Selling Real Estate at Auction

Buying and selling real estate at auction is very similar to the traditional method except
how the price is established. Traditionally, written offers and counter proposals are exchanged until the price is established. Buyers are wondering if they have offered too much and cost themselves some money or not enough and someone else's offer will exceed them and therefore cause them to lose the deal. Sellers are wondering if they should accept the first offer risking losing a better offer later or declining the first offer risking losing the buyer and not getting a better offer later.

At auction, every buyer has the opportunity for the last bid and knowing how much their bid exceeds the previous bid. Sellers can allow the competition of bidders to take place taking the guess work out of their decision. Sellers can assure themselves of receiving an acceptable offer by either reserving the right to accept or reject the highest bid or by opening the bidding at a minimal acceptable pre-announced price and then letting the bidding process determine the final price. It is my personal preference for sellers to open the bidding at a pre-announced amount so buyers know that an amount over that and higher than the other bidders will buy the property. This allows the buyers to meet with their lenders before the auction to prequalify themselves for an amount over the minimal acceptable bid and decide before hand how much more to prequalify for to allow themselves to participate in the bidding process. The terms of the contract are made available before the auction so everyone knows exactly what they're buying.

Once the high bidder is determined, that party will enter into a Colorado Real Estate Commission approved Contract to Buy and Sell Real Estate with the seller for the bid amount. Buyers and sellers will have the same rights and protection the contract offers regardless of how the final price was established. From this point, the process continues the same as the traditional way.

It is my personal policy as Auctioneer / Real Estate Broker, to offer a cooperating broker commission for those buyers who wish to have their own real estate broker represent them through the process. As for those buyers who allow me to represent them, I'll be representing them and the seller as transaction broker throughout the complete real estate transaction. Only during the bid calling time, as the auctioneer, will I be working for the seller.