BUYING AT AUCTION
A real estate auction is an innovative and effective method of buying real estate; there are many benefits and unique opportunities available when buying real estate at auction. It is an intense, accelerated real estate marketing process that involves the public sale of any property—including those that are nondistressed—through open cry as well as online bidding which we offer as Timed Bidding which last a number of days, bidders go through a pre-registration process, once approved they can bid from their home/office or mobil device. Our staff is there to do all we can to make the process a positive experience. One advantage is knowing the seller is fully committed to selling, therefore eliminating long negotiation periods and reducing the time involved in purchasing the property. Buyers are able to determine the sales price and purchased at fair market value through competitive bidding.
PRIOR TO AUCTION
The primary difference between buying real estate at auction verses buying real estate conventionally is that at auction, you do all inspections and prepare your financing prior to coming to the auction. A real estate auction is a sale of property in as-is condition with no contingencies so preparation in advance is important to allow the buyer to bid with confidence. Buyers are responsible for making all inspections and evaluating the property for their protection. In the days leading up to the auction you will want to find answers to your questions regarding the property, know what the auction process is and when payment is due. You can view the property at our open house dates, which are posted on our website or call for private showing. Please feel free to review our Real Estate Terms & Conditions or call our office for assistance if you have any questions.
DAY OF LIVE AUCTION OR ONLINE AUCTION
You will need to register for a bid number and review the bid packet for the terms and conditions of the auction. A live auction will begin promptly so arrive in plenty of time to make final inspections as well as pre-auction announcements (terms, conditions and any last minute changes to the auction) The bidding is fast paced so be prepared. In order to make a bid you will need to get the attention of the auctioneer by raising your bid number or waving your hand or simply by saying yes. If you are unsure if your bid is the high bid, do not hesitate to ask one of the bid assistants or the auctioneer to confirm this. The auctioneer wants to provide every opportunity for you to place your bid and will not let you bid against yourself. The online bidding process will not be as fast paced until the last few minutes of the auction coming to the end, every bidder must pay close attention making every second count if they are wanting to be the winning bid.
THE SUCCESSFUL BIDDER
At a live real estate auction, once the bidding stops the Auctioneer will confirm the sale and recognize the high bidder. Reserved auctions are subject to seller’s approval of the bid attained and a minimum bid auction will start at a reflected price and expected to rise in increments until an acceptable bid is approved. The high bidder when approved or when the Auctioneer says SOLD will then complete the Purchase Agreement and sign any additional forms and make the required Earnest Money Deposit. This
payment can be in the form of personal or business check, only at closing must the buyer bring certified funds. Closing of the property will take place in 30-45 days from the day of the auction. Generally, property is conveyed free and clear of all liens and encumbrances and closing is not contingent financing, appraisals or inspections. Payment of online auction funds is within the terms when registering.
PAYMENT & CHECKOUT
Payment is due in full on auction day. Terms are cash, check or credit card. We accept Master Card, Visa & Discover. Once the Auctioneer says SOLD, the item(s) is your responsibility to secure. The auction company or the seller are not responsible for loss/theft or damage of your items purchased If you need help with removing the item, we can recommend local movers to assist you if needed.
If you are unable to attend a live auction both real estate and personal property auctions, you can request the auction company to enter bids on your behalf by submitting an absentee bid form 24 hours prior to auction starting time. The Auctioneer will execute absentee bids competitively and begin the bidding at 1/2 of your maximum bid. If your bid is successful you will be obligated to pay the hammer price plus a 10% Absentee Fee on the purchase price within 5 days as well as any packing and shipping costs when it involves a personal property auction. Telephone bidding is available by request only and subject to availability of lines.
FOR LICENSED BROKERS & AGENTS
Munsch Real Estate & Auction, LLC. has been associated with the Hays Board of Realtors and Hays Multi-listing service since 2006. We welcome and encourage agent-broker participation at our auctions, whether you as a professional are representating a buyer or referring a listing to us. A loyal partnership with Munsch Realty & Auction, LLC, can be rewarding and profitable, and add value to your business portfolio. There are several options to participate in the auction method of marketing as follows;
REGISTER TO REPRESENT A BUYER
We will partner with any licensed broker or agent who registers a buyer who they represent , the broker of the agency must register their buyer no less than 24 hours prior to the auction.
REFER A PROPERTY FOR AUCTION
For referrals the broker will complete the broker agreement form, with this agreement between brokers a cooperation fee is paid to the brokerage if their buyer is the successful bidder and closes under the terms of the contract.
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