Here are the general procedures for real estate auctions.

1. We evaluate the property to determine if the property meets our internal guidelines. We do not accept all properties because the property and seller must meet certain requirements to increase the potential sale and price.
2. If acceptable we develop a plan for the property which varies based on several factors such as type of property, size, etc.
3. If we accept and the seller agrees to our plan, a contract is signed.
4. The auction is marketed through traditional and online marketing, as well as email to real estate investors.
5. Usually the auction will take place between 45 and 90 days depending on the property.
6. The property will either be offered online, or by live auction, or combination, where pre-bids are taken online and then a live auction to finalize.
7. The property can be offered absolute, with reservice, with opening bid and by other methogs.  Absolute auctions attrack the most potential bidders but what is used depends on our agreement with the seller.  This will be determined at the time we discuss our plan at the time of the auction.
8. If an acceptable bid is obtained, a contact is signed without any contingences and set to close in 10-30 days. The high bidder is requied to deposit non-refundable earnerst money at the time of the contract.  There are no contingencies or other provisions common in traditiional sales contracts that potentially allow the sale not to close or give the buyer a way out of the agreement.
9. Closing takes place and the auction is concluded.

 

Additonal information:

1. Tracts of land that can be offered in multiple tracts and then combined is one of the top types of property to auction.
2. Highly desirable property regardless of type, are better suited for auctions than traditional marketing. The reason is no one knows the value and these properties will have multiple parties interested and they have to compete to get the property. This is very important.
3. Although auctions of real estate in Mississippi are much lower than other parts of the country, in many parts of the country real estate auctions are frequent.  For example, desirable property like a home in Colorado mountains would generally alwayes be sold by auction because no one knows the value and multiple people will be interested.

 

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