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.
Cork-
In some respects you may be right. However, by utilizing the auction method of marketing we can predict when the property will sell & close. If the seller considers current market conditions, they can then estimate the dollars that will be available to re-invest upon closing. Our sellers consistently report to us that, considering the time-value of money, the predictablility of the sale date & value acheived significantly exceeds the "perceived loss" of that extra 4-5%. How long would you want your money to sit idle?
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.
Not necesarily. See above, and other posts.
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:
Cork-
Like you, I represent the seller. Our fiduciary responsibility is to the seller. By the same token, we must always treat our buyers with respect, otherwise we have no buyers for future sales. Our buyers will only pay what they are willing to pay. When was the last time you told a buyer they were paying too much for your seller's property? If the seller and buyer both agree to a dollar value by virtue of the bidding process, then everyone wins.
A ringman's job is to ensure that the buyer and seller both understand the process and the interest in achieving mutual goals.
Might as well throw in the liquor. Is there any difference? 
Huh???
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.
Cork-
We provide notice well in advance of the sale, and property information packets are available upon request.
In our experience, astute buyers are not interested in "our" appraisals. They are free to order their own before the auction, or after. The same applies to mechanical inspections (See below). We will make the property available on request. Astute buyers will know the market and consequently will apply their own value to the property. The only appraisal that is worth anything is the one that someone is willing to write a check for. Please bid accordingly.
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.
I'm sure that you are aware that there are actually two FAR/BAR contracts. One is with right of inspection/cancelation, and the other is "As Is". As indicated above, prospective buyers may visit/inspect the property upon request, and do so with or without the professional of their choice. We are selling "AS IS". Please bid accordingly.
Of course
no financing contingency if it's a cash deal.
Correct. Your bid packet should provided enough information for you to pre-qualify with the lender of your choice. Please bid accordingly.
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?
A copy of the Purchase & Sale Agreement, including these terms, is included in the bidder's property information package. This information will also be covered in opening remarks on sale day. Please bid accordingly.
It will probably sell for quite a bit less if buyer pay 10% buyers fee plus all closing costs.
No different than any other deal. Please bid accordingly..
Would also be nice to know
comparables - sold prices
not list prices.
Buyers typically research their own comps. We prefer this as there is never a question of legitimacy.
Does the buyer get a chance to review the contract prior to purchase?
If anyone knows these answers, please share.
,
My pockets must not appear deep enought - well they are not - but they don't know that. May be better if I don't - I have impulsively purchased before - thank goodness it was a wise move. Thanks for the info.
