Acting as the Selling Agent in an Auction
It is very important to know how an Auction works before representing a buyer or seller in a real estate auction. In this article I am going to discuss with you the necessary steps to follow when representing a buyer in a real estate auction.
If you are representing a buyer who has never purchased in an auction then it is important to explain the auction process in detail so that they understand the benefits of purchasing in the auction. It is also important for you to make sure that your buyer is pre-qualified. All purchasers in an auction must have been pre-qualified in order to bid. Once the buyer is pre-qualified, then it is the agents responsibility to make sure that the buyer is registered to attend the auction. All bidders must be registered before the event takes place.
It is the right of a buyer to have an inspection done on the property that they will be bidding on. There will be a series of open houses that the seller will/should have, which allows not only the buyer to view the property but also an inspector to come out and inspect the property.
When it comes time for the auction, all buyers need to bring in a certified check All auctions require a different amount of money that one would need to bid. The purchaser typically needs to have at least 5% of the purchase price ready and available. It is important to inform the buyer that not only is a certified check needed, but also a checkbook or separate check for the remaining balance as well.
The agent should attend the auction with the buyer to make sure that the process runs as smoothly as possible. Once the bidder wins the property, they are to fill out the necessary paperwork and close within the allotted time frame.
The auction is an exciting event which benefits both the buyer and the seller but only if the agent knows how to represent their client properly in an auction. Auctions can be intimidating for a buyer who is experiencing it for the first time, so they are relying on you and your knowledge to assist them in getting the best value for their money. All agents should become educated on the auction process and get involved as well. This is the wave of the future, so dont get left behind, get ahead!
