|
Real Estate Auctions
Now, more than ever, auctions are defining the real
value of Real Estate. Buyers and sellers are brought
together to buy and sell in an efficient manner. As
a Buyer, there is no waiting to see whether your
offer for a property will be accepted by the Seller
or trumped by some other buyer. As a Seller, there
is no speculation as to what price your property
will ultimately bring or la long process to sell
your property. Real Estate Auctions are successful
for the participants and are a lot of fun!
Our
Auction Design
Our auctions are planned around Several Sellers
(Usually Builders and Financial Institutions)
offering their properties to Several Buyers. Most of
the properties offered at auction are residential or
small multi-family homes located throughout certain
geographic areas in Colorado, especially along the
Front Range. Other areas in Colorado may be offered
too! This type of Auction Process allows multiple
sellers to offer a greater variety and number of
properties to all types of purchasers seeking
different types of values.
WRE’s type of auction is Open-Outcry which is quick,
decisive and a lot of fun. Typically, the properties
move fast. Be ready to see a lot of excitement as
bidders shout out their offers - openly competing
with each other.
Our
Offering Format
Properties offered at WRE’s Auctions are offered
“with reserve” (where the seller’s minimum asking
price is established). Some bids may be “subject to
confirmation”. This is where the seller reserves the
right to decide whether or not to accept the bid.
Sometimes, the actual sellers will be on hand to
confirm the bids at the Auction. Sometimes, they
will not. On each property, we publish a “Starting”,
or suggested opening bid alongside a “Highest
Value” of the property. The starting bid is a
guideline where the Auctioneer will start the
bidding process. The highest value represents the
highest value whether a listing price, broker price
opinion, appraised value or actual sold price which
occurred in the last 12 months. NOTE: this could
vary due to the length of time the house has been on
the market.
Auction Preparation
Real Estate auctions are usually advertised by WRE
one month before the actual auction date. This
provides prospective buyers with an overview of the
properties that are available and their locations.
During this pre-auction time prospective buyers are
encouraged to attend open houses at any properties
to be auctioned that catch their interest. You can
contact us to find out when properties are available
for inspection. Buyers should inspect available
properties; determine the condition of a property;
determine their own ability to buy; become
pre-qualified for financing; and ask any questions
they deem necessary prior to the auction. When you
register and receive your bidding packet at the
Auction, you will certify that you have inspected
any property or properties that you are bidding on
and that you understand that properties are sold “as
is” at the auction.
Be
Ready for Action!
If you’ve never attended an auction before, then you
should be ready for a fast-paced adventure! It may
take only a few minutes to sell a property when
buyers have done their homework and know what
properties they want. So be prepared and be on time
for the auction. You can show up early on the day of
Auction and attend a demo auction that is run by the
actual Auctioneer. Let our Professional Auctioneer
show you how it’s done!
Registration
It is best if you pre-register for the Auction on
our website no later than 48 hours prior to the
Auction Day. That is the most efficient process for
you. It also helps you to pre-qualify for a loan so
that you can bid on property(s) at the Auction.
Pre-registering allows you to print up your
registration forms and show up with them completed
and in-hand. By pre-registering, you will be able to
enter the Auction with a minimum of fuss, receive a
bidder number and start having fun!
If you can’t pre-register, come on down to the
Auction anyway! We’re happy to register you at the
Auction. Whether you pre-register or just show up at
the door, there’s no cost to attend the Auction!
When you come to the Auction you will be required to
produce a driver’s license or other photo-id
documenting your identity consistent with the
registration forms (whether you pre-registered or
register at the door).
What
is required in order to bid at the Auction?
In order to receive a bidding number and be
authorized to bid at the Auction there are two
requirements: a) you must have Earnest Money of
$2500 to put down on any property that you have the
winning bid on; and, b) you must be pre-qualified
for a cash sale or for a loan from a lender or
financial institution. In order for your final bid
to be accepted as the winning bid, we will confirm
that you are pre-qualified for a cash sale or for a
loan in an amount that is sufficient to contract for
the property.
How
do I meet the Earnest Money Requirement?
To meet the earnest money requirement, simply bring
a Cashiers Check from your bank for $2,500.00, made
payable to yourself. If you win a bid on a property,
you will deposit this Cashiers Check with the Title
Company (on hand at the Auction) in their escrow
account to hold pending closing on the property.
Your deposit will remain safe in the Title Company’s
escrow account until the closing date.
How
do I meet the Pre-Qualification Requirement?
You can meet the requirement of being Pre-Qualified
for bidding at the Auction in either of two ways:
1. Being Pre-Qualified for a cash purchase by
bringing adequate proof of available cash funds for
the property you bid on. Such proof can be a current
official bank statement showing the available cash,
stocks and bonds, a bank letter of guarantee, etc.
2. Being Pre-Qualified for a loan means bringing a
letter from a lender or financial institution
stating that you are pre-qualified for a loan for
the property you purchase, with a stated maximum
loan amount. If you do not have an existing lender,
you will be referred to our Preferred Lender as part
of the process when you Pre-Register through our
website. If you are not Pre-Qualified for a loan
prior to the day of the Auction, you will be
referred to our Preferred Lender when you show up at
the Auction site to register. Our Preferred Lender
will be prepared to work with you to Pre-Qualify you
on-the-spot for a loan at the Auction, so that you
can obtain a bidding number and bid on properties at
the Auction.
If you have any questions about being Pre-Qualified
for bidding at the Auction, please contact us well
in advance of the Auction. Our professional
representatives will work with you to make sure that
you meet this requirement for bidding before the day
of the Auction.
The
Bidding Process
Our Real Estate auctions begin promptly on time! The
auctioneer always will begin with opening statements
reviewing the sale terms and bidding process as well
as important disclosures pertaining to the auction.
If there are any questions, the auctioneer will
address these prior to the actual bidding.
Auction Staff
At the auction, the auctioneer’s “Ring Helpers” will
help him identify and record all bids for each
property that is offered. The Ring Helpers working
in the audience will help with any questions by
potential buyers, and will identify actual bidders
to the auctioneer. In the event any “accidental”
bids are made, the ring staff will notify the
auctioneer and his recorder of the mistake
immediately and any corrections will be made
instantly by the auctioneer so that all buyers are
kept informed about the bidding.
The
Sale
Auctioneers move quickly and so does the actual
bidding process. Once a final bid is determined, the
Auctioneer will say “sold”. In order for a final bid
to be accepted as the winning bid, we will confirm
on the spot that that the final bidder is
pre-qualified for a cash sale or for a loan in an
amount that is sufficient to contract for the
property. At that point, the final bid becomes the
Winning Bid for the property and that is announced
by the Auctioneer. All bidding on the property is
then stopped and the winning bidder will meet with
our sales agent to execute a contract to purchase
the property and deposit the earnest money for the
property into the Title Company’s escrow account to
be held pending closing on the property. Closing can
occur as little as two weeks after the auction.
|
