Cincinnati Real Estate: How to buy Property at an Auction
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!
At The Alison Moss Group, Cincinnati is more than a city to us–it’s our hometown. Since launching in 2008, our clients have depended upon us to lead them through the home buying and selling journey. We are the go-to resource for all of your needs before, during and after the sale of your home.