Understanding a Real Estate Auction?
- An accelerated way to generate competitive bids to sell a property. Most auctions are now conducted on the internet through an online platform.
- In our area, Lee County, the most common forms of Auctions are Bank Owned or Tax Deed. Depending on the rules and/or condition of the property for Bank Owned auctions, they may be eligible for financing.
- However, most are sold ‘AS IS’ and traditional financing will require an appraisal. For example, a VA appraiser will determine an acceptable value based on recent nearby sales and looks for the property to be safe, sound and sanitary. Contact me to learn more about the risks and fees associated with property auctions.
There are 3 basic types of Auctions:
- Absolute – the property is sold to the highest bidder, no matter what the price is.
- Minimum Bid – the sales price must be above a minimum level.
- Reserve – the seller reserves the right to accept or reject the highest bid.
Here are some of the websites that offer properties in Southwest Florida through auctions:
- HomeSearch.com is now Xome.com
- Hubzu.com is Ocwen or RealHome
- HudsonAndMarshall.com is also known as ServiceLink Auction
Local counties also offer Tax Deed auctions through county websites.
*Generally speaking, most auctions require the buyer to pay an additional buyer’s premium on top of the purchase price. Most auction properties also use the seller’s contract, another reason why it is always a good idea to seek out a professional Realtor and/or Attorney who can help guide you through the complexities of an auction and assist with the due diligence process.