Some of our most FAQ revolve around auction terminology. Check out the terms and descriptions below.
An “Absolute” or “No Reserve” auction means that the property for sale will be sold regardless of price, which in Auctioneer/Broker opinion is the most profitable and successful outlet. From the sellers’ perspective, advertising an auction as having no reserve price can be desirable because it potentially attracts a greater number of bidders due to the chance they get a bargain. If more bidders attend the auction, the belief is a higher price may ultimately be achieved because of heightened competitive bidding.
A “Buyer’s Premium” is a percentage that is added to the bid price to determine the total purchase price. For Example: If you bid $200,000 on a property that has a 10% Buyers Premium, then the total purchase price would be $220,000 ($200,000 plus $20,000 Buyer’s Premium).
Property Sold “As-Is/ Where-Is” Auction
All property to be sold “As Is/Where Is” with “all faults” condition. The seller nor Hartstack Auction Group make any warranties as to the condition of the property, suitability for a particular use, or accuracy of any information. This sale is “Caveat Emptor” or “Buyer Beware”. The only warranty made is marketable title free and clear of all liens and encumbrances. The property is sold “As-Is”, no contingencies.
An attractive feature to sellers is that auction contracts have no contingencies, and closing dates are normally 30-45 days following the auction. The property is sold in “As-Is” condition with the buyer having full responsibility for any inspections. Financing conditions are rarely part of a real estate auction.