When you hear the word Auction it may cause some anxiety. So to understand the auction process we have outlined some of the information for you to make the Auction process seem more appealing to the seller.
Required by law at least 30 minutes prior to auction your agent is to show you the documentation regarding the property. When the auctioneer begins he/she will outline all of the detailing the information: the state laws applying to auctions in general; the rules applying to this particular auction, including whether vendor bids and/or co-owner bids will be used.
The starting bid:
The Auctioneer will then ask for the opening bid setting the amount for which all bids must rise such as in $5,000 increments. Alternative amounts can be bid–such as $1,000–however it is up to the auctioneer’s discretion if the amount is accepted. Calling Going once, Going twice, three times: Once the reserve price has been hit the property is then conceded “on the market” and will be sold at the highest bidder. If the reserve price is not hit the auctioneer will approach the seller and ask if they would like to sell the property at a lower price. When the final bid is made and the seller is happy with the price the auctioneer will then announce Going once, Going Twice, three times. If no more bids are put in place the auctioneer will announce the property SOLD.
Time for the money:
Once the property has been announced SOLD an immediate deposit is required usually 10% of the purchase price is required after the auction is complete. The balance is then to be paid usually set by the seller at 30, 60 or 90-day period. It is important to remember that the more flexible you are with the settlement time the more appealing your property will appear to the buyer. The sale will
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