Monday, October 16, 2023 / by Shauna Norris
What do you think of when you hear the words "real estate auction"? Hi, I'm Shauna Norris, broker-owner of Venture Group Real Estate and Venture Group Auctions, both in Neosho and Joplin, Missouri.
Often, when people hear the words "real estate auction," they think that there must be something wrong with the property or that it's a foreclosure. However, that's no longer the case. Although those properties are still offered at auction, we also offer properties that are in great condition at auction. Here's why:
Sellers choose the auction route for many reasons. Some sellers are on a time crunch, while others have contents to sell along with the real estate. Sometimes, a seller chooses an auction because it can be offered in multiple tracts. It's essentially a condensed marketing version of a traditional listing, where we compress everything we do for a traditional listing into 30 to 45 days.
Now, for buyers, here's what you need to know:
You're welcome to view the property prior to the auction.
You can also get inspections done before the auction.
We encourage agent participation, so feel free to work with your agent.
Once registered for the auction, come to the auction site on the day of the auction with your driver's license to get a bidder number.
We usually conduct the auction on the front porch or in the side yard, depending on the season.
You'll have the opportunity to ask any questions you have during the terms and conditions discussion.
If you can't be at the auction in person, no problem; reach out to us beforehand, and we can assist you with the process. Sometimes, we take bids over the phone, but rest assured, we vet all bidders to ensure legitimacy.
Participating in the auction is free. If you become the winning bidder, you'll put down 15 percent on the day of the auction as a non-refundable deposit. We already have the title work and contracts completed, available for your review on the auction day. You can visit the auction trailer marked with "Venture Group" to get assistance from our team.
During the auction, we slow down the real estate process, so don't feel intimidated. You're welcome to ask for help, and we'll guide you through the process. We go through two rounds of bidding, and it's important to note that there are two ways to sell property at auction: absolute, where the seller accepts the last bid no matter what, and confirmation, where the seller has the right to accept or reject the last bid.
If a successful bidder emerges, we fill out the contracts, collect the earnest money, and typically allow 30 to 60 days for closing. In the rare event that the seller's expectations aren't met, negotiations may follow with the last bidder, then the backup bidder. If none of these options work out, the property may transition to a traditional listing.
To recap for buyers, you can conduct inspections before the auction, the down payment is 15 percent if you win, and closing can happen within 30 to 60 days. The exact terms are covered in the terms and conditions, and you can always reach out to us with any questions.
I hope this quick overview of both selling and buying at an auction has been helpful. Please note that I'm speaking only about how we do things at Venture Group Real Estate and Venture Group Auctions. If you've found any of this information remotely helpful, I would greatly appreciate it if you would subscribe to our youtube channel. We'll see you at the next auction. Goodbye!