The properties will sell for less than if the properties were listed with a realtor because the
buyer is paying a
10% buyers fee over the sales price to the auctioneer (
twice the standard commission.) Didn't find info if the seller also pays commission but assuming they don't so they can sell for at least 5% because the buyer is paying the commission and then some.
I will be surprised if the sellers take significantly less than they were prepared to take minus the 5% commission. If they get 5% less,
the seller pays 10% more. The seller gets the same and the buyer just paid 5% more.
From their website:
"Within all of us is a tremendous need to win. All interested parties are "forced" to make a decision. Excitement and motivation are used to the fullest with a public auction. Professionally trained ringmen apply continuous motivational pressure to the buyers to gain every dollar possible. This sense of excitement works to create the psychology of impending sale." :nono1:
Might as well throw in the liquor. Is there any difference?
The standard FAR contract has a clause which allows the buyer to get out of the contract if the
appraisal doesn't come in as high as the contract price.
How bout the right to inspect? In a standard contract, the buyer has the right to have an
inspection by a professional and the seller generally pays up to 1.5% in waranteed repairs and 1.5% for wood destroying organism damage.
Of course
no financing contingency if it's a cash deal.
How bout seller's
DOC stamps and title insurance? On $500k, sellers doc stamps are about $3500, buyer's doc stamps are about $1700 and seller's title policy is about $2550. Who pays that?
It will probably sell for quite a bit less if buyer pay 10% buyers fee plus all closing costs.
Would also be nice to know
comparables - sold prices
not list prices.
Does the buyer get a chance to review the contract prior to purchase?
If anyone knows these answers, please share.