Greg Breitfelder, Comey & Shepherd’s licensed property auctioneer, provided me with these helpful pointers to guide buyers leading up to and at a property auction.
Registration ‐ Bidders typically need to register before the auction, this is a simple form to fill out so that the bidder recognizes and understands the terms and conditions of the auction. We have a bidder’s registration form that can be viewed on the Comey Website under our auction heading.
Sold “As Is – Where Is” – This is common, as it says, the property is sold to the highest bidder without any conditional requirements. At this point, the prospective buyer should have had an inspection previous to the auction. It is by far, a great advantage to your bidder and to you to have buyers get an inspection completed, doing this will either get buyers more excited or less excited based on the inspection findings.
Buyers Premium – Typically when an auction is being conducted, the number that the auctioneer is chanting is not always the bid price, buyers should be aware that if there is a “buyer’s premium” it will be added to the end of the winning bid. Many are confused as to why we have a buyer’s premium –this is the commission and it is split many ways. The seller does not pay a commission in an auction sale.
Down Payment ‐ Bidders typically need to have a down payment the day of the auction, it may be a flat fee or a set percentage of the final bid amount, be sure that the bidder understands that he or she should be able to produce a down payment the day of the auction. Too many times a bidder shows up with a personal check or a business check, these methods of payment are typically not allowed.
How much should I bid? It is always a good idea to decide how much you want to bid and stick to that number, it can be easy to get caught up in the emotion and bid too much. Your Cincinnati real estate agent can provide you with comparable sales in the are so you understand what the property values are in the area before you bid.
Your Commission ‐ Agents typically need to register their client, many times he or she would have to actually show the property to get credit for the sale. Make sure that you understand what hoops he or she has to go thru before getting commission for the sale. Let the Auctioneer tell you.
Not All Auctions Sell to the Highest bidder.
There seems to be confusion all the time with this. The only type of a sure sale is at an Absolute Auction, if the bidding starts, it will end with a final and successful bidder.
Reserve Auctions – Sell if they are confirmed by the owner of the house.
Minimum Bid ‐ auctions only sell if the minimum bid has been bid.
Hope this helps and feel free to contact me at any time regarding any auction questions you may have!
Today I went to Comey & Shepherd‘s quarterly meeting and learned a significant amount about how to assist delinquent homeowners who are behind on their mortgage payments. Since this is such a confusing topic I hope this clarifies the information for you.
There are four options for homeowners who are in this position:
1) Loan Modification- If the homeowner wants to try to keep their home, they can negotiate with the bank to try to come to agreeable terms. This is something that the homeowner can do themselves although there are professionals who will charge you a $1000 to assist with the process.
2) Short Sale- If you have 1 or 2 liens on the property this option can be available to you if your bank is willing to participate. If you have more than 2 liens it can be more difficult or not an option at all. Even if your property sells all deficiencies aren’t always forgiven so be sure to consult a realtor who specializes in short sales, a real estate attorney, and an accountant prior to making the decision to sell your property in a short sale.
3) Deed in Lieu of- Can only be used if there is 1 lien on the property. A hardship must exist, and the homeowner must provide a letter explaining the circumstances of the conditions of the hardship for bank review. Usually this option is exercised once a short sale has failed to unload the property. Essentially what happens is the homeowner signs the deed back to the bank, gives back the keys, and moves out of the property. Federal law does not allow the banks to come after the homeowner for deficiencies.
4) Sheriff’s sale- This is a last resort. Allowing your property to be foreclosed and be auctioned off on the courthouse steps can severely damage your credit and ability to obtain a Fannie or Freddie backed loan for a minimum of 7 years.
For more information on this topic please email me or call me and I can refer you to my colleagues who specialize in this area of Cincinnati real estate.
For all of the skeptics out there who are in a holding pattern trying to decide if it is a good time to buy property, I found this article from RIS Media that provides concrete data supporting this as fact. Mortgage rates are at record lows and many buyers are taking advantage. My Comey & Shepherd Real Estate Office reported an all-time record high number of showings 2 weeks ago.
Freddie Mac released the results of its Primary Mortgage Market Survey® in which the 30-year fixed-rate mortgage averaged 4.78%. The 30-year fixed rate mortgage has not been lower in the life of Freddie Mac’s weekly survey,dating back to 1971 for the 30-year fixed rate mortgage.
According to the National Association of Realtors, housing affordability reached an all-time high in February 2009 since the series’ inception in 1971. By region, sales surged by nearly a third in the Northeast and Midwest, but fell in the West. More good news for Cincinnati homebuyers and sellers looking to make a move!
For a free market analysis of what homes are selling for in your neighborhood or a neighborhood you are looking to move to. Please email or call me.
