An auction is a sale that is open to the public where goods, properties and even services are offered for bidding. The person who offers the highest bid wins. There are many auctions that specialize in specifies products or goods. Examples are livestock, car, jewelry and even real estate properties. Real estate auctions have gained its popularity because it is an easier way for buyers to buy property at a good price. Sellers also use real estate auctions as a means to quickly sell property without hassle.
Compared to the traditional way of buying or selling property, real estate auctions are more interactive and there is an exact time frame for when the payment of the sales will be completed. Real estate auction houses are those that handle auctions. They have auctioneers and staff who take care of preparing for the auction.
Not everyone though knows exactly what happens when real estate auction houses hold their auctions.
Here is what happens and the things that unfold on auction day.
Before the day of the auction, you might want to talk to your agent so you both clearly understand each other and the process that you have agreed upon. You can include stating your reserve price. This is a price where you are willing to sell your property. If the bids do not reach this amount, you can opt not to push through with selling it. Do not hesitate to ask questions because this will be crucial to the success of your auction.
On the day of the auction, it is important that your agent is there 30 minutes before it begins because he or she is required by law to present the proper documents of the property. The auctioneer will then present all the important details regarding your property. Real estate auction houses may have differing rules and regulations that govern the auction. Each state can also have specific laws.
The auctioneer will then open the floor for bidding. Usually, for real estate properties, bids are raised depending on the amount set by the auctioneer. The auctioneer also has the discretion to accept or not accept bids.
Once the reserve price is reached, the property is then considered â€œtruly on the marketâ€. This means that anyone who gives the highest bid amount gets the property. If the reserve price is not reached, the auctioneer can stop to ask the seller if he or she wants to lower the reserve price. If the seller does not agree, then the property will not be sold.
The winning bidder is awarded the property and is required to make an initial which is usually 10% of the amount. He or she is then given 30-45 days to complete the payment. The sale is considered final after the contract is signed.
Real estate auction houses really give the seller the advantage because it makes the whole selling process easier and faster. The seller barely has to do anything because the real estate auction house takes care of everything.