The Foreclosure Report

Auctions Grow More Popular In Maine

The Keenebec Journal reports on the auction method of sellin a house. "Want to sell a piece a real estate for the most money you can? Or maybe you're a buyer who likes to sniff out good deals. Welcome to the world of real estate auctions. It is a popular trend in other parts of the country where high-end resorts, farms, and undeveloped land attract bidders on a big scale. But Maine's real estate buyers and sellers have, until recently, relied on traditional broker relationships. Real estate auctions were equated with bank foreclosures and distressed properties."

"'I am trying to educate people that auctions of real estate are good things,' said real estate auctioneer Thomas Madson who works in Gray."

"Auctions appeal to people frustrated with properties that have not sold, someone relocating who needs a new home fast, an heir who inherited a house but doesn't want the hassle of maintaining it or a developer who wants a buy-fix-and-sell."

"Adrian Harris has been doing residential, equipment, wood lot and stumpage, or standing timber auctions across Maine and New England for several years and says the real estate side of his business is booming. 'We are booked every weekend through April and last October and November, we had no free time,' he said."

"Real estate was one of the most active live-auction categories across the country, according to the National Auctioneers Association. Residential real estate auction sales in the country showed an increase of 8.4 percent over last year, up to $51.2 million. Land and agricultural real estate auction sales grew 7 percent and commercial real estate auction sales increased by 4.9 percent."

"The broker provides potential bidders with a prospectus that includes a copy of the deed, if the sale is a bank foreclosure, a property description, lead-based paint disclosure, tax information, utility bills, maps, and terms of the sale. Also included is required information from the Maine Real Estate Commission's consumer guide."

"Auctions require a cash deposit with the registration that will be credited towards the selling price for the top bidder at the time of closing. The deposits are returned to the non-winning bidders on the day of the sale, and closings are usually within 30 days of the auction. Financing has to be in place before the day of the auction."

"Buyers can check out the property at one or two open houses and on the day of the event that the auctioneer/broker staffs. Whatever is known about the land and the building has to be disclosed but a full title search and building inspection is the buyer's responsibility after the sale."

"The auction is usually held on-site with the reading of the terms and conditions of the sale and then the bidding begins at the publicized starting price. Only the auctioneer and seller know the 'reserve' bid, the minimum amount of money the seller will accept."

"Harris, a former dairy farmer from New Sharon with a down-home style, has built up his auction business over the years through word-of-mouth references and a reputation for honesty and results."

posted by Ben Jones @ 2:32 PM