Absolute Auction in Steamboat Springs
Here in Steamboat Springs, the gossip in the neighborhood is about an Absolute Auction of an 8-10 million dollar property. Absolute auctions or auctions with no reserve are not that common in real estate.
Absolute Auction means the seller will take the highest bid no matter what.
Absolute Auctions are rare for a variety of reasons. There is an inherent risk that your property will go for an unreasonably low price. So, if you are auctioning off a million dollar home, someone could get a great deal and only pay half or less of the value. In addition, the price may not cover cost of administering the action and the transactions. A seller cannot have an absolute auction if money is owed on the property like taxes and mortgages.
A “reserve” price is a minimum starting price that helps protect a property from selling for too little.
An auction with a reserve typically can mean one of three things:
- A minimum price has to be met
- Seller can reserve the right to reject a bid
- Seller, or another party with an interest in the property, reserves the right to bid on behalf of the seller or lien holder during the auction
There are many reasons people have auctions, including:
– A guaranteed quick sale
– Owners are relocating
– Estate Sale
- Unique property
A unique property may have so few comparables that estimating its market value may be difficult so the owners are willing to find out a different way.
Like many things in real estate, there are many ways to sell your property. In addition, there are many ways to get a “good deal” in real estate. But the most important thing to remember – if this property is going to be your “home” then look at the house, and not just the bottom line. A house needs to speak to you and have the ability to become your “home”. It is not always all about the money.
I can represent you at any auction and would be happy to help you find your new “home”.
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