Adirondack Country Homes Realty Inc.
Serving the "Entire" Adirondack Park with offices at:
Schroon Lake Region (Main Office): PO 488, 1098 US Route 9, Schroon Lake, NY 12870 * 518.532.7900
High Peaks Region/Auction Sales: 2918 US Route 9, North Hudson, NY 12855 * 518.532.9323
Lake Champlain Region: 25 Munsey Way, Elizabethtown NY 12932 * 518.569.8884
Lake George: 2022 State Route 9, Lake George, NY 12845 * 518.668.2677
North Country Region: 113 Flynn's Line Road, Burke, NY 12917 * 518.483.4538
Speculator Region: Route 30, Speculator, NY 12164 * 518.569.8884
Washington Country Region: 4156 County Route 30, Salem, NY 12865* 518-584-3294
Adirondack Country Homes Auction Details
How is a real estate auction different from a traditional real estate sale?
The definition of a real estate auction is: “The firm and time-defined sale of real property by competitive bid,” in traditional realty sales the buyer and seller have no real idea of when the closing will occur, nor is there any locked in firm price since even after the contract is signed the price is still open for negotiations that comes out of the property inspection. Also, despite the signed contract the deal is almost always subject to the acquisition of a mortgage by the buyer. The auction method is the only real estate sales process that establishes a firm time defined date for the sale and the closing; a firm and irrevocable price for the sold property; and a non-contingent sale.
Is it true that only real estate foreclosures are sold using the auction method?
This has been a myth circulating from town to town for decades and is definitely not the case. The auction method of selling real estate has been chosen over traditional methods for centuries, the most famous of which was the sale, via auction, of the entire Roman Empire. The Empire that sprawled from Syria on the east border to the Danube on the north border and Britain on the west border was placed on the auction block. This largest auction sale of all time was brought about by political upheaval with the praetorians issuing a proclamation for an appointed time to begin the sale which eventuated in the dismantling of the Roman Empire.
Bringing this back to a more meaningful time for us shows realty auctions chosen over traditional methods because it is a no nonsense method of selling real property that results in cash bidders not tire kickers, expeditious closings of all types of property, non mortgage contingent sales and the best possible market price for the property.
Doesn’t the auction sale mean that I give away my property without receiving a fair market value?
Again this is not true. Actually the word auction is derived from the latin root “auctus” which means to increase. In distinction to traditional methods of realty sales in which prices usually go from higher to lower the auction method goes in the direct opposite starting off lower and, through competitive bidding in the marketplace, ending up the higher.
How does the real estate auction work?
When an owner retains the services of an auction marketing company the auction company strips away the mysteries surrounding the entire auction process. Basically it boils down to three segments: 1) listing, 2) selling, 3) closing.
What price can I expect to receive for my home?
The realities are that this is a complex area and price is affected by many variables in the market place. The key to achieving the best price for your property is to have a realistic selling price in place at the time of the sale event. Every home sells if it is priced correctly for the marketplace. Of course, we need to compare apples to apples, and despite the many enhancing features added to the property by the owner, that may not positively affect the buying price for the property. These owner improvements might not entice the buyer in increase their bid. The one thing you can depend on is that the highest price achieved at the auction will be the best price you will receive for the property.
Once the Auction is over do I have to accept the highest bid offered at the Auction?
There are two types of sales that are conducted using the auction method. One is the “Absolute Auction” and the other is “Subject to Owners Confirmation” The Absolute Auction is a rare event and means that what ever price is the highest bid at the auction, that it is the winning bid and the property is sold at that price. When absolute auctions are conducted very large numbers of people show up and fierce, competitive bidding usually ensues. Although this type of auction brings a large audience and fierce competitive bidding, the price achieved may not be the desired price by the owner and may be quite disappointing.
The most popular form of auction is the one in which the final high bid is “Subject to Owner Confirmation”
In this type of sale the owners’ expectations for a minimum price are already established via the listing agreement and if that price is achieved the property is sold and the owner is bound by the listing contract to sell the property to the successful bidder at the auction. However, if the minimum price is not met at the auction, the highest bid achieved will be brought to the owner that moment and they do have an option to accept the current bid offered.
How much does the auction cost me?
This is the most enticing part of the auction method of real estate sales. There is 0% commission charged to the seller of the property. The seller is responsible for the marketing /advertising for the property.
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