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Myers Jackson Texas Flip and Move Auctioneer

Myers Jackson Texas Flip and Move Auctioneer

Myers Jackson Texas Flip and Move Auctioneer

Talks Absolute Auction: Luxury Home Buyers Beware

 

Myers Jackson, Texas Flip and Move Auctioneer offers insights about Absolute Auctions and they may may come with big surprises. Many bidders maybe surprised to find that a purchaser has defined obligations just as the seller may. It is the intent of the Auctioneer to utilize every legal tactic possible to attract a byer whom will offer the highest bid. In return many buyer types may respond. Absolute auctions mean that the intent is to sell the property being offered to the highest bidder.

 

Hold on not so fast…what if the buyer intends to make an offer and cannot pay. This is a circumstance where Auctioneers may ask for qualification or financial verification in advance. In a Auction for a luxury home in Mississippi the bidders are required to bring a minimum deposit check of 100,000 or other verification; however, this is not an absolute auction. What is the difference you ask? We will talk more about reserve auctions in another page, however basically a reserve auction the seller can set a bottom limit or accept or reject the offer, if the auction is absolute then the seller cannot reject the offer once made.

 

Let’s look at a few rules that covers the intent of the seller when offering a property at absolute auction. First, look at the next two paragraphs:

 

What if there is not intent to sell?

No auction should be advertised “absolute” or “without reserve” unless there is a bona fide intent to transfer ownership at the time of advertising and at the time of the auction, regardless of the bid or bidder.

What if there I a lien or mortgage on the property?

An absolute auction should not be held when there are liens or other encumbrances on the property, unless a financially responsible party signs a binding commitment to guarantee that all liens will be paid regardless of the high bid.

Common questions that are ask

Can the Auctioneer Bid?

No the Auctioneer cannot bid

Can the Seller Bid?

No the seller cannot bid, however a joint owner of family member may be allowed to bid as an individual buyer, but cannot bid on behalf of the entity that is selling when that bidder has soid control and is just bidding to elevate the price. 

Can there be a minimum?

No minimum can be set in an absolute auction (no amount)

Will the offer be rejected?

The selling entity cannot reject the offer once bid by the buyer.

How much can I expect to pay?

You set the limits for what you are willing to pay.

Do I get to inspect?

Yes, in most cases. Make arrangements with the Auctioneer.

Who pays closing costs?

Read the terms and conditions of the sale. These announcements will be made.

Do I have to pay other fees?

This will be outlined in the terms and conditions

Is there a reasonable assurance I can buy?

The only assurance is, if you do not make a bid, you certainly cannot buy.

 

What or Who Governs the Absolute Auction Process?

The UCC 2-328 defines some basic rules for an absolute auction: Once the auction is opened, and there is a calling for bids, the item must sell unless no bid is received within a reasonable time. As well, if we assume that by the seller bidding, a right of withdrawal is being invoked, then the seller cannot bid at an absolute auction – other than at a forced sale (auction). Lastly, it is clear that an absolute auction can be cancelled (withdrawn) prior to the opening of the auction – or calling for bids. In other words, if a seller doesn’t want to sell their item at an auction that has been advertised as absolute, they must decide before there is a calling for bids, or hope for a very quite reasonable time thereafter.

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Myers Jackson

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