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Should You Have Agent Representation at an Auction?

August 29, 2009 by  
Filed under Featured, Gallery

Gavel+And+BooksThe most important thing to remember about attending an auction is just to make sure you are accompanied by someone who knows real estate.  The goal is to win an auctioned condo at a low price, but also be the highest bidder among everybody else.  Also, attending an auction for real estate still requires that you have gone through the financing process (unless you’re paying cash of course), and you’ll still need to make sure you account for closing costs.  Here are a few basic considerations to look at before deciding on if you plan to work with an agent or not.

Know the laws on how auctions operate – For Gallery and Brix, the company organizing the auction is from California, therefore it may be a good idea to see if there’s any differences between how auctions operate.  Also be sure to know how much cash the auctioneer requires you must have if winning a bid,

Secure your financing – Before you can even bid on a condo, you’ll need to know how you can afford by getting prequalified.  Also, auctions vary on how much you will need to have in cash (usually a cashier’s check) upon winning a bid.  This is usually done by percentage, but you will need to be prepared before the day of the auction.

Analyze the real estate’s value – Once you’ve secured your financing and you’ve familiarized yourself with what is required by you under the assumption you will win, the next step is to determine the market value of the properties up for auction.  This is when you may want to seek the advice of a professional Realtor.

Know your maximum bid – Your maximum bid should only be calculated after you’ve familiarized yourself with how the auction will operate, have secured your financing, and have analyzed the property’s market value.  Then, you should know the maximum amount you are willing to bid before the auction begins, and try to avoid getting caught up in an emotional bidding war by sticking to your predetermined limit.

If you are considering agent representation, here is what we as your agent will do for you:

  1. Obtain a copy of the purchase and sale agreement, making sure you understand it.
  2. Assist you in coordinating the right financing and appraisal.
  3. Provide you with comparables, educate you on the market, and offer an opinion on maximum value.
  4. Assist you in understanding the auction requirements and what deposit is required.
  5. Keep you focused during bidding!

Are you planning on attending the acution for Gallery/Brix?  Let’s make a game plan for you!  Call or email us today to get the ball rolling.

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