Buyer Info

The buyer knows the seller is committed to sell. Auction agreements obligate the seller to transfer title to the highest bidder in an absolute auction; the auction agreement obligates the seller to transfer title to the highest bidder that meets or exceeds the reserve price in a non-absolute offering.

The buyer knows he is getting the property at a fair market price. The buyer feels comfortable with the purchase knowing that there is a contending bid just one increment under the purchase price. The buyer has negotiating power. The buyer can withdraw from the bidding at any time until the gavel falls. The buyer sees many offerings in the same place at the same time. He is able to make market comparisons quickly and easily.

Remember:

• Buyers set their own purchase price at the lowest acceptable price
  
  
• Smart investments are made because properties are purchased at fair market value
  
  
• Buyers see "the market place" take shape with comparative bidding
  
  
• Auctions reduce the amount of time to purchase property by eliminating sometimes long negotiation periods.
  
  
• The buyer knows that the seller is committed to sell
  
  
• Buyers do not have to worry about variable contingencies because they are spelled out in the terms of the auction, i.e. closing costs and dates (these terms are the same for all bidders – level field for all players).
  
  
• The purchasing and closing dates are known
  
  
• The buyer knows he is negotiating fairly and on the same terms and conditions as all other buyers while they openly compete with one another; and last, but very important
  
  
• The buyers set their own purchase price!