Vail home auctions create buzz but require attention to details
July 17, 2009 —
The latest craze in the real estate markets in the Vail area are for properties to go to auction. Suggesting an auction tends to create a buzz around a property as the word auction usually suggests that a property may be sold well under air market value. The term auction, according to wikipedia, reads as follows: "An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder." This is not necessarily true of all auctions but is true for an absolute auction.
Typically, real estate firms who want to move their listings and generate interest in properties will put together an auction which requires a reserve or minimum bid. So, the seller knows the downside going into the auction, and if their minimum price is not achieved, the home does not sell. In both types of auctions, prospective buyers are invited to come and tour the property before it goes to auction. Savvy and interested buyers will perform necessary due diligence, usually with the assistance of a qualified realtor, and make an informed decision as to their intent to bid. Buyers are required to be pre-qualified and must show up with a substantial amount of liquid funds to participate. At an absolute auction, like a foreclosure auction, the highest bidder wins, no matter how low the price.
So, next time you see an advertisement for an "auction." Pay attention and take notice as to whether or not this is a group of properties for sale with minimum bids or an absolute auction. For more information on local properties going to auction, call or email me.
Sondra Slappey is a real estate broker who writes about real estate in the Vail Valley for realvail.com. She can be reached at www.investinvail.com.
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