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TN2FLA

Beach Lover
Jan 12, 2006
73
1
41
Dune Allen
Babyblue said:
Well, I think the auction is a good thing. I will be there. I think the market will heat back up and the people who are buying up the property now that can hold on to it will be glad they did when the market heats up. :D I just think the negative comments about the auction are worried realtors. :eek: There are always good deals to be made at auctions. The people selling their properties know they have to come down off the ridiculous prices that most people are trying to get for properties that have been for sale for a year. When the prices go down there is a deal to be made.... I will be there and maybe a year from now I can flip the property I bought for a deal at auction to the negative onlookers :dunno: for my profit. :clap_1:

There is no reason for an auction of this type to worry realtors. Realtors can register their buyers and get a little piece of the pie if their buyer wins at the auction. It is just another way for realtors to make some money. I think some people are intimidated by those who think out of the box...
 

Babyblue

Beach Fanatic
Mar 1, 2006
526
6
Seagrove Beach
You are right. I was just referring to the realtors that were negative about the auction. I agree they can bring people to the table and get a piece of the pie. That is why it is such a great idea everyone wins the seller sells their property and the people helping get their share.
 

Cork On the Ocean

directionally challenged
Boy, what a thread this started. :lolabove: Thanks Joe, was tied up yesterday.

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.

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.

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.

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 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:

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. :rotfl: 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.

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?

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
 

Babyblue

Beach Fanatic
Mar 1, 2006
526
6
Seagrove Beach
If you think about it Cork you are not paying more to close! I don't know if you are familiar with this particular auction process. The properties will be reduced significantly from the original prices they were listed on the market for. So the buyer will still come out nicely. An auction is not to trick buyers or pressure them if that were the case they would not be around. I think you may need to contact the companies to ask these questions or concerns you may have before saying something that may not be true to this particular auction.
 
Cork On the Ocean said:
Boy, what a thread this started. :lolabove: 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. :rotfl: 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


***You are absolutely wrong here. Read my earlier posts! The bid price plus the 10% buyer's premium is added to create the sales and/or contract price.

i.e.-
Bid Price-$600,000.00
Buyer's Premium-$60,000.00
Contract price-$660,000.00

***$660,000.00 is recorded in the county record. As with any other deal, the docs are not recorded as part of the "costs". No "loss" of value!


***You folks have a great day. I hope to see you all at the auction. Please ask Higgenbotham Representatives anything you would like. Education is the key. The auction process is open, fair, and available to anyone. There is no Hocus-Pocus here.

Scott O...
 

Cork On the Ocean

directionally challenged
HighBidder said:
***You are absolutely wrong here. Read my earlier posts! The bid price plus the 10% buyer's premium is added to create the sales and/or contract price.

i.e.-
Bid Price-$600,000.00
Buyer's Premium-$60,000.00
Contract price-$660,000.00

***$660,000.00 is recorded in the county record. As with any other deal, the docs are not recorded as part of the "costs". No "loss" of value!


***You folks have a great day. I hope to see you all at the auction. Please ask Higgenbotham Representatives anything you would like. Education is the key. The auction process is open, fair, and available to anyone. There is no Hocus-Pocus here.

Scott O...

Scott,

Thanks for the clarification. So sounds like as long as bidder adds 10% plus closing costs (sellers doc's and title insurance) to bid price and they have no problem with appraisal, repair/as is issues, that it won't affect our values. Assuming from your language that it's only recorded in county records, not MLS? Will you be posting the sales on the board? I'm sure everyone is interested. Have a client who isn't going to register but stopping by to check it out. If they sell below listed comps with all expenses considered and full disclosure, we'll applaud the process and bring our buyers to your next one. :clap_1:
 

Cork On the Ocean

directionally challenged
Babyblue said:
If you think about it Cork you are not paying more to close! I don't know if you are familiar with this particular auction process. The properties will be reduced significantly from the original prices they were listed on the market for. So the buyer will still come out nicely. An auction is not to trick buyers or pressure them if that were the case they would not be around. I think you may need to contact the companies to ask these questions or concerns you may have before saying something that may not be true to this particular auction.

Hi Blue, I must admit that I'm not familiar with this particular auction's process. That's truly why I asked. You didn't say whether one of them are yours but I would guess the beautiful gulf front lot is yours :D and I agree that the lots will be significant (at least 8%), putting that lot at $2,240,000 which would be the same as what it's listed at but the buyer will pay approx. 13% above the sold price which means to get it at the current full listed price, they'd have to get it at $2,118,450 and that would have been the same (approximately) if they gave full price. Since many homes sell for 98% of asking, if I were buying it at auction, I personally wouldn't pay more than $2,076,081 which would be about the same as contract negotiation situation.

To answer you question, I represent both buyers and sellers depending on their wishes. When I act as a transaction broker, I try to establish a win-win situation for both the buyer and seller.

I was just referring to the realtors that were negative about the auction. I agree they can bring people to the table and get a piece of the pie.That is why it is such a great idea everyone wins the seller sells their property and the people helping get their share. I will be there and maybe a year from now I can flip the property I bought for a deal at auction to the negative onlookers :dunno: for my profit.

If I'm representing a buyer, then I want to make sure they win as well.
I have discussed the possibility of using an auctioneer with one of my sellers who I have sole representation with, so don't get me wrong, I'm not against them. I have learned a wealth of info in this thread and it was my understanding that I was directing my questions to the company that's conducting the auction because they posted it here and represented themselves as a "professional ringman". If you're the owner of that wonderful lot, I truly wish you luck and if you get your price, my seller and I will be looking at the process closely as an option. Good Luck at the auction and keep us posted.
 
Cork On the Ocean said:
Scott,

Thanks for the clarification. So sounds like as long as bidder adds 10% plus closing costs (sellers doc's and title insurance) to bid price and they have no problem with appraisal, repair/as is issues, that it won't affect our values. Assuming from your language that it's only recorded in county records, not MLS? Will you be posting the sales on the board? I'm sure everyone is interested. Have a client who isn't going to register but stopping by to check it out. If they sell below listed comps with all expenses considered and full disclosure, we'll applaud the process and bring our buyers to your next one. :clap_1:

Cork,
Thanks for the questions you've presented in the last day or so. Sometimes we don't truly realize what people "don't" understand unless they really challenge us to explain ourselves. You have a good understanding now of what we do, & how. Saturday will be fun.

With regard to values, at this point I won't even hazard a guess as to where they end up compared to comps & asking prices. There seems to be an awful lot of property on the market in that area. It won't last long but it will probably weaken the bid price. What you can be sure of is that the buyers will have a stopping point, and only they really know where that is. As I said before, in the past I have seen auction values both above and below area comps and appraisals. The buyers will tell us what the property is worth right now. We'll all be a lot smarter on Saturday afternoon.

We don't utilize MLS services as we sell all over the country and consequently couldn't be a member of each group. 30-A Auction Services may choose to, though. If so, then I would applaud it.

Get registered by your visiting buyer by Friday afternoon. It won't cost you anything but preventing the risk of lost opportunity. If your buyer should decide to jump in & buy, I couldn't pay you unless you are properly registered. Contact Karen in my office for a BP form. She'll fax it right out. (800) 257-4161

Long day tomorrow. Please contact me on my cell should anyone have any questions. (863) 581-9306

See you at the auction.
 
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