Yes, everyone knows what FAQs are right? Needless to say, we get questions from buyers, sellers, and agents about the real estate auction process every day. The long and short of it is that auctions are a win-win-win for all three of the major parties.
But this post is concerned with buying. If you are in the market for a luxury home, then buying at auction is the smart way to buy your new home.
Why? Because you pay what the property is worth on auction day – the true market price. After all, the other bidders will be in the room and you can see what every buyer is willing to pay on that day. These are the most frequently asked questions in regards to buying a luxury home at auction.
Must I bid in person? No. Bidders at our auctions can bid live of course, but also by phone or internet, or you can assign a proxy to represent you.
What do I need to qualify? To gain approval for bidding, you simply need to submit your registration form, wire a deposit and be pre-qualified for the bidding range of the property. If you don’t win the auction, your deposit will be returned the next day, and you are not out any money.
Can I purchase prior to the auction? Our clients are fully committed to the auction process; however, the listing agents have a duty to present all offers. In some cases the seller will consider a pre-auction offer if it is strong enough to deter them from the auction competition. But you better come in at asking price or very close.
Are there any bidder incentives? In most of our auctions we offer bidder incentives to reward buyers for opening their bidding at a certain amount. The incentives are paid to the winning bidder as a reduction on the purchase price. The price thresholds where the incentives are offered and the discounts awarded vary from auction to auction.
What is a buyer premium? A buyer premium is an amount paid by the bidder above the high bid, which typically funds the marketing and execution expenses related to the auction and the auction firm itself. Our buyer premium is 10% minus bidder incentives.
Interested in buying a luxury property at auction? Or just want to see what we have to offer? Click below for an Auction Alert™ for upcoming auctions delivered to your inbox.