I’M NERVOUS ABOUT BUYING MY HOME THROUGH YOU GUYS AT AUCTION.
Buying a home through auction couldn’t be any more fair because now everything is transparent.
We put the home on the market at least 2 weeks before sale date so you have time to view the property and ensure you can get your financing done prior to sale date.
You will receive a copy of the property inspection for the property paid for by the sellers.
The entire process will still go through a Real Estate brokerage so you have all of the same safeguards you do with any other house purchase. Your deposit will also still be held in a Real Estate brokerage trust account and applied to the sale price on closing.
You will never worry if you paid too much or why you didn’t get the house, because you can see the bids and you can increase stop bidding whenever you like. If you don’t get the house you will also know exactly what it sold for as soon as it sells.
Every offer is the same and will never wonder why someone may have gotten the house at a lower price than you offered, or if there was a side deal somewhere that you didn’t know about.
WHY DO I HAVE TO PAY COMMISSION, I THOUGHT THE SELLER PAYS?
The commission always comes out of the proceeds of the sale either way. If the seller would be paying the commission then the seller will usually increase their price. If the seller would sell to a neighbor or someone privately in most cases the seller is often offering a discount on the price somewhat since there is no commission to pay. If you have a price in mind to pay for the house “say $500,000” and the commission is 5% then stop your bidding at $470,000 and the sale price will end up around $500,000.
DO I HAVE TO PAY THE COMMISSION RIGHT AWAY?
No, the commission is added into the offer just like with a conventional sale and will be financed through your mortgage as with a conventional real estate sale. If your highest bid was $470,000 and you are the winner of the property your final price in the offer would be $496,555 which is the sale price of $470,000 plus 5% commission and 13% HST on the commission .
CAN I TAKE PART IF I AM WORKING WITH A REALTOR NOW?
Yes your realtor gets paid as with any other purchase. Let your realtor know that you are interested in the house and to contact us. We will then send your Realtor the offer documents and they can book an appointment for you to view the property.
HOW DO I BID?
You will need to complete the agreement of purchase and sale supplied by us for the property and send it in. We can assist you with this if you need assistance. Once we have received the offer we will send you a link to register on the Ontario HiBid bidding site. Once registered for the auction you will be able to see the bids and increase your bid price if you like.
KEEP IN MIND THAT THE COMMISSION IS ADDED ON TOP OF THE BID PRICE SO WHEN BIDDING REMEMBER THIS AND BID ACCORINGLY.
All auctions will be “soft close auction” meaning if just prior to closing of bids we receive another bid there will be 5 minutes added on top of the bid close time giving other bidders time to bid if they wish. This ensures that someone is not able to win the house simply by sitting back and bidding just above the last bid 1 minute prior to auction close.
HOW DOES IT WORK IF I “WON” THE HOUSE?
As with a traditional sale the offer will be handled by a Realtor. If you were the highest bidder on closing of the auction and “won” the property you, or your Realtor will be contacted by one of our Realtors and we will send your offer with the amended price to you INCLUDING COMMISSION. You then will need to initial your amended price, sign for receipt of copy, and send back or have your Realtor send back the offer to our brokerage. You will also be required to etransfer or deposit into our “Real Estate Trust account” the required deposit.
If working with one of our Realtors we will send all documents to your mortgage broker or bank and your lawyer. During the closing period we will also be there for any questions or assistance at any time. If there is a provision for you to visit the property again prior to closing we will assist in setting up the appointment and be there to show you through.
As stated this is the most fair and transparent way of buying and selling Real estate. The sellers know that they will get fair market value for their property, and the buyers have transparency and time to make informed decisions that they have never had.
When you want your Real Estate sold yesterday!
TO CONTACT US TODAY CLICK HERE