What will I need to bring to the auction? For most MAG auctions you will need to bring a bankable check and photo ID.
What happens if I am the successful bidder? Immediately after the auction, you will pay a (5% - 20%) non-refundable deposit to the Title Company and then sign a contingency-free contract. The closing will take place within 30 days. Also, remember that the buyer’s premium (typically 1% - 5%) is added to the purchase at closing.
Can I make the contract contingent upon inspection or financing? No. The property is sold” As-Is” “Where- Is” That is why we stress at MAG to inspect the property pre-auction.
If the property has been for sale prior to the auction and someone didn’t make an offer then why would a person be inclined to make an offer at an auction? We believe that the most common reason is the buyer was unaware that the property was for sale. Another very common reason may be that the price was set at an unrealistic value. When the asking price is out of line with the true market value, then a buyer may not even bother making an offer. Using the auction method of marketing, there is no set price, so there is no problem.
What if I want to be represented by a real estate broker? That is not a problem. If your broker wants compensation from MAG then he/she must pre-register you prior to 48 hours before the auction.
What are the advantages of a MAG auction as compared to a standard listing? Almost all sellers want to sell their property quickly with few hassles. When using the auction method of real estate the sale is fast and clean. The market value of the property is established and sold at fair market value.
Will I be able to understand what is going on at the auction? Yes. At MAG,we explain the auction process. We also have a qualified staff to assist you in answering any questions.
What type of properties are suitable for auctions? Most types of real estate are suitable for auctions. This includes farms & ranches, recreational property, commercial property, residential property, and bank owned assets. Call a MAG sales representative to see if your specific property qualifies.
Must the seller guarantee anything or provide some type of home warranty? Properties are sold in the “As-Is,Where-Is” condition. The prospective buyers have ample time to inspect the properties and are given a full property disclosure. The buyers contract says that they are purchasing the property As-Is,Where-Is condition. The seller does furnish Title Insurance that guarantees the property free and clear of all liens.
How long can I expect to wait to get my proceeds from the auction? The buyer puts earnest money into escrow the day of the auction. The balance of the money is due within 30 days unless otherwise other arrangements are made by the seller.
How much work is the seller expected to do? With the exception of depositing your final proceeds we at MAG handle everything from start to the finish.
How much will this cost me? Our fees are similar to what the standard real estate broker will charge with the exception of marketing fees which are paid by the seller. Your property will be marketed exclusively in a very aggressive manner. Our sales fee is paid at closing from the gross proceeds of your sale.
Do I have to accept whatever is bid at the auction? We offer two types of auction. With the Reserve Auction the final bid is subject to your approval. If it is an Absolute auction then the property has to be sold to the highest and best bidder without a reserve price.
Will I be perceived in financial trouble because I am selling at auction? No. Yours is a voluntary auction and promoted as such. The auction method of marketing is becoming a very popular method of selling.
How soon could we get started in an auction? It depends. Once we qualify your property and do the listing agreement we can promote and conduct an auction in as little as three weeks.