RULES OF ENGAGEMENT AT ARIZONA FORECLOSURE AUCTIONS BE INFORMED AT ALL TIMES
I am sure many of you are having auctions in your local area. I wanted to repost my findings to share with the AR community. I will be closing on an auction property for my buyer with private money. Then, use the equity spread for their down payment. Please share with other professionals.
Benefits for the Seller to sell property at an Auction:
- Get the highest amount for the property since buyers compete against one another. People do not like to lose so they end up over bidding. Emotions take over the common sense side of the business. The auction creates excitement at the same time.
- The auction is fast and delivers immediate results properties close within 30 days. It provides quick losings for the seller. Auctions have the marketing down to the science to bring large crowed.
- he starting price is low leaving it to the auctioneer to start driving up the price as people bid against each other. The auction sells properties for much more than was expected by the seller.
- The carrying cost of the property is decreased compared to traditional listing since the property is sold 30 days after auction. These costs included the following: taxes, utilities, insurance, landscaping, etc.
- Property is being sold AS-IS. This is a huge advantage to the seller. Seller and buyer waive all contingencies on the property.
- Seller is able to accept their bottom price at auction. The minimum bid is set before the auction date.
- Seller is always in control of his/her property. This eliminates negotiations between seller and buyer in a traditional real estate method. This method takes time and money.
- An Auction company will walk a seller from A to Z through the entire process including at closing.
Benefits for Buyers to Purchase at Auction:
- Buyer is setting own market Market Value on property at purchase. Buyer is not relying on realtor or appraiser to set the price.
- Avoids long negotiations between Seller and Buyer. One can have it NOW. Most auctions last less than two hours depending on number of properties that day.
- Auctions set a level playing field for every buyer. The highest bidder wins.
- Auctions allow ample time for buyers to review property and do any research on the property so one is prepared at auction. One should only bid to their maximum. A bidder must avoid getting caught up in the moment. Common sense must prevail at Auction and not one's emotions.
Make the Call, Set the Plan, Do the Deal$!
Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities. The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona. You can listent to past shows, or stream on-line.