How to buy or sell property at a real estate auction

Panama City Beach Real Estate - Article by Jennifer Mackay

If you ever wondered how to buy or sell property  at a real estate auction house, then keep reading…

Real estate auctions are not a new type of real estate sale.  They have been around for many years.

Auctions and the real estate agent

Real estate agents may sometimes recommend a property be placed for auction rather then listing it in a local Multiple Listing Service, typically referred to as the MLS

Many agents are not aware that when recommending a property be sold at auction, they can continue to maintain a working relationship with the seller.  A real estate agent can continue to assist a seller by:

  • Being present during meetings with the seller and auction house
  • With draw the listing and receive a referral from the auction house
  • Provide the auction house with property, mortgage and seller information

Typically, the real estate agent will retain the seller as a long term customer by assisting to sell the property quickly and provide advice through out the campaign.

In addition, buyer representatives can receive a commission on the sale of an auctioned property by submitting a Brokers Participation Agreement to the auction house 

There may be many benefits of selling a property at auction which may include:

Properties sold with clear title

When properties are sold, a title search is performed to verify and validate that there are no outstanding liens, judgments or other issues that can “cloud