Curiosity combined with a desire to be on top of the Lake real estate market led me to attend the July 18th Luxury Home Auctions here at Lake of the Ozarks.
Each of the four homes advertised for auction were investment speculation homes. None of these were distress sale situations and certainly none were anyone’s personal home they were in danger of being put out of. All of these homes had minimum reserves or bid requirements set.
The results of the auction were interesting. One home was contracted before the auction took place, the remaining three were contracted on auction day as a result of the auction however, two of these are now back on the market leaving one home sold at auction still under contract at the time of this writing.
Each of the four homes are listed with various real estate companies and the listing agents worked with the auction house to facilitate and market the auction process. The auction process was handled very professionally and had a large attendance.
In a down real estate market, sellers are looking for an edge and buyers are looking for a deal. A real estate auction is simply another method of selling real estate. It is a real estate marketing process that involves the public sale of any property -- most certainly including those that are nondistressed -- through open cry, competitive bidding.
Any auction can also be affected by national and world economic situations. Auction dates are set weeks in advance. A rash of bad news in the days before an auction can affect bid prices, and, ultimately, the sale price.
As a seller, you need to do your homework to know what services are offered, how your property will be promoted, what fees and commissions you will be responsible for and the auction house’s track record. Most auction houses charge an upfront marketing fee in addition to commission.
As a buyer, you need to complete your due diligence and have your financing in order before the auction. No inspection clauses or financing contingencies are allowed in most auction sales. Most auctions charge a buyer premium or percentage of the purchase price; at the auctions I attended it was a 6% fee. You also need to realize the auction house is representing the seller and you’ll want to be sure to obtain any required documents in advance for review.
If you would like a detailed sales report on your specific property type or neighborhood, or would like to ask a lake real estate question, contact Michael at 877.365.cme1 (2631) or cme@yourlake.com View all lake area listings at www.cme1st.com You can also log your opinions on Michael’s real estate blog, www.AsTheLakeChurns.com
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