Auctions are very exciting, and as a Buyer it is important for you to know how an auction is conducted at Barfield Auctions, Inc.
Here are all the details for attending and bidding at our auction. We look forward to seeing you at the Auction.
BIDDER REGISTRATION: The auction is open to the public, allowing anyone to bid on a property. In order to bid, you must obtain a bidder’s registration card prior to the beginning of the auction and present a bank letter of credit.
INSPECTION: The property is being sold on an “AS-IS, WHERE-IS WITH ALL FAULTS” basis. Each bidder must conduct and rely solely on their own investigation and inspection. Please review all information and seek appropriate assistance prior to attending and bidding at the auction.
AUCTION PROCESS: The conduct of the auction and increments of bidding are at the direction of the Auctioneer. The auctioneer shall offer the property to the highest bidder, regardless of the price. The successful purchaser will be asked to sign the Seller’s real estate purchase agreement on sale day and make an earnest money deposit equal to fifteen percent (15%) of the contract price. All properties will be sold subject to Sellers confirmation within ninety-six (96) hours. Any and all announcements made from the auction podium take precedence over any prior oral statements or written material except for the fully executed purchase agreement and subsequent closing documents.
BUYER’S PREMIUM: A properties sold at auction will be sold with a ten percent (10%) buyer’s premium fee. The bid amount plus the buyer’s premium will amount to the final purchase price. For example: A high bid of $100,000.00 plus the $10,000.00 buyer’s premium (10%) equates to a final purchase price of $110,000.00.
BROKER PARTICIPATION: Any licensed real estate broker is eligible to earn a commission equal to two percent (2%) of the final bid price by bringing the successful high bidder, provided their clients price by bringing the successful high bidder, provided their clients have been registered with the auctioneer and the below listed conditions are met in full at closing the undersigned broker will collect a commission equal to 2% of the final bid price for purchases made by the undersigned buyer.
Broker must be licensed in the state of the subject auction property.
Broker /Agent registers by 5:00 P.M. E.S.T. the day prior to auction day.
Broker/Agent shows the property to client prior to the Auction.
Broker/Agent’s client is the high bidder.
Broker/Agent is not acting as a principal in this transaction.
The Broker’s client closes the transaction in full in terms under the contract.
CONTRACT / PAYMENT: The successfully purchaser will be asked to sign the Seller’s real estate purchase agreement on sale day and make an earnest money deposit equal to fifteen percent (15%) of the contract price. The balance is to be paid in certified funds at closing with no owner financing available.
SURVEY: If the property sells divided, all property must be surveyed prior to closing by a licensed and registered Surveyor within the state of the subject property. The Purchaser will pay the cost of the survey. The number of acres surveyed times the contract price per acre shall determine the final or actual purchase price to be paid at closing. Barfield Auctions, Inc., will have the final approval of the selected surveyor.
AGENCY DISCLOSURE: In this transaction Barfield Auctions, Inc. is acting as agent for Seller not as Buyer’s agent, but does not have authority to make representations on behalf of the seller with respect to any matter.
CLOSING: The purchase contract provides for the sale to close within thirty (30) days after the date of the auction at which time the purchaser will pay the balance of the purchase price. Seller will pay real estate transfer tax, with the purchaser paying all other closing costs.
PROPERTY SIZE AND DIMENSIONS: All acreages and property line dimensions displayed are subject to change. They have been calculated for auction purposes only and are approximate and may be general in nature and are being sold subject to final survey. They are not guaranteed by the seller or Barfield Auctions, Inc.
If you have questions about buying property at an auction, call Barfield Auctions, Inc. at 877-679-2223 and we will assist you through the auction process.
Throughout the generations of the past the auction block has allowed buyers and sellers to meet at a central location to market their goods and determine the market value of a product through competitive bidding. Today the use of the auction method has become an essential tool for individuals and entities to market their assets in the most effective and efficient manner possible.
So Why Auction?
For the Seller there are many reasons that the auction process is superior to the traditional listing:
- Allows the Seller to exceed the asking price
- Reduction of costs
- Faster more efficient alternative to the traditional listing. In many auction situations a given property can be effectively marketed, sold, and closed in a total window of 75 days.
- Auctions are time limited, which gives the buyer more incentive to act. Not allowing the buyer to merely wait the seller out.
- The atmosphere at an auction brings out the competitive spirit in buyers, which raises the excitement level, thus resulting in a higher price for the property.
- The Auction method is flexible; in the sense a seller can market several different properties at one time and sell all properties at one location. The flexibility of the process also allows the Auctioneer to shape the marketing plan of each property differently to best serve the seller.
- The Auction method also has many different alternatives to the type of auction the seller may wish to pursue, ranging from the Absolute Auction, Sealed Bid Auction, or Reserve Price Auction.
- The Auction marketing method is effective with a wide range of products including Real Estate, Timber, Equipment, Personal Property, and in Business Liquidation Situations.