No Demand for a Lender When You Employ a Real Estate Auction Company for Auctions

October 9, 2009 business No Comments

I was watching the news one day, and I was shocked to learn that the housing market has actually been growing over the last few months. This was shocking to me because the fall of banks and, in effect, lenders made me believe that people would not be able to receive financing to purchase something large like a home. I was amazed to find out that there are other options for purchasing a home than the seasoned process of a thirty year mortgage.

I was surprised to find that there are businesses that pleased auctions on various forms of real estate. A real estate auction company is not a new development. These have been around for years, but most of their customers were other businesses or dealers. Recently, more individual families are trying to make home purchases at these auctions in place of purchasing through a lender or renting a home.

I decided to find out more information about this procedure before I tried to attend one of these events. From what I found, I would attend an event at a prescheduled location, usually a hotel banquet room or a similar venue. When I would first get there, I would have to register and put down a deposit. This deposit depends on the company, but one company I found required two thousand five hundred dollars as a deposit. If I did not purchase anything, then I would get the funds back at the end of the event. If I did find something that interested me, the initial deposit on the purchase would be five percent of the entire sale price. This sale price includes an additional buyer’s premium, so I would have to be responsible for that as well. The buyer’s premium is an additional five percent of the sale price.

Before the event, I also got a packet from the company which included all of the items that would be up for sale that day. There was a small charge for this packet, but I was able to find the property I wanted by studying this ahead of time. It was a great way to buy my new home and I recommend the process.