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Chapter 11 [Listing Agent]
Auction Process
You can count on people to behave in their own best interest. No
one will let someone else walk away with a bargain they want for
themselves. Each serious buyer wants to buy the
property at the lowest possible price. This process will
continue until the price gets to the reasonable range. Then the
bargain hunters start dropping out, leaving the real buyers to bid
up the price against each other.
End of
auction
The following procedure is to be administered at the closing of
the auction. You will contact the highest bidder to discuss and
execute legal documents. Only after a contract is signed by both
parties (buyers and sellers), IS A BINDING BID CREATED. If the
highest bidder is unwilling (the buyer has no obligation to sign the
contract) or unable to do the aforementioned within 24 hours
(COOLING PERIOD), the seller may choose to contact any of the previous
bidders.
Deal only with
preapproved buyers
Most people cannot buy a real estate property with cash. They
must go to a financial institution and borrow the money. The
financial institution will check to establish the buyer’s ability to
repay the loan. The mortgage approval may take from days to months.
This is why you want to deal only with preapproved buyers.
A preapproved buyer is the one who already started the mortgage
process. He/she has actually submitted all required documents and
filled out forms for a loan and received a preapproval in writing.
The document shows how much the buyer is qualified to borrow, what
the interest will be and for how long the financial institution will
hold the cap on the interest (it is usually 60- 120 days). If the
high bidder is not preapproved, offer the property to the second
highest bidder.
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