How Real Estate Auctions Work

The Inside Story About How Real Estate Auctions Work

Hey Bidder, Bidder!

I’ve long been curious about how real estate auctions work.

My curiosity got the best of me recently, so I spoke with a respected local real estate auctioneer to learn more about real estate auctions.

Here’s what I learned: (other than the fact that auctioneers talk funny)

Type of Sale

  • Real estate auctions are usually “live” onsite auctions with buyers present during the auction.

General Process

  • Buyers must register and provide proof of funds or pre-approved financing.

Earnest Money

  • Winning bidder must submit 5% non-refundable earnest money.
  • Earnest money is held by a designated title and escrow company.

Contingencies

  • Real estate auctions are “absolute” with no contingencies.

Inspections

  • Bidders may have the property inspected at their own expense prior to the auction.
  • The property is transferred “as is” with the seller making no repairs.

Financing

  • Bidders may arrange financing, but they must provide a non-contingent loan commitment prior to bidding.

Commissions

  • The seller pays the auctioneer a commission.
  • The auctioneer pays the buyer’s agent commission if the bidder is represented.
  • If the bidder is unrepresented, the auctioneer receives the buyer’s agent commission.

Buyer Premium

  • The successful bidder pays the auctioneer a premium (of the purchase price) at closing.

Agency Representation

  • Bidders can be represented by their own agent at the auction.
  • The auctioneer pays the buyer’s agent commission.

Summary

Real estate auctions aren’t for everyone, but they provide immediate sales results and closable sales without the uncertainties of traditional real estate transactions.

You should have your own agent when buying at auction.

I can represent you, as a bidder, at a real estate auction.

My auction services include:

  • Market Analysis
  • Coordinate inspections
  • Provide market insights
  • Contract review
  • Coordinate escrow processing
  • Review closing documents
  • Attend closing appointment

For more information, please call me at (208)938-5533 or e-mail me.

Free Advice: Don’t raise your hand if you don’t want to buy the property!

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Stated terms above were obtained from one specific auctioneer.

Other auctioneers may have different terms and/or policies.

Just Listed: Alpine Pointe Home With 52′ RV Garage

Stunning Alpine Pointe Home With 52′ RV Garage!

Alpine Point Home

Alpine Point Home

  • Alpine Pointe Home w/52’ RV bay (14’ door), water, 50-amp power, and dump station.
  • 1/3-acre corner lot with rear yard privacy.
  • 5 minutes to Village At Meridian and I-84.
  • 2,524 sq. ft. of finished living area.
  • Single-level floor plan w/upstairs bonus room.
  • Three bedrooms, three baths, office inside entry, and a big bonus room over the garage.
  • Gleaming hardwood flooring (recently refinished).
  • Chef’s kitchen with custom Alder cabinetry, double ovens, slab granite counters, overlooking the private rear yard.
  • Luxurious master suite with tile shower, separate vanities, and HUGE walk-in closet.
  • 3rd bedroom with adjoining bathroom is ideal for separate living quarters or guest quarters.
  • Simpli-Safe® security system and Ring® doorbell.
  • Covered patio with near-new Hot Spring® spa.
  • Covered gazebo.
  • 3-car garage and 52’ RV bay!
  • Lush landscaping with pressurized irrigation.
  • Full vinyl fencing.
  • Storage building in the rear yard.
  • Hot Spring® spa, kitchen fridge, washer, dryer, garage fridge, garage freezer, and garage storage units included.
  • 2019 Zamzow’s lawn program included.

Offered At $540,000

Call For Your Own Private Showing

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Boise Real Estate: Our Spring Market Is Here

The Boise Real Estate Market Emerges From Hibernation!

Boise Real Estate

Actually, our market didn’t go into hibernation this year!

February’s Boise (Ada County) real estate activity included:

  • 1,333 active listings.
  • 1,357 pending sales
  • 681 closed sales
  • +7.3% average sales price increase vs. February 2018.
  • +11.2% median sales price increase vs. February 2018.

About Phil Hoover

How I Work With Sellers!

As of this morning, we have only 1,348 single-family homes for sale in all of Ada County.

Over the past 12 months, we’ve closed an average of 965 sales per month.

That works out to 1.4 months’ supply of listing inventory at this time as we enter our busy Spring Boise real estate market.

Due to our low listing inventory, we can expect to have a strong seller’s market during the next 90 days.

Thinking of selling?

NOW is the time to list your home!

It costs nothing to learn what your home is worth!

So, give me a call at (208)938-5533 or e-mail me and let’s talk!

Data pertains to Ada County single-family homes on lot or acreage.

Data does not include condo or townhome properties.

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The False Promise of “We Buy Houses!”

Have you seen those “We Buy Houses” signs on utility poles?

We Buy Houses

They’re intended to snare unwitting homeowners who think they can sell their home quickly without a Realtor®.

The people behind those signs prey on unknowledgeable homeowners who are often facing financial challenges.

If you call the number on the sign, realize that you will be dealing with someone who knows far more about real estate than you do.

Those buyers are shrewd deal-makers and your best interests are not their best interests.

Their motivation is to take advantage of your desire for a fast sale and make a huge profit in the process.

When It Sounds Too Good To Be True . . .

They’re going to deduct all ordinary sales costs as part of the deal, including commissions, closing costs, fix-up costs, and carrying costs.

Then, they’re going to build in a substantial profit for themselves.

Perhaps those signs should say “We Buy Houses At Deep Discounts”?

You may avoid paying a commission, but the cost of the commission will be deducted from the offering price.

The bottom line is that you’re essentially paying a commission while not having a skilled, experienced Realtor® representing your best interests.

If the offer is indeed legitimate, and the buyer is actually able to perform, you may end up with a closed sale, but you must be careful.

Beware Of The Fine Print

Never sign over the title to your home to anyone without using a title/escrow company and ensuring that everything is done correctly.

Above all, make sure that all encumbrances against your property are paid off at closing.

Understand that simply deeding your home over to someone else will not relieve you of your mortgage debt and other obligations.

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Tempted to consider one of those deals?

Call me at (208)938-5533, or e-mail me before you sign anything!

It’s a free call and it’s likely that I will help you avoid a nightmare experience.

How I Work With Sellers

What’s Your Meridian Idaho Home Worth?

A website can’t determine the value of your Meridian Idaho Home

Meridian Idaho Home

Real Estate Portals

People love to visit real estate portals.

What’s not to love?

Some people (like you?) spend hours viewing tantalizing online “eye candy”, looking at dream homes and trying to figure out what their own home is worth.

Along with embellished photos and glowing descriptions, some of those portals offer estimates of value.

Those estimates of value are calculated by Automated Valuation Methods (aka AVM), generated by computer algorithms.

What could possibly go wrong with this concept?

Computerized Pricing Issues

In Idaho, those real estate portals rely upon assessor’s data, which can be as much as a year old.

If you’re a seller, how will you feel when you rely upon an inaccurate automated value to establish your asking price?

A computer sitting in a far away server farm will never understand:

  1. The location of the home.
  2. The neighborhood and surroundings.
  3. The condition of the home.
  4. Upgrades made to the home.
  5. Undisclosed needed repairs.
  6. The motivation of the seller.
  7. Local market conditions.
  8. Details of comparable sales.

How I Work With Sellers

Thinking of selling your home?

Our Spring market is the best time to sell your Meridian Idaho home!

Would you like to know what your home is really worth?

Give me a call at (208)938-5533 or e-mail me.

I will analyze your home’s value and personally explain actual MLS data with you!

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