Interestingly enough, I have had three prospective buyers curious about the Villages Lehua (MLS# 242131) that is scheduled for auction at the end of this month.
The situation being…while you CAN submit an offer, which would effectively remove the property from the auction process, the buyer submitting the offer would still have to pay the 5% of any accepted sales price on top of the price submitted/accepted. This would cover the fees for the auction as though they held it!
A buyer must be prepared to submit 10% of the sales price as a down payment, which is non-refundable in the event they cannot obtain financing. So…if you are pre-approved (not just pre-qualified), this may be acceptable, but it is a big risk of money if not.
You are not afforded the protection of a traditional sale, or even a short sale where the offer can be made “contingent” upon financing at rates and terms acceptable to the buyers, AND the property has to appraise at or above sales price as well.
Are auctions really a way to pick up great properties if they have already been on the market, or are they just another way the sellers try to create interest at no additional cost to themselves?!
If you are looking to buy value and quality, is an auction the best buy? Stay tuned.
Living and lovingÂ my resort life!