Property in Florida buying Florida homes at auction
People choose to sell property in Florida at auction for a variety of reasons but in all cases they are looking for a quick sale. It also offers a way of buying Florida homes without the drawn-out process of buying in the traditional way and you may also be able to pick up a bargain in the process. There are hundreds of commercial companies selling Florida real estate at auction and most can be found on the Internet.
Types of Florida real estate auction
Property in Florida offered at absolute auction will be sold to the highest bidder with no minimum or reserve prices. Other Florida homes will be auctioned subject to the seller´s confirmation. In this case the seller has the right to reject one or all bids.
Florida real estate put up for auction with a minimum bid means that there is a published minimum bid the vendor will accept. Bidding starts at this value and the highest bidder above that price will buy the property in Florida.
Process of buying Florida homes at auction
Buying property in Florida at auction is a relatively simple process provided the bidder is prepared for the auction. Scheduled preview dates take place and you should take the opportunity to inspect the property in Florida before the auction and read all of the information provided.
To take part in the auction you need to register and receive a bidders card. When registering, you should present a deposit cheque for the amount listed in the property information.
It is not necessary to have a broker accompany you when bidding for property in Florida at auction but you may prefer to do so. Auctions on Florida homes are conducted by open bidding and you would raise your bidder card and call out your bid.
If you are successful then you endorse your deposit cheque and sign the purchase contract for the Florida real estate you have bought. Once you have done this a date for a closing appointment is set.
Points to note about buying Florida homes at auction
Florida real estate available at auction is sold as seen and there is no provision for attaching conditions to the sale, such as it depending on successfully finding finance. Therefore, ensure you have inspected the property in Florida thoroughly as the deposit is forfeited if the buyer does not complete the deal before the closing date.
The buyer will pay for title insurance, documentary stamps, and all other costs related to the closing of the property.
The auction company will sometimes add a buyers premium to the purchase price of Florida homes bought at auction. This will normally amount to 10% and so the total price of a property in Florida you successfully bid $200,000 for will be $220,000. Check the terms and conditions of the specific auction to see if this premium will be added to the cost of the Florida real estate you are bidding for.
