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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.

Get Educated Before You Even VISIT Gallery and/or Brix: List of Units up for Auction

August 28, 2009 by  
Filed under Featured, Gallery, Schnitzer West

As of our most recent visit this afternoon, several potential buyers have already visited Gallery to tour some of the homes going up for auction.  Unfortunately, any of those buyers signing  in as a guest who will later want representation from an agent will be denied that request.  Therefore, it’s important for you to decide if you wish to have representation before you go to visit these two properties.   There are several important things to consider before making this decision.  We’ll be doing a more detailed post tomorrow as to what those benefits are, but we have had a client who was unable to bring us as their agent during the Lumen auction because we were not present during their initial visit.  They were very disappointed that they had to attend the auction without any professional insight.  The bottom line is that auctions can get very emotional, and you will need a ‘game plan’, with numbers figured on how much you’re willing to pay.  Most all units at Lumen sold for over $100k from the starting bid, and not all of those who won a purchase really made a “great deal”.

Schnitzer’s goal is to auction off enough units to get FHA approval, then adjust the prices on the remaining units afterwards to match current market value determined from the auction.  Not a bad strategy in this market.

In the meantime, here is a copy of what units will go up for auction at Gallery (we’ll post Brix tomorrow), and you can see some of them online by visiting our condo profile for the address here.  If you would like us to put together a game plan to take full advantage of the up-and-coming auction for either of these projects, please give us a call and see how we can help you.  Representation doesn’t cost you anymore money, but getting wrapped up in an auction without it could.

gallery-auction-list

Gallery in Belltown & Brix in Capitol Hill Off to Auction Sept. 27th

August 28, 2009 by  
Filed under Featured, Gallery

Schnitzer West properties going to auction for both Gallery & Brix.  Matt & Ben both twittered the announcements already, and you can view their posts below.

Matt, Ben…

Here’s your ‘pings’:

Brix Going to Auction September 27

Gallery Also Going to Auction September 27th

Gallery & Brix Condo Auctions

Both auctions have their own websites where you can get more detailed information:

There’s no doubt that auction buyers have walked away with massive savings.  Contact us for more information on what you should pay for these units if you’re looking to attend.

P.S. Don’t forget to buy your Mega Millions ticket.  Drawing for $325M is tonight!

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