Real Estate Auctions are unique in experience, sound, and practice, but are more common than some people realize. Mainstream or non-distressed real estate auctions are rapidly growing around the country and are becoming the preferred sales tool for real estate sales utilized by Brokers/Agents over the next few years.
Love Real Estate & Auction Company only sells mainstream (non-distressed) residential and commercial properties. We do not sell properties in bankruptcy, pre-foreclosure, distressed, or low-end properties. We set and maintain a high standard of properties that we will offer.
THE ADVANTAGE OF
Buying at Auction
- It’s Fast! Auctions reduce time to purchase property
- Buyers know they are competing fairly and on the same terms as all other Buyers
- Auction date and closing date is known
- Properties are purchased at fair market value through competitive bidding
- Buyers receive comprehensive information on property via due diligence packet
- Buyers determine the purchase price
- Auctions eliminate long negotiation periods
- The Buyer knows the Seller is committed to sell
Love Real Estate & Auction Company believes in total transparency and provides potential Buyers with an abundance of information about the property being auctioned to satisfy all questions that prospective Buyers may have. We leave “no stone unturned” and remove all the “unknowns” from the auction process. Our policy is to provide a complete overview of the property, unmatched by other auction companies and traditional real estate firms. The information Love Real Estate & Auctions provides will eliminate any hesitation for Buyers to participate in any of our auctions.
BUYERS GET ALL FACTS UP FRONT
In addition to the customary sales information provided to prospective Buyers (professional photographs, tax records, utility information, and floor plans, etc.) Love Real Estate & Auction Company also provides prospective Buyers with much more critical information. We also provide a property appraisal, a property inspection report, a termite inspection report, a radon test report, a property plat map, a title, and lien search, along with ample access to the property for in-depth inspections before the auction.
Love Auctions Are For Buyers
Love Real Estate & Auctions understands a Buyers concerns and hesitation when purchasing real estate at an auction and we go to great lengths to provide every bit of information available to eliminate any concerns Buyers may have to make the buying experience easy and rewarding. In addition to the customary information typically provided to a Buyer when a property is being sold, we provide a property appraisal, a full blown home inspection report, termite inspection report, radon test report, a plat map, a title, lien search and more!
In certain areas in the country, real estate auctions are primarily for distressed properties, properties in foreclosure, or properties in bankruptcy. With these types of distressed properties, there is typically a lack of property information available to Buyers and limited access or the ability to inspect the property whatsoever. This total lack of transparency makes it nearly impossible for potential Buyers to feel comfortable about purchasing real estate at an auction which also drives the sale price down.
We Work with Your Agent
We are happy to work with your real estate agent and compensate them with the same fees they typically earn for a traditional sale. We think it is a good idea that potential Buyers who are unfamiliar with bidding and purchasing real estate at an auction work with a Broker/Agent to help you through the process. We want every Buyer to feel comfortable and confident with the Love Auction process. If you do not have an Agent, that is fine because our staff is always available to help any Buyer, or Agent with questions, information, and advice.
Types of Auctions
Auctions with a Reserve mean that the Seller has placed a minimum sale price the Seller is willing to accept for the property. The Reserve price is not revealed to the Buyers. Should a Buyer be the highest bidder at the auction, but the high-bid does not exceed the Sellers predetermined Reserve Price, the property will not be sold. Another form of a reserve auction is when the Seller places an “Opening or Starting Bid”, which is simply an auction with the reserve, however, the reserve is being disclosed upfront. This type of reserve auction lets potential Buyers know that the property will be sold, so long as the winning bid surpasses the Opening or Starting Bid.
Auctions without a Reserve are also referred to as “Absolute Auctions” meaning the property will be sold regardless of the price. A Buyer can win the auction so long as the Buyer places the highest bid. The Seller must accept the highest bid regardless of the amount. The benefit of this strategy is the confidence it instills among Buyers as they know the property will be sold to the highest bidder on auction day. Buyers come prepared to make their highest and best bid and most often, Buyer turn out is much better than the turn out for an auction with a reserve. Research also shows that auctions without a reserve will bring a higher sale price for the property than an auction with a reserve auction.
See Our Auction Calendar
Feel free to just get your feet wet – don’t think you have to go to your first auction ready to bid. You are welcome to attend any of our auctions to get a feel for how a Love Auction is conducted. Watch and listen, then move on to bidding only when you feel comfortable.
Before the start of the auction, our auction staff will spend some time addressing commonly asked questions and explaining how the auction is going to proceed. Once the bidding commences; our Auctioneer takes it slow to make sure that new bidders do not get confused or frustrated with the bidding process. Always remember, that a bidder may ask questions to the Auctioneer or a Love Auction staff member during the auction if you do not understand something or the bid amount.
You can also participate in most of our auctions through the internet, subject to registering and posting the deposit. Should you choose to attend a live auction and plan to bid, we strongly suggest you arrive early with the required deposit, if you have not pre-registered. Again, ask questions if you are unsure about our policy.
What To Expect On Auction Day
At our auctions, the property is open for a final inspection one hour before the auction. The property information package will be available before the auction and is also available on the Love Auction website. To bid at an auction, we suggest that before the auction begins, you should make contact with the Auctioneer or a Love Auction staff member who is known as a “Ringman” to let them know that you are going to be a bidder. A Ringman is a Love Auction staff member who assists the Auctioneer with the auction and by taking bids from the bidders and then passes those bids on to the Auctioneer.
To bid, simply hold up your bid card or bid paddle so that it is visible to the Auctioneer or the closest Ringman, or simply shout “yes.” The Auctioneer or Ringman will make eye contact with you and take your bid. The Auctioneer will immediately turn to another bidder and seek another bid. You can remove yourself from the process at any time by shaking your head “no” or saying “no” if the Auctioneer or Ringman turns your way.
Keep in mind that at the same time the Auctioneer and Ringmen are taking bids from the bidders attending the auction, Internet Buyers are bidding along with Buyers on the telephone are also bidding. A designated Ringman is assigned to take online and phone bids and relay their bids to the Auctioneer, who will announce the bids.
Should you be the highest bidder and the property is sold to you, you will be required to adhere to the terms and conditions of the auction as outlined in the Auction Agreement.
Buyers Premium & Closing Costs
In addition to the winning auction bid, the Buyers will also pay a “Buyer’s Premium”. The Buyer’s Premium varies from one auction to another and is clearly outlined in all the auction information packages and the Buyers registration agreement as well as the purchase contract. A Buyer’s Premium can range from 5% up to 10% which is calculated based on the winning bid.
For example, if the winning bid is $100,000 and the Buyer’s Premium is 5%, the Buyer’s Premium will be $5,000 and the purchase price will be $105,000.
The purchase price does not calculate other closing costs normally associated with the purchase of real estate such as legal fees, settlement fees, recordation and transfer fees, loan fees, insurance fees, utility deposits, etc. Closing fees also vary from auction to auction, county to county and from state to state. If you don’t have a real estate attorney, our staff can recommend an experienced real estate attorney who is familiar with real estate auction transactions.
Yes, a property can be sold prior to the auction long as the Seller and Auctioneer agree to cancel the auction and the Buyer agrees to complete the sale according to the original terms and conditions of the auction.
Buying real estate at an auction is relatively a simple process. The first rule is to be informed and prepared prior to auction day. Start by inspecting the property during one of the scheduled preview dates and carefully reviewing the information package that is posted online.
Buying real estate at auction ensures a quick sale and closing, eliminate long drawn out negotiations and provides the Buyer that the price paid for the property is true market value.
Real estate being sold Absolute or without a Reserve means that the property will be sold to the highest bidder, regardless of the amount.
Real estate being sold with a Reserve means that the Seller has established a minimum price the Seller is willing to accept for the property. If the bidding does not reach this price, the Seller is not obligated to sell the property.
Real estate being sold with a Minimum Bid means that there is a minimum price the Seller will accept. Bidding will start at a minimum price and the property will be sold to the highest bidder at or above the minimum price.
Suggested Opening Bid is the price that the Auctioneer recommends starting the auction bidding. After the opening bid, you can increase your bid in increments as called out by the Auctioneer until you reach your bid limit amount. Suggested opening bids are just that, “suggested” and they are not considered the same as a Minimum Bid Reserve auction.
Owners make a financial decision to sell the property in one day to minimize carrying costs, and circumvent drawn out negotiations typically associated with traditional real estate sales. In addition, Sellers may have underlining motivation to sell which gives the Buyer an opportunity to purchase the property at a potential discount.
You must register and post the required deposit as required on or before auction day and receive a bidder number in order to bid.
No. If a Buyer does not close for any reason, the deposit is forfeited as provided in the Auction Terns and Conditions and the Buyer may be responsible for other costs as well.
Closing generally occurs within 30 to 45 days after the auction. The auction terms and conditions contain the information regarding the closing date and location as well as the contact information for the closing agent.
Live auctions are conducted by open outcry bidding. As a bidder, all you need to do is hold up your bidder number and cry out your bid. You can also tell the Bid Assistant also known as a Ringman and the Ringman will alert the Auctioneer. Often, auctions are live and at the same time bidders can bid through the Internet and by telephone.
As soon as you are declared the winning bidder, a Love Auction staff member will provide you with a winning bidder acknowledgment to sign. You can then move to the contract table where you will execute the real estate purchase agreement. Once the paperwork is completed, the next step is going to the closing. The closing date is provided in the information package, but usually 30+/- days after the auction.
That depends on the registration deposit required to bid and the real estate purchase deposit should you be the winning bidder for the real estate. Since it is impossible to know what the final sale price will be before the auction, the auctioneer sets a reasonable registration deposit. If the registration deposit is less the real estate purchase deposit due to the winning bid, additional funds will be required. For example, it is predetermined that the deposit for real estate purchase is going to be 10% of the winning bid and/or final sales price and the sold for $100,000, the purchase deposit will be $10,000. However, when you registered to bid in the auction the registration deposit was $5,000, therefore an additional $5000 will be required. Typically, the additional deposit is paid within 24 to 48 hours after the auction.
Most auctions do not offer to finance. A Buyer should pre-qualify with a lender the same way a Buyer should pre-qualify when purchasing a property through a traditional real estate sale.
The Buyer’s premium is the fee paid by the buyer and is added to the highest successful bid to determine the final sales price.
Any property being sold Absolute will be clearly advertised as such. This information can be found in Auction terms and conditions.
No. Most buyers are not represented by a Broker/Agent and it is not required. However, Buyers will be required to sign a disclosure acknowledgment that the Auctioneer is the Sellers agent and does not represent you, the Buyer.
Broker/Agents must register each Buyer individually at least 48 hours prior to the auction using the Broker/Agent Agreement provided by the Auctioneer.
In most cases No. Love Auctions are typically both online auctions and live auctions and held at the property being sold or in our offices. Online bidding allows Buyers to participate in the auction from anywhere in the world. In addition, we can also take phone bids. No matter how a Buyers places a bid, the Buyers MUST be registered and have posted the required deposit before the auction commences.
In most cases, possession is usually tendered after the closing is completed. Typically, 30+/- days after the auction. However, it is not uncommon that possession is tendered prior to the closing, subject to a written agreement between the Seller and the Buyers.
Some auctions are Absolute auctions which mean that the property will be sold regardless of the price. Other auctions have a Reserve or Opening Bid requirement which means the Seller will not sell the property unless a predetermined price has been met.
If the auction does not meet the reserve price, the property will not be sold.
Yes, properties can be auctioned with tenants with existing leases, subject to local, state and federal regulations.
Yes, we offer several open houses dates and times and provide ample time for Buyers and Broker/Agents to thoroughly inspect the property. In addition, the property is open for inspection an hour before the auction begins.
Yes. We believe the show must go on! Some of our best sales have happened during inclement weather.
The auction will most likely take place at property location or at our offices. In addition, internet bidding and phone bidders will be available to maximize the number of potential Buyers that usually will result in a higher sales price.
Whenever you’re ready. With today’s busy society, any time is a good time. There are always Buyers in the market.
Most often there is a Buyer’s premium, however, all deal structures are determined on a case by case basis.
No, there are no hidden costs, everything is clearly outlined in the information package posted online and available at the auction.
That all depends on the day and the property. There are advantages for buying at an auction, such as the Buyers knows that the Seller really wants to sell, no long negotiations, the property is sold at market value with closing and ability to take possession 30+/- days after the auction.