Real-Time Online Real Estate Bidding NOW HERE
Monday Morning Coffee - April 18, 2022
"It is challenging to live a humble life while consumed with living in the epicenter of the selfie".
- Phil Ortego (paraphrased)
NEW LISTING - ONLINE BIDDING STARTS THIS FRIDAY We will be bringing to market a lovely single-family home in the Middle Sound / Ogden area of Wilmington (28411 zip) this week as a LIVE ONLINE BIDDING Auction sale.
The property will hit the MLS and the address announced this Wednesday, April 20th with showings and online bidding starting on Friday, April 22nd. We will be having an open house on Saturday and Sunday from 12 to 4 each day. Online bidding will be open until Tuesday 4/26 at 5:00 PM Eastern.
If you are currently working with a real estate agent/broker please disregard this information and contact your agent. Otherwise, if you would like to learn more about this upcoming auction or how our online bidding and auctions system works please visit https://waypostauctions.com/contact/
Waypost Auctions is a DBA of Waypost Realty, LLC Auction Firm License NCAL #10554, Auctioneer NCAL #8822 http://WaypostAuctions.com
Hey guys, this is Buddy Blake, and I come to you this week because we are getting ready to do something we've never done before. And as far as I know, it's certainly never been done in our market. And I've not seen it done nationally, together. First off, I want to introduce you to Lauren Johnson. Lauren.
Lauren is with our company Waypost Realty. But Lauren brings us also, he has a, he's a licensed auctioneer, has been for a long time.
2009. Of course, back then you did it for a different kind of market.
Because you had depressed market.
Well now, we've got our firm auctioneer license. And one of the issues that we just keep seeing happen is we've got so many buyers looking at properties. They're wanting to make offers. They don't know what to make the offer. We don't know what kind of backend deal's getting done.
It's not transparent at all.
Not transparent. You don't know whether to offer 100,000 over or 2,000 over. Or you don't really know if there really is a buyer out there, if your offer's being shopped or something. So what we are doing is, we're going to be doing it this weekend over in Middle Sound. We're not going to tell you the property yet because it's not going to go live until this Thursday, so I can't tell you where it is, just because we got to abide by all the rules.
But we will tell you. It's going to be for under $400,000 starting.
And what we're going to be doing is an online bidding. It's going to be for sale, but also it's going to go through the bidding process, AKA option, technically.
Which will be a five-day bidding period.
Okay. [crosstalk 00:01:36] Let's walk through it for a minute. You guys are going to have an open house. Tell us about that.
Yeah, we're going to have an open house Saturday and Sunday from 12 to 4, this coming Saturday and Sunday, 12 to 4. The time period in which folks can see it is during that time period. And then the bidding starts, online bidding starts that same day.
In other words-
Saturday at noon.
So we're going to put it in the system so it gets out to all the websites, in the MLS, it'll be in the MLS. And we encourage people to have their agents.
Absolutely. You will work through an agent. We love agents. Your agent is going to have a lot of information that's in what's called agent remarks. And documents of how to do this will be in the MLS system. And if you don't have an agent, you can reach out to us and we can certainly help you through that. They're going to be able to place bids online.
And see what everyone else is bidding at the same time.
That's exactly right. In other words, you'll see this thing run up and it's going to go for five days so everybody gets a shot to actually buy something.
And it's going to be in $3,000 increments too.
Because of the price range of this one.
Okay. And then what are they going to need to do? Let's say somebody wants to bid on the property. It's a new term for us.
We've always used it loosely, but officially we couldn't use it. But now we can.
Yeah, exactly. In order to regis- first thing you do is register on the site. And in order to be approved, that is a waypostauctions.com. In order to be able to bid you register on the site. You also provide us with either proof of funds or a preapproval letter. If you don't have one, Paul Bowers here at Waypost Mortgage can help with that. There's also a 2% buyer's premium that would be added to the final bid. And that form needs to be signed and agreed to as well. Once we get those documents, then you'll be approved for bidding.
Now, if they're working with an agent, they need to-
Have that agent do that.
They need to register their agent and then we will coordinate with that agent. We're never going to cut the agents out.
So if you're working with an agent, do not try to bypass your agent in any condition whatsoever.
Let's talk about the buyer premium, because that is a term that you guys in the auction world are used to, like 5 to 10%. If you've bought cars or houses at auction-
Or anything on Ebay.
Well, that's exactly right. There's always a 5 to 10% premiums. So what does a 2% buyer premium mean?
Okay, let's say, for instance, the winning bid, the highest bid, winning bid was $400,000.
2% of that $400,000 is $8,000. That would be added to the 400,000 so the sales price is actually 408,000.
408,000. And the 8,000 is for the auction fee.
Now, in this situation, if they got an agent, that agent will still get compensated through the MLS.
That's a separate [crosstalk 00:04:31]
Nothing's different from the agent.
Okay. They got to have a preapproval.
They have to have a proof of funds. And if you don't know what proof of funds means, that means you're buying cash. There has to be proof where it's coming from. And if that is a shocking news for you, then you haven't been trying to buy property.
Because no seller is going to take their house off the market without some kind of proof that you can actually [crosstalk 00:04:53].
Just your word.
Yeah, exactly. I know that offends some people who ... "Do you have the money? I need to see that you've got the money." And they get all offended. And I'm sorry, but this is the way it works.
[inaudible 00:05:05] Show me the money.
Let's think through some of the, what are the issues that we're going to have around this of can people ... Let me ask you this. Let's say an agent's got a buyer and they want to present a regular offer to purchase ahead of time. They could still send it in.
Correct. That's right.
But just to understand, it's still going to go through the auction process for that five days.
Okay? And you actually, there's a countdown on that at waypostauction.com for that particular auction or that property.
And because this will be our very first one coming up, and they will see the countdown.
Right. And this was going to be, it's going to close Wednesday at 5:00 PM.
Wednesday at 5:00 PM. Eastern standard time.
And then basically you'll be able to increment your bid. And let's say that you go in there and you make a bid, and you're going to get notified if you're out bid so that you always know what's going on.
Yeah, it'll send [crosstalk 00:05:59] That's exactly right. And so you're going to see, you're not going to see who the people are, but you're going to see the bids as they go up.
Now, what happens after ... All right, it's done. You got somebody that bid up here. What happens then? Is it closed and done? Or what do you do them?
No. Everything's going to be the same as a traditional real estate transaction, as far as the documents and the forms and whatnot. But they're going to need to provide us with the due diligence fee.
And then the earnest money. And then as far as the terms of the auction, they got to file the terms of the auctions in their contract they present.
And then we work with their agent if they have one, or with us.
[crosstalk 00:06:45] Due diligence [crosstalk 00:06:46].
The offer to purchase is the same. They still get the due diligence period. And now the difference in this model too is some of the terms are going to be laid out by the seller ahead of time in this.
That's right. The buyer will have to agree to that as well.
That's exactly right. For instance-
Due diligence [crosstalk 00:07:03] no reason to be if they're not going to agree.
Right. If you're not going to put up X amount of due diligence fee, it's going to tell you what the due diligence fee is going to be. The seller's going to go ahead and name that ahead of time, so really all we're talking about is price.
All the other terms are worked out.
Are already spelled out beforehand.
That's exactly right. Now, closing date and things like that-
That can be, that's, yeah.
But now do keep in mind, let's say that the seller, which a lot of sellers today need to be able to stay in the property 30, 60 days afterwards, what's called a seller possession. If the seller, if our client, the seller needs that, they're going to stipulate that as part of the sale up front.
That's right. That's part of the terms.
Don't even bid if you're not going to be good with that.
This really clears and cleans up. The word that keeps coming up ... We just had our big mastermind around, okay, we're getting ready to do this. What are all the unforeseen errors that we're going to see or problems or questions around it. And really the word that kept coming up is transparency.
You're going to see, I'm going to send an email out about the exact property later this week once everything is kind of ready to go. And it'll go into the MLS, so this is not a hidden thing. It'll be all out there. Everybody will see what's going on.
It's going to be transparent it too, the whole process.
Yeah, exactly. So if you have any questions, all you got to do is go to waypostauctions.com and click the tabs at the top, how it works, strategies, all these kind of things. There's a lot of ... You can answer there. You can get your answers there. Or feel free to just reach out.
Hit the contact button on there, fill out your question or your information and Lauren will be fee- he'll be handling those.
Getting back to you as soon as possible.
Lauren is the auctioneer, handles the auction side of it. In this case Cheryl Baucom is the listing agent.
She will be handling the listing side of it, so it's going to be an interesting run.
It's going to be [crosstalk 00:08:58].
It's going to be fun. But open house two days, Saturday and Sunday from 12 to 4. And everybody's going to have a shot at buying this thing. These properties in this area, it's literally almost right across from Ogden Elementary, so they just don't come up very much, so this is going to happen. And we told our sellers, "Listen, you're going to be our very first guinea pig on this so we're probably going to run into some things that we're not used to." Anyway, it's going to be fun. If you would like to learn more about this, give us a call, reply back to this or just reach out to us.
If you're thinking about you would really like to sell your property this way, or you'd just like to learn more about the process, please let us know because we're trying to really create more transparency because we've got a lot of buyers that are just getting really frustrated.
Frustrated, oh yeah. Giving up.
Because they don't know the game. It's like, "Okay, I can play monopoly. But I don't know here what the game is."
But guys, thank you a lot. I hope you have a great week ahead. And if you have any questions, please let us know. And we're here to help. And we may get this a few things wrong the first time, but we're going to fine tune it. And we're looking for more people to do this with because we want to do things differently. It's a different market.
And we want to do things differently. And we want sellers to be able to sell their house before these interest rate crank up much more, which takes out a lot of buyers. We don't want to see what happened in '07 seven where a lot of sellers missed it and had to wait 10 years to get back to where it is. So guys, if we can help, let us know. Thanks.