Boy, what a thread this started.
Thanks Joe, was tied up yesterday.
***No kidding! <<G>>
***Everyone, please forgive me for not being savvy enough with this to properly change the colors of my text. I'm not too bright so I'll use the asterisks to separate my text. Either way, here we go...
***
***Cork-
I mentioned earlier that I didn't want to get into a debate, but here I am. I am leaving early tomorrow morning and probably won't be able to carry this any further tonight or tomorrow. If you would like to help any of your clients please see me at Cafe 30-A about 10:00 Saturday morning. My name is Scott O., and I'll be easy to find. You may also reach me on my cell at (863) 581-9306. I'm here to help you understand the auction process.
Cork-
Like you, I represent the seller. Our fiduciary responsibility is to the seller.
As Joe mentioned, our fiduciary responsibility may vary depending on the representation that the buyer or seller chooses. We may exclusively represent one client and if that client wants to buy something that we have listed, there's a vehicle to transition to transaction brokerage.
***Understand and agreed.-(Highbidder)
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?...
I have serious ethical concerns with pressuring anybody into anything as your website notes and I simply don't do it. I also have problems with lack of disclosure. I don't need to tell a buyer that they are paying too much for my listed properties because I perform a market analysis and recommend what they should ask. If they don't listen and refuse to price their property to sell, I simply don't list it.
***A broker's opinion of value is merely that. How many listings are currently sitting idle in your area? Higgenbotham is only interested in representing the property accurately. The buyers are not dumb. By virtue of their bidding they will tell us what the values are.
***Value is a matter of desirability tempered by supply & demand.-(Highbidder)
Lastly,we still don't have an answer on the appraisal issue. Suppose the house doesn't appraise for what was paid? Any contingency? If not then the buyer could lose their deposit through no fault of their own if they don't have the additional difference between the sold price and the appraised price which the lender will base the loan on. I would feel awful in a situation like that.
***We consistently show market values at our auctions. I cannot remember a property failing to close because someone paid too much. Conversely, I can tell you that some very desirable properties have sold well above original asking price and area comps. Again, Supply and Demand. Again, see my earlier posts. You could always have an appraisal done prior to the auction. Bid Accordingly.-(Highbidder)
Regarding co-broke commissions, I have considered registering clients and that's what spurred my questions to you. I wanted to advise them of the risks and costs before doing so and it wasn't disclosed on your website. I have to say that I am happy to learn of the reality of auction purchases before my client was in that frenzied environment that you create. This entire thread caused me great concern and I would have to tell my buyers that they are paying all closing costs plus an additional 10% plus the appraisal and inspection risks. Who gives access when a buyer wants to have a professional inspection? Is it on lockbox?
***There is no inspection risk. Anyone may bring the professional of their choice to inspect any property at their convenience. A 30-A Auction Services representative will gladly provide open, unfettered access. With respect to "frenzied", the auction process is, by nature, exciting and energetic. We don't put guns to anybody's head though. If you want in, just raise your hand and bid accordingly.-(Highbidder)
There is nothing wrong with an auction, if the buyer is very informed of the contract and the property, and he or she knows there is no out to the sale.
Ditto! :clap_1:
***We agree! Twice! Higgenbotham Bid Packets are very comprehensive. It is the buyer's responsibility to confirm, but we work hard to provide only the most accurate and up-to-date information.-(Highbidder)
I think some people are intimidated by those who think out of the box...
Believe me, there's nobody that thinks out of the box more than me.
so that's not the case. As you mentioned, there is probably more commission if we bring our client to this auction than in a standard deal so our motives are merely to put everything on the table. Not just the fluff. A true buyer would be happy to know that they need to add up to 13% in closing costs and auctions fees which is significant. ie: If you win the bid at 600K, you need to add about $67,800 to you winning price. Any real potential buyer will take this info and consider it when bidding. If they don't, they would be a fool. They would also want to know about the appraisal and inspection issues. If that home goes for 100K below comps, then it might be a good deal if it appraises and has no structural or termite issues.
***Only $60,000 would be added. Just like with your type of deal, the docs stamps have nothing to do with sale price. Can't inflate that one.
I noticed that TN2FLA registered on the board about a month ago and that baby blue registered in the last day. I can't help but wonder if you have an interest in the sale?
***Not that I know of. No idea who that person might be.
Thanks for your understanding that we are trying to do what's best for our buyers and the So Wal market in general. Keep in mind, that a $600K home sale price where the buyer is actually paying $667,800, will be recorded as a $600K sale. That brings down the comps and the value of our homes. It should be recorded as $667,800 but it isn't because the extra $67,800 is hidden in costs