09/26/07, 10:37 AM
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Join Date: Apr 2004
Location: Tennessee
Posts: 2,963
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Quote:
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Originally Posted by quietstar
I believe the professional service you need depends upon what type of property you have to sell. Decades of experience have confirmed that more than 90 % of buyers of residential property require mortgage financing. If you have an unusual auction co. that is prepared to invest 6 weeks processing and preparing all the details for closing the sale while looking after your interests, go for it and let us know who this rare outfit is. All states I know of would require they have a brokers licience anyway. I've bought land at cash sales for years and never bid beyond a "good deal price". In any event, I wish you good luck...Glen
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Every auction listing here, without exception, says that a bank letter of credit will be required to bid, and that buyers are to prearrange their own financing. There is usually a stipulation that the 10% nonrefundable deposit is required immediately and the buyer has a set number of days (usually 10) to pay in full. Then either the backup buyer gets a shot or the property is unsold, depending on the wishes of the owner. If absolute, the backup buyer is next. It is in the professional auctioneer's interest to make sure all buyers are qualified.
As far as bidding at a "good deal price," the last land I bought, people at the auction thought I was nuts to give that much, and told me so. Here we are 2 years later, and it is worth 30% more now than I paid. So a "good deal price" is in the eye of the beholder.
For buyers, I'd caution that members of the family owning the land CAN AND DO bid against outside buyers to run up the price. If you can in any way at all identify these people prior to the auction start, you will be less likely to be taken in by this ruse.
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Jim Steele
Sweetpea Farms
"To avoid criticism, say nothing, do nothing, be nothing." -- Robert Gates
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