo.com held in November. Whenever auctioneer Vinnie Zaffarano announced that the reserve auction had become absolute on a particular condo sale, everyone in the room perked up and the excitement grew. I have seen it time and again at vehicle auctions also, with the atmosphere becoming almost electric as the bids keep increasing to the rhythmic call of the auctioneer. After all, these are the types of auctions people are most familiar with, from seeing them on TV if they haven’t actually seen them in person.
Auctioneers, or any real estate broker conducting an auction, will encourage those listing property to take a chance and have their merchandise sold by absolute auction from the beginning, just because the added interest from those buying real estate, or anything else for that matter, so often results in a higher selling price. This is true for Internet sites such as eBay, as well as brick-and-mortar auction houses such as RealEstateAuctions.com.
Auctions
You are ready to buy a home! How exciting is that! An auction may be a great way to get your price and reduce the time and red tape of a traditional home purchase. Can you imagine moving into your new home in as little as 30 days. It can happen and we are going to give you a road map on how to do it.
I know your first question. How does an auction work? You have seen auctions on TV or may have even participated in an Ebay auction for smaller items but auctions all work basically the same way. The properties we make available to you are obtained from private sellers, banks or developers and most importantly to you are free and clear to close the day of the auction. That’s how you can close in so little time!
Picture this! You are in a room filled with people and the excitement is like an electric charge throughout the room. The auctioneer calls up the first property to be sold. Everyone is on the edge of their seats waiting to see what is about to happen. It is an absolute bid property which means no matter the final price the property is sold when the gavel goes down. Everyone is in anticipation of what the property will sell for and who walks away as the winning bidder. Only registered bidders with paddles can bid so don’t worry about scratching you ear or blinking – that only happens in the movies. If you want to bid, raise your paddle and the bid assistants in the room will help you through the process, making certain you know the current bid and that the auctioneer has acknowledged your price. But the auction is not over by any means because the auctioneer has not declared the item sold until the gavel goes down and bidding is closed. The auctioneer calls for the final bid, there is a silence in the room, finally the gavel goes down and applause and congratulations fill the room. You are now the proud owner of your new home!!!
Auctions are thrilling! There is anticipation, excitement and reward for the winner bidders. They got a great deal on the home they want and best of all you will know in just a few minutes the home is yours and you will be moving in less than a month.
How exciting is that!!!
Real Estate Auction Marketing
RealEstateAuctions.com employs the best real estate auction marketing to help buyers and sellers reach their respective goals. Our real estate auction is a high-performance vehicle that can get a property sold at a price and time frame that benefits both parties.
Harness the power of RealEstateAuctions.com to accelerate your real estate sales in a popular auction format. As a seller, you can have buyers competing against each other for the opportunity to purchase your property. As a buyer, you have multiple properties of interest and the ability to name the price at which you feel most comfortable.
Real estate buyers everywhere are taking part these days in auctions. The events held by RealEstateAuctions.com are the best. Here’s how we make our real estate auctions the kind of event that buyers and sellers can’t wait to get involved with:
- Expressway billboards announcing the event
- Lighted rooftop taxicab signs
- Radio spots
- Newspaper ads
- Printed brochures distributed to real estate offices
- Internet marketing
- The RealEstateAuctions.com website
- Email blasts to our client database, currently numbering 50,000+
- Dedicated team of Auction Specialist Realtors®
Auctions held by RealEstateAuctions.com bring buyers and sellers together with some of the best properties currently available, in a variety of different categories and many different locations. Our real estate auction marketing helps make this a great event.
As a seller, you’re looking for:
- Quick real estate sale
- Qualified buyer backed with cash or lender’s pre-approval
- An end to your carrying costs
- Safety of a minimum bid or reserve so your property can’t be sold for less than you deem acceptable
An auction held by RealEstateAuctions.com provides these benefits and so much more.
Auctions are action-packed, fun and potentially profitable for buyers and sellers alike. Buyers love the ability of having dozens of desirable properties available in one place. They enjoy the opportunity to bid at a level they believe is the true market worth of the property. Their fellow bidders, however, may have a differing opinion and prices tend to go up when bidders compete!
Buyers also appreciate the clear title at closing, the full disclosures that are provided and quick closing time. These bidders are ready to buy your property. Perhaps they’ve caught “auction fever” or perhaps they’re simply curious about this increasingly popular way to purchase real estate. No matter their motivation, they’ve seen the marketing, they’ve registered with our website and they’re ready and willing to buy.
Contact RealEstateAuctions.com today to have your property considered for inclusion in our upcoming event. We’ll guide you through all the necessary steps and we’ll get our leading real estate auction marketing working for you!
How to Bid at Real Estate Auctions
Taking part in an event held by RealEstateAuctions.com is easy. Here’s how to bid at real estate auctions:
Before The Event
- Preview any and all properties of interest on any of the Open House dates that will be held prior to the auction.
- Carefully review the disclosures provided for each property, the terms and conditions, and the sales contract. Be sure you understand all the documentation. Seek the services of an attorney, if appropriate.
- Get a financing commitment from a lender if you will not be paying cash. Waiting to do this crucial step after you purchase could result in denial and loss of earnest money. A lender will be available at the auction event if you have not yet secured a pre-approval, but it is highly recommended you not wait until this point to check. You might not qualify for financing.
- Register on our website as a bidder. We’ll also take registrations at the door on the day of the event, but you’ll save yourself considerable time by registering online. If registering at the door or checking out financing with the on-site lender, be sure to arrive early.
At The Event
Check in at the door with the following:
- Driver’s license, state photo ID or passport
- A cashier’s check in an amount specified (varies per property)
- Personal check to supplement the cashier’s check, if needed
- A pre-approval letter no more than 30 days old from a mortgage broker or lending institution, if you intend to finance your purchase (vs. a cash transaction).
Among the registration items you’ll receive is a numbered card or paddle which you’ll raise at the appropriate time during the auction to indicate your bid.
Getting Started
Taking your seat inside the auction room, you’ll listen to the event facilitator review the legal terms and conditions, along with a basic explanation of how the event will proceed.
The auctioneer will take the podium and kick things off with the first property to be auctioned. A photo and relevant facts will be displayed on large screen. You’ll find the same information on a printed brochure available in advance and at the door. The auctioneer will announce updates on any new additions or deletions that are not part of the printed brochure, so everyone is fully up to date on how to bid.
Each property will be listed in the brochure as “Absolute Auction,” “Minimum Bid Auction” or “Reserve Auction.” The auctioneer will verbally confirm these designations. He then begins the famed auctioneer’s chant, soliciting bids from the crowd. As a bidder, you will raise your numbered card or paddle when you wish to place a bid at the price the auctioneer is calling. Scratching your nose or clearing your throat will not count as a bid.
Depending upon where you are seated in the room, the auctioneer or one of his official assistants standing in the crowd will acknowledge your bid. The auctioneer continues the process, with the price moving ever higher. You can make as many bids as you wish as the process moves along.
If You Win
- Proceed to the designated area to begin paperwork.
- A 5% Buyer’s Premium will be added to your winning bid, making your Total Purchase Price your winning bid plus the Buyer’s Premium.
- Tender the cashier’s check in the amount specified for the subject property. A receipt will be provided.
- Write a personal check, if needed, to make the required down payment on the property, which is typically 5% of the Total Purchase Price.
Properties with a Total Purchase Price of $10,000 or less must be paid for in full on auction day.
Your closing will be scheduled within 45 days of the auction.
Can You Change Your Mind About A Bid?
Yes, as long as you inform one of the official bid assistants while the bidding is still in progress and you have not yet been named a winner of the auction. Mistakes happen, of course, but the auction is serious business and you should be extremely careful about the actions you take during the bidding process. Know exactly what you doing. Do not bid if you are unsure or think you might want to retract.
The Official Bid Assistants
These professionals will be standing among the crowd during bidding. They keep watch over the same section of attendees and are there to help you.
For more information about how to bid at real estate auctions, please don’t hesitate to contact us.