Everything you wanted to know about a Real Estate and Condominium Auction
In preparation for an upcoming Condominium Auction, I am pleased to provide the following Real estate Auction FAQ for my visitors and customers. The auction information is deemed reliable but not guaranteed.
WHY AN AUCTION?
Sometimes a Seller will select an Auction method of marketing in an effort to accelerate the sales process for the sale of 1 or more Condominium Units. Often in an Auction, Buyers may be able to obtain Condominium Units offered at reasonable prices.
WHAT IS AN ABSOLUTE SALE AND SOLD SUBJECT TO THE SELLERS APPROVAL ACTUALLY MEAN?
An Absolute sale refers to units being sold to the Highest Bidders regardless of Price – No Minimums, No Reserves. Sellers approval refers to Condominium Units which may be sold to the Highest Bidders however the sale is subject to the final approval and acceptance of the prices by the Seller.
ARE AS IS RESIDENTIAL CONTRACTS FOR SALE AND PURCHASE CONTINGENT UPON FINANCING?
Not always. Sometimes Seller approved Purchase Agreements are not subject to a Buyer obtaining financing or any other contingencies such as post due diligence, inspections etc. The closings on the Condominium Units usually need to occur within several days of the original auction date.
ARE TITLE ASSURANCES PROVIDED TO BUYERS?
Often, the Seller will provide a Title Insurance Commitment and Policy for the auctioned Condominium Units insuring the title to be free and clear of all liens. The premium for the Title Insurance is often at the Buyers expense.
IS THE INFORMATION PROVIDED IN BROCHURES, INTERNET AND NEWSPAPER ADS GUARANTEED?
Absolutely NOT It is highly recommended that auction participants and buyers rely entirely on their own information, judgment and their inspection of the Condominium Units. Usually, an Auction Sales Office is available to schedule access for Buyers to inspect the Condominiums.
WHAT IS A 10 BUYERS PREMIUM?
A Buyers premium is basically a commission for the auction house.
For example: @ 10 – If an offer is $100,000.00, (example only), the Total Contract Price will be $110,000.00. If a Buyer wants to purchase a Condominium Unit at approximately $100,000.00, – bid $90,000.00 and the Total Contract price would be $99,000.00.
WHAT DOES IT MEAN TO BUY A CONDOMINIUM AS IS?
Condominium Units may be sold in their As-Is condition with all faults with no guarantees, warranties express or implied. Remember, Buyers must rely on their own inspection, judgment, records and own information as there is no post due diligence period.
Announcements from the Auction block will always take precedence over any previously printed advertising material or other oral statements made.
Remember: The auction information is deemed reliable but not guaranteed.
WHAT IS HIGH BIDDERS CHOICE?
Condominium Units sold on a High Bidders Choice concept means each unit type will be available on a menu for bidders selection.
The first high bidder will have their choice to select which Condominium Unit(s) he/she wants to purchase.
An example would be that the first bidding round may end with a total bid price of $200,000.00 (example only). The Auctioneer will ask which Condominium Unit the winning bidder wants to purchase at the winning bid price. When the Bidder selects a specific Condominium Unit, it is crossed off the inventory and the remaining Condominium Units would be available on the menu for the next bidding round. If the high bidder wants two Condominium Units – it would be two (2) Condominium Units x $200,000.00 each or $400,000.00. Some auctions limit the number of Condominium Units a winning bidder can take on any given bidding round which encourages bidders to bid as high as they can, so their selected Condominium Unit wont be selected by another winning bidder.
A) All prospective bidders are encouraged to inspect the Condominium Units of which they have interest during the pre-auction period.
B) Bidders qualify to bid at an Auction, by providing a proof of funds document, usually in the form of a cashiers check made payable to a Title company who will be conducting the closing. Bidders interested in purchasing multiple units at the Auction, are usually required to bring the required cashiers checks for as many units they wish to purchase.
C) All bidders are encouraged to review any and all documents necessary for the transaction in any supplied Property Information Package (PIP)
D) Online Bidding is often available for real estate auctions.
If you require additional information on real estate and condominium auctions, contact Jennifer today. Directly: (850 ) 774-6582.
Remember: The Panama City Realty Group and Jennifer Mackay Sells Homes, Condos and Commercial properties in Panama City, Florida
When you want your Condominium, House, Land or Commercial property or business sold in Panama City or Panama City Beach contact Jennifer today. Directly: (850 ) 774-6582.
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Source: Panama City Realty Group