Auctions
How An Auction Works
Rising inventory and longer days on market mean that Sellers have trouble attracting buyers even when they drop the price. Sometimes it takes months to figure out what combination of concessions will bring an offer. Auctions, by nature create competition amongst buyers, thereby creating an environment similar to that of a sellers' market.
An auction is an innovative and effective method of selling real estate utilizing an accelerated marketing process and providing open, competitive bidding. An auction is a “Win-Win” proposition for all parties involved.
Benefits to Sellers :
- Buyers Come Prepared to Buy
- The Sale Time Period is Accelerated
- Power Realty has Buyers Pre-Qualified by a Reputable, Local Lender Prior to Auction Day
- Quick Disposal of the Property Reduces Long-Term Carrying Costs Including Taxes and Maintenance
- Ensures an Aggressive Marketing Program that Increases Interest & Visibility
- Creates Competition Amongst Buyers therefore the Auction Price can Sometimes Exceed the Price of a Negotiated Sale
- The Seller knows Exactly When the Property will Sell
- Eliminates the Need for Numerous, Inconvenient Showings
- Takes the Seller out of the Stressful Negotiation Process
- Absence of Contingencies—Buyers typically Inspect Property Prior to Auction Day and Purchase “As Is” thereby Eliminating the Stressful and Time Consuming Post-Offer Inspections
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Benefits to Buyers:
- Smart Investments are made as properties are usually purchased at fair market value through competitve bidding
- The buyer knows the seller is committed to sell
- Auction eliminates long negotiation periods
- Auctions reduce the time to purchase a property
- Purchasing and closing dates are known
- Buyers know they are competing fairly and on the same terms and conditions as all other buyers
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Types of Auctions
ABSOLUTE AUCTION – An absolute auction is when the seller offers the property for sale and promises to sell it to the highest bidder, regardless of the final price.
MINIMUM BID AUCTION – At a minimum bid auction, the seller agrees to sell the property at a price that is equal to or greater than, a pre-stated minimum bid. All advertising will state the minimum opening bid so that a buyer knows, up front if the property represents a value to them. Sellers must be aware of all the costs associated with the sale of their property in order to properly establish the minimum opening bid.
RESERVE AUCTION – In a reserve auction, the seller “reserves” the right to accept or decline any bid. The high point to a seller with a Reserve auction is that the seller has no obligation to accept a price for the home other than one that is completely acceptable to them.
Auction Process
Attend an Open House held for the subject property and obtain an Information Packet about the property which will include an MLS Detailed Information Sheet (if applicable) or Property Information Sheet, the Sellers Property Disclosure Statement, the Lead Paint Disclosure Statement (if applicable) and the Terms and Conditions of Sale.
The auction is NOT contingent upon any mortgage financing so if you are not purchasing with cash (proof of funds will be required) or if you are not already pre-approved by a local, reputable lender, there will be a lender on-site at the Open House to register you and pre-approve you to bid. Please bring valid identification in order to register and to be pre-approved.
If you wish to have any inspector view the property, you should bring them to the Open House to check out anything of concern to you. An auctioned property is NOT contingent upon any inspections and is sold “as is”.
On Auction Day, the successful bidder will be required to place a deposit of at least 5% of the final purchase price or $5,000, whichever is greater. As no one knows what the final price will be, Bidders should bring to the auction a certified check in the amount of $5,000 payable to Power Realty and a personal check will be accepted for the balance of the down money.
An Agreement of Sale will be executed by and between the Seller(s) and the successful bidder at the conclusion of the auction. The buyer is then responsible for contacting a Title Insurance Company or an attorney to handle closing. Title to the subject property shall be good and marketable. Closing takes place within 30 days of the date of the auction and is customarily at the office of the company hired by the Buyer to handle closing.
In association with Kyle T. Kern, Auctioneer
Pennsylvania License Number AU002692L
AUCTIONS ARE FUN AND PROFESSIONAL!
LET THE EXPERIENCE OF PROFESSOINAL REAL ESTATE EXPERTS AND A SEASONED AUCTIONEER GUIDE YOU THROUGH THIS EXCITING EVENT!
WE HAVE
The POWER to Move You! |
