Stacey-Ann's Blog

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My First Real Estate Auction

Today I attended an auction for a condo in Largo, MD.  We were allowed in an hour before the auction to investigate the unit.  I was actually surprised that there were so many people there - my guess is 8-10 sets of people bidding.  

The bidding started at $20,000 and quickly climbed to a point that eliminated many of the buyers present.

I'm not sure what I expected but it kinda felt like I was on an episode of Storage Wars.  It was very civilized and controlled and the unit actually sold for very close to market price.

One interesting thing was that the buyer is charged a 5% auction premium which is added to the sales price but this auction company only offered 1% commission to an agent who brought their client.  That means at opening bid price I had the potential of earning a whopping $200.

Most buyers shy away from auctions because they aren't contingent on financing.  However, it seems that they would be good ways for cash buyers to scoop up some good investment properties.

Having attended one and seeing that it really wasn't that strange I no longer feel intimidated by the concept and I look forward to attending more in the future.

If you or someone you know would like information about buying, selling, or renting a home in Prince George's, Montgomery,  Charles, Calvert, Anne Arundel, Howard, and/or Baltimore Counties please contact Dr. Stacey-Ann Baugh of Century 21 New Millennium.

 

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Dr. Stacey-Ann Baugh

Century 21 New Millennium

www.LiveinPGCounty.com

staceyannbaugh@gmail.com

240-481-3565 (C)

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Comment balloon 5 commentsDr. Stacey-Ann Baugh • September 28 2011 09:27PM

Comments

Stacey:  So did that buyer end up purchasing below market?  I wonder how many buyers get caught up in the, "bidding frenzy", and pay even more than if they would have gone the traditional route and used an agent?  I have attended private auctions here in California and some do offer financing.  I have also attended a County auction that requires cash and does not guarantee clear title.  

Posted by Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula, Realty Works Temecula (Realty Works Temecula) almost 7 years ago

I have been to a few of those. More for curiosity than business. I love the "Storage Wars" analogy.

Posted by Ellie McIntire, Luxury service in Howard County & Catonsville (Ellicott City Clarksville Howard County Maryland Real Estate) almost 7 years ago

Stacey-Ann...

As a licensed GA auctioneer, I can tell you that everyone should read the terms and conditions of the auction prior to registering. Every auction is different, so never assume anything!

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) almost 7 years ago

As with any auction - it can get carried away.  It only takes two fools to have an auction.  Those are the last two bidding.  Both determined to win.  I don't like the auction concept for real estate for myself.  It might be a useful tool for those who need to sell quickly.

Posted by Bonnie Vaughan, CNE SFR - Buyers/Sellers - Lackawanna & Surroundin almost 7 years ago

In my rural area, we see most investors bidding. Those with cash. I've had a few of my bank owned listings go to auction. I've only had one buyer and they were aware of the terms. It seems like the bank kind of sucks people in with the low starting bid, and the bank doesn't have to sell the property...no matter what it gets bids up to.

Posted by Debbie Laity, Your Real Estate Resource for Delta County, CO (Cedaredge Land Company) almost 7 years ago

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