OfflineAnyone had experience with on line action site?
I have two issues. The first is the site automatically calculates EM more then I want to pay. Can I renegotiate the amount before a signed agreement?
Second the sample purchase and sale agreement is padded to benefit of the seller, of coarse. Any red flags to run from? They are asking buyer to pay everything from turning on utilities to paying for Title insurance in order to use my closing agent. My bid is $.70 on the dollar of asking price and true ARV is higher. This could be a great deal and the value of the site is there is not a for sale sign thus no one realizes it is on the market. The downside is listing agent is in Florida and has zero reality on this market in Colorado. It is a tough one!
To bid or to walk away????????
Theresa
You can get a good deal, but there is no flexibility in terms. Its their way or no way. Carefully read the contract before bidding. There is no backing out. They will keep your EM and can pursue you for damages beyond that if you try to withdraw. Also, be sure you know how much commission they add to the purchase price. Each auction site is probably different. If after due diligence, it seems workable, go for it, but know your exit strategy!
Let us know how it goes.
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
Gena
Are you saying I am committed once my bid is accepted as opposed to once a Purchase and Sale Agreement is signed? I am wondering if the Terms & Conditions of the website lock you into the property prior to Purchase Agreement. What/ who's commission are you talking about? I know about buyer's premium and that's not applicable on this deal. Offer is $220, $22,000 repair estimate ARV $310.
Theresa
was with www.auction.com (REDC). With them, you are committed as soon as your bid is accepted. REDC gets a 5% commission.
If you are looking at a different auction company, it will have different terms, but I'd check very carefully.
So you are at 242 and to sell at 310 will cost about 30K, so now at 272, plus holding costs - make sure you work your numbers. Do you have an end-buyer or are you going to rehab yourself? Did you run comps to determine the ARV?
Blessings & Favor,
Gena.
Follow my Blog: www.genahoriatis.com
I can do all things through Christ who strengthens me. Phil 4:13
Psalm 1:1-3
Yes, as Gena stated above, you're committed when you bid, to their terms. I've done auctions through Williams & Williams, and it states it right there on their website. Read it carefully. I had to give a credit card to even register for the auction, and it states the 5% EM deposit would be charged to my card if I was the high bidder. They even ran an authorization against it to confirm it was good. In this case, I was not the high bidder, and the authorization was removed a few days later.
Hope that helps!
- Tom