Being Accountable: Sellers Responsibilities in a Real Estate AuctionDecember 3rd, 2010 by PA - Bloger
Though sellers will be greatly assisted by an auction company or a private auctioneer to walk them through the process, it is imperative for sellers to fully comprehend the entire course of action. According to Dynamic Auction Solutions, the seller is the one in command and needs to “understand, verify and participate with the auctioneer in setting the terms and conditions for the sale of their specific assets. Remember, it is the seller that controls the auction process by establishing these terms and conditions with the auction company. The seller is able to apply them to all prospective buyers for their property under one uniform set of rules.”
There are several areas involved that are the responsibility of the seller. This would include deciding on a ‘reserve’ bid, meaning the seller can execute a ‘reserve’ or minimum bid condition for their property. From there, a seller can accept or reject the high bid or refuse any bid until the property is declared ‘sold’. Costs that sellers are responsible for can vary depending on the size of the auction, property value, scope of marketing campaigns, commissions to the auction company, preparing/repairing the property for auction, etc. These are all decided upon through a contract with the chosen auction company or private auctioneer. The seller also has input on the venue or site for the day of auction. And though properties are sold in “As is” condition, the seller must make an honest representation of the property for auction and provide full disclosure. Any false statements or withheld information is a liability to the seller.
According to Dynamic Auction Solutions, the most important responsibility of the seller is to maintain realistic expectations and dedication to the process. “No auction company, no matter how high their level of service, degree of marketing effort, or promotion skill, can conduct an effective and successful auction to sell the property of a seller that is uncommitted to the auction process and unrealistic in their expectations,” they report.
With auction sales on the rise, commitment and motivation for sellers do not seem to be a problem. Properties across the real estate spectrum are being sold via auction. From Tranzon’s Colbert, Georgia hybrid auction of an 18-hole golf course on 135+ acres with sealed bids due December 15, to Williams & Williams auction of a 1965+ SF single-family home in Kennewick, Washington on December 14, sellers of every kind of property in the real estate market are flocking to the auction mode of sales.
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