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BENEFITS TO THE BUYER: * Smart investments are made as properties are usually purchased at fair market value through competitive bidding * The buyer knows the seller is committed to sell * In multi-property auctions the buyer sees many offerings in the same place at the same time * Buyers determine the purchase price * Auctions eliminate long negotiation periods * Auctions reduce time to purchase property * Purchasing and closing dates are known * Buyers know they are competing fairly and on the same terms as all other buyers * Buyers receive comprehensive information on property via due diligence packet copyright Realtors.org used with permission. |
| Typically auctions can be held on line, at a site or home. Most sellers have a reserve price at which
the buyer has to bid more than in order for the home to sell.
Auctions can be done by mail with buyers putting down 10% of the
offer at bid. By
using a Realtor a seller takes the risk out of this process. Buyers bring a bank certified check made out to themselves for 10% of their bid price. Inspections of the property are before the auction. Sales are as is with no contingencies for financing or inspections. They normally close in 30 days or less. Buyers pay a buyers premium of 10% of the purchase price (if the home sells for 400k the buyer pays 440k). Seller's normally make 80-120% of the fair
market value but sell in much less time, saving carrying
costs and uncertainty. Seller's pay an
upfront fee for the marketing as it is highly intense.
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