1. If you have never attended a real estate auction before, what should one do?
· You should subscribe to our e-mail list to get listing of upcoming real estate auctions.
· Obtain a listing of all properties in the real estate auction.
· Call your lender and pre-qualify.
· Preview all properties of interest.
· Check out the values in the neighborhood and set a range of value or limit for your bidding.
· Be prepared to bid to your limit.
· Review the Terms and Conditions of the auction you are interested in.
· Do your due diligence on the property by performing, at buyer’s expense, all inspections necessary for your particular interest in the property.
· Arrive early at the auction site to register to bid and get to know the auction staff.
· Ask questions about properties of interest prior to bidding.
· Determine what the property is worth to you and then bid confidently to obtain it.
· Get comfortable and relaxed.
· Listen closely to the auctioneer.
· Don’t be bashful or you might miss a great buying opportunity.
· Once you are successful, sign documents and you’re on your way to closing.
2. What do you mean by free and clear title of all monetary liens?
Once agreeing to and signing all documents to purchase a Yount Auction and realty auction property, it is highly recommended to have your closing attorney perform a title search on the property. With the performance of their search, they are discovering that the property has good, insurable title with no liens, judgments, mortgages, or back taxes. If for any reason the title cannot be cleared, the down payment is refunded.
3. What are Previews?
Previews are exhibitions of property to be auctioned, offered free to the public on an advertised date or by appointment. The Preview is an opportunity for buyers to examine closely individual properties prior to the actual auction. It is strongly recommended that all buyers preview properties prior to bidding. Yount Auction and Realty encourages you to bring your contractor or home inspector with you for inspections.
4. What is a Buyer’s Premium?
A Buyers Premium is that portion of the commission paid by the buyer. The Buyer’s Premium is added to the bid to become part of the total sale price. This rate, usually stated in a percentage is advertised in the Terms and Conditions of the auction, prior to the auction date.
5. Can I make an offer prior to the auction?
Absolutely. We will submit the written offer on the Purchase & Sale Agreement to the seller for acceptance. Of course the Terms and Conditions of the auction will be adhered to. We recommend that you make your best offer at this time.
6. How do I bid in the live auction?
Simple, just signal the Auctioneer or one of the bid assistants to start or participate in the bidding. It is best to use your bid card to get attention. After the auctioneer/bid assistant has acknowledged your bid they will be watching for subsequent bids. If you are the successful bidder, hold up your bid card so that they can record your bid number on the Bid Acknowledgment Form. If the bidding exceeds your limit, simply nod your head “no” and the auctioneer/bid assistant will look elsewhere for bids.
7. Where does the bidding start?
Anywhere the auction audience wants to start it. An auctioneer might ask for $100,000. to start. If no bid he will drop the asking increment until someone starts. The property might start at $25,000 and soar to $400,000 or end at $50,000 based on market value, which is determined by you, the potential buyer.
8. What does Subject to Confirmation mean?
It means that the property is being offered to the highest bidder subject to the seller accepting or rejecting the bid. Most Yount Auction and Realty auctions are offered subject to seller confirmation.
9. If a seller has a reserve, why don't they tell us the reserve, instead of wasting our time?
Yount Auction and Realty is only interested in representing motivated sellers. It is not a waste of time to go to subject to confirmation or reserve auctions. Motivated sellers usually set their reserve based on their belief of the true market value. However, by not printing a stated minimum, they have the flexibility to lower their reserve and accept true market value on the day of auction.
Example: A Seller sets a reserve of $100,000 on his home because his neighbor’s sold for $110,000. On the day of the auction he witnesses 25 registered bidders compete to drive the bidding to $96,600. No one is willing to pay $96,700. The Seller has purchased another home and does not need the one he is auctioning. Today is the day and he opts to accept $96,600.
10. Why would I sell Real Estate at auction instead of pricing it?
Auctions are fast, efficient and produce fair market value. When a property is “priced” it is either underpriced or overpriced. Either way, you lose. If the price is too low it sells quickly, but equity is lost. The first bargain hunter that comes along steals it, perhaps making the profit that should have been yours. If the price is too high the property does not sell. It then has to be advertised again at a lower price or negotiated through negative haggling with one person at a time.
Un-needed real estate is expensive to hold (taxes, maintenance, insurance, etc.) The auction creates a sense of urgency. All serious buyers are brought together to compete, driving the price upward. You are assured of fair market value. The auction method of marketing is the only method where you may receive more money for your property then you would have asked.
11. What is considered when deciding if my property is a good auction candidate?
Yount Auction and Realty does an extensive consultation with potential sellers and reviews the seller’s motivation and the marketability of the property. In short, a motivated seller in a positive financial position to sell in today’s market is a good candidate. If, on the other hand, you owe more on a property then it is worth, the auction method is not for you.
12. Can I auction a property that has a mortgage, taxes or liens owed?
Yes, most Sellers have a mortgage and or other liens on their property. However, the total owed should be substantially less than the anticipated sale price. The payoff will be held out at closing.
13. How much does it cost to conduct an auction??
Commissions for services provided by Yount Auction and Realty are negotiated based on the selling circumstances, and the motivation of the seller. However, the seller is responsible for the actual advertising and marketing expenses. During the consultation process, Yount Auction and Realty will provide a seller with a budget and timetable for the sale of any property being considered for auction.
14. What is the timetable for a real estate auction?
Typically 30 to 60 days. Yount Auction and Realty recommends a minimum of 45 days from the time your property is listed until the auction date. The 45 days enables adequate time for brochure distribution, advertising, signage and Preview time. Some special properties require more time and we have conducted auctions in shorter time frames. With a FREE consultation, we can tailor a marketing program that fits a seller’s specific need.
15. What type of marketing campaign is implemented on a specific auction property?
Yount Auction and Realty conducts an extensive advertising and promotional campaign for your property. The plan includes advertising, news stories, signage, web site applications, emails, faxes and illustrated brochures specifically targeting the property being auctioned.
The timely ads and brochure mailings create a sense of urgency and place the emphasis on that one property. Buyers are encouraged to view your property and prepare themselves to compete on auction day. Brochures are mailed to proven buyers and in some cases to real estate agents. On some properties Real estate agents are encouraged to bring their buyers and share in the commission. Anyone requesting the brochure from print ads also receives it. Printed advertising begins running about 3 1/2 weeks prior to the auction.
16. How do Sellers know that the potential buyers are qualified to buy the property being auctioned?
Yount Auction and Realty has a proven system to get potential bidders on a level playing field prior to bidding. All bidders must register prior to bidding. At registration they must provide some form of positive ID, such as a valid state issued Driver’s License, sign the Terms & Conditions agreeing to the rules of the auction.
Furthermore, if they are successful they will sign NCAR Form 620-T; Real Property Auction and Sale Contract, any other associated paperwork related to the property, and pay the required non-refundable deposit. Buyers agree to close within the timeframe as set forth in the Terms and Conditions of the auction. If they fail to comply they have agreed in advance to forfeit their deposit, be responsible for remarketing costs and any legal fees involved. At a Yount Auction and Realty auction, the auction sale is a solid sale. Our history proves out, our buyers close.