Not only do auctions provide sellers the opportunity to convert their real estate assets into cash and look for other opportunities, they also allow buyers to find some good deals on quality properties.
Crawford, CO (PRWEB) May 1, 2010
Colorado real estate buyers and investors are becoming ever more familiar with a new way of buying and selling real estate – auction. “It’s a way for sellers to convert their real estate assets into cash and look for other opportunities,” says Gary Hubbell, owner of United Country Colorado Brokers, co-host of an upcoming multi-property auction to be held at Two Rivers Convention Center in Grand Junction May 15, 2010. “And buyers can find some good deals on quality properties.”
Hubbell and Mike Krieg, a top-selling broker with United Country RealQuest Realty in Grand Junction, embraced the auction concept after analyzing the western Colorado real estate market. “Our goal is to give our sellers a chance to liquidate properties quickly in an otherwise slow market,” said Krieg.
Though real estate auctions are seen in some circles as a sign of desperation, brokers Krieg and Hubbell beg to differ. “In many states, auction is a common method of transacting real estate,” Hubbell reports. “Colorado buyers are starting to get acquainted with the process.”
Sellers are seeing the benefits, too. “The word is getting out,” says Krieg, “and our phones are ringing off the hook to consign properties.” The selection is wide-ranging and interesting, with properties consigned from all over Colorado, Krieg reports. “We’ve got a 317-acre recreation property on Glade Park that will be sold at absolute auction, a beautiful mountain lodge in Marble, a resort near Durango, several building lots in Grand Junction, two really nice irrigated hay ground parcels in Crawford, a log home on 38 acres in Montrose, a Southwestern-style earth berm home in Crawford, and we’re working on several large subdivision properties in Delta and Grand Junction.”
The team reports one difficulty so far – the properties keep going under contract prior to the auction. “These are quality properties,” Hubbell says. “On many occasions, buyers have been watching them for months or even years. When they hear the property is going to auction, they don’t want to compete with other buyers, so they go ahead and make offers and get it done.” Hubbell reports putting one of the auction’s premiere consignments, a mountain recreation property fronting the Crystal River listed at $1.6 million, under contract three weeks prior to the auction, and two Front Range building lots were sold as well.
Buyers new to the auction process are learning the ropes. Contracts are not contingent upon inspection or financing and the inspection period for auction properties is up until the day of the auction. Buyers must present a letter of pre-qualification from a lender or proof of cash assets in order to bid at the auction, and must be pre-registered prior to bidding. The auction team charges a 10 percent buyer’s premium, which is added onto the amount of the final bid. Contracts must be closed within 30 days. Out-of-state buyers can bid through http://www.proxibid.com.
The properties include a mix of minimum-bid properties and absolute auction properties, Krieg says. “The absolute auction properties attract the most attention because they will sell no matter what the bid,” he says. “But we counsel our sellers to consign properties at no more than 50-60 percent of the real market value of the property so we can get the bidding going.”
Ultimately, “The goal is to achieve fair market value,” Hubbell says. “Think about it, if there are 350 people in the room that day and they’ve all brought money to buy real estate, we’ll have a great idea of where the market is.”
The auction will start at noon, with information packet previews available starting at 10 a.m. Interested buyers are encouraged to visit http://www.coloradopropertyauctions.net for more information, or call Mike Krieg, (970) 640 4772 (mkrieg(at)unitedcountry(dot)com) or Gary Hubbell (970) 988 2122, grandviewranch(at)gmail(dot)com.
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