Real Estate Auction Tips and Tricks

NEWSPAPER STORY: Our client,  KENNEDY WILSON AUCTION GROUP, was featured in a story in the TRIANGLE BUSINESS JOURNAL about an upcoming real estate auction in  Raleigh

Tips – and photos – for the upcoming Ramblewood auction

Triangle Business Journal by Amanda Jones Hoyle, Staff Writer

Date: Monday, May 14, 2012, 2:42pm EDT

Auctioneers are gearing up to sell a dozen townhouse units in the Ramblewood at North Hills neighborhood.

Auctioneers are gearing up to sell a dozen townhouse units in the Ramblewood at North Hills neighborhood.

Staff Writer- Triangle Business Journal
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Auctioneers are gearing up to sell 12 townhouse units in the Ramblewood at North Hills neighborhood at a May 19 auction event at the Raleigh Mariott Crabtree Valley Hotel.

For the potential bidders who missed the “How to Buy at Auction” seminar on May 12, here are a few tips from Marty Clouser, senior managing director of the Kennedy Wilson Auction Group, which will be leading the auction.

• Auction of each home will likely last only two to five minutes, so get there early. The auction begins at 12 noon.

• Sit near the front so the auctioneer, Dean Cullum, and his floormen will see you first.

• Live online bidding is also available for pre-qualified bidders.

• Each bidder must pre-register for the auction

• Go out and do your own analysis of what you think the value is. Tour the homes and review all the paperwork related to the purchase.

• Be prepared to bid up to that price.

• Qualified bidders must bring with them all the required paperwork for a sale agreement, as well as a $2,500 cashier’s check made out to Kane Realty Group. A successful bidder then signs over the cashier’s check, plus he or she must write a check for a 3 percent deposit that is put in escrow until the sale is final.

• A minimum auction bid that will be accepted, known as the reserve price, has been set by the seller group. This secret reserve price is usually a number that is between the starting bid price and the previously listed price for the unit.

“A seller can accept a bid, counter the bid or reject it. But 90 percent of the time, the bids are accepted,” Clouser says.

The two-bedroom Ramblewood units that previously had list prices ranging up to $375,000 will have starting bids of $100,000. The larger units that were previously priced from $585,000 to $600,000 will have bids starting at $135,000.

Clouser says the only big difference between buying a home through the traditional sales model and buying through an auction is how the price is decided. “An auction gives a good reflection of the true value,” Clouser says. “It also helps reaffirm the real estate value.”

Amanda Jones Hoyle covers commercial and residential real estate. Follow her on Twitter @TBJrealestate