221 S. Court Street, Maryville, TN

Broker participation is not offered for this auction event. 

Question: Not contingent on financing. What does this mean?

Answer: Buyers need to have their financing in place with a letter of approval from their lender. When not contingent on financing a buyer is expected to be financially capable of closing on the property within the established closing date. Should a buyer not have the funds to close they would risk losing their earnest money deposit. Additionally, bidding in the auction constitutes an offer and acceptance of the bid and becomes a contractual duty which may have legal implications. Buyers are free to seek their financing any way they choose from whatever institution or organization they decide. The sale of the real estate isn’t contingent on any type of buyers financial approval, appraisal, or inspection. Buyers need to be prepared and feel confident in their ability to bid and close as expected and stated in the terms and conditions. The process is generally the same as if you entered into a traditional offer and contract scenario which would have the same expectations.

Question: Not contingent on inspection. What does this mean?

Answer: In short the home sales “As Is”. A buyer can certainly hire a professional inspector perform an inspection. Typically this is done prior to the auction so that a buyer who has any question can feel confident in their bidding. Many buyers decide whether they want to have a professional inspection which is at the buyers expense. Even if a buyer pays to have an inspection performed this in no way guarantees that they will be the winning bidder on the property so each individual has to determine if they want to incur this expense. Inspections can also be performed after the auction, however, there will be no negotiation of price. The final hammer price and buyers premium will be the contract price. Not all properties allow for an inspection depending on the sellers directive ex: foreclosure, confiscated properties, tax sale, government owned etc. If an inspection is available and you would like to have an inspection performed prior to auction contact us to determine if a scheduled time is available for your inspector. 800.729.6466 or info@soldoncompass.com

Question: What is a buyers premium?

Answer: The buyer premium is the percentage or amount that will be added to the final hammer price to form the full contracted amount. Example: 10% buyers premium Real Estate hammer price: $100,000.00 Buyers Premium: 10% Final Contract Price = $110,000.00 The final contract price will be the sale price of the real estate and what the buyer will pay for the property.

Check out the topics in the FAQ section for information that will help guide you through the registration and bidding process. For those individuals who have never participated in auction we want to make you feel comfortable and assist you in every way possible. If at anytime you have questions please feel free to contact our office. Monday – Friday 8am-5pm EST. 800.729.6466 Email – info@soldoncompass.com It’s our pleasure to assist you!

Why would someone choose to sell real estate at auction?

1. Answer: The finest assets in the world are most ofter sold using the auction method.
2. Auction provides the most transparent method. Bidders can see at anytime what the bid amount is and choose if they want to bid more.
3. Allows for competitive bidding. In such a competitive real estate market buyers have become frustrated because they are unable to secure their dream home even when offering well above the asking price. The auction method allows for buyers to compete for their dream home.
4. In a traditional listing a seller can only counter 1 buyer offer. In an auction each buyer has the ability to up their bid in an effort to be the winning bidder for the real estate.
5. Buyer must have their funds secured prior to bidding in the auction. The sale of the property is not contingent on buyer financing.
6. The property sales as is. Buyers have the opportunity to inspect the property prior to auction and have a professional inspection done, however, the sale of the property is not contingent on inspection and is a true as is sale. So the seller does not have the hassle of back and forth negotiation.
7. The seller has more control over the buyer viewing process and reduces the disruption in their day to day lives. They know when the open houses are and can schedule their day according to the timeframe.
8. Seller knows the exact day and time that their property will sale.

MYTH: The property must be distressed.
FACT: Absolutely incorrect. Many people have the notion that if a property is selling at auction that it must have been distressed in some manner. When in fact auction is fast becoming a highly preferred method of selling real estate. After all, some of the most desirable assets in the world are sold using the auction method. Why should real estate be any different? The auction method is used for selling many types of real estate many sellers are discovering that the auction method provides less hassle, less carrying costs, there are no expensive updates and often costs them far less in sellers fees, less holding and carrying cost, is more transparent and allows for competitive bidding to take place, especially during an aggressive real estate market when buyers must compete to purchase the property they desire. Sellers have more control over the entire process and are better able to plan for their future. Key points:

1. Sellers have more control.
2. Less disruption in their daily lives
3. Know the exact day their property will sell.
4. Competitive bidding allows for property to sell at top dollar. There is no ceiling to the value a property can achieve.
5. Bidders must have their finances in order prior to bidding.
6. Truly sales As Is. There are no contingencies.
7. Eliminates stressful back and forth negotiation which equals less hassle for the seller.
8. Process is truly transparent and allows for bidders to compete openly.

MYTH: Buying a property at auction means I can’t view or inspect it.
FACT: We actually encourage buyers to view and inspect the property. In most cases buyers can attend open houses, schedule special showings, hire professional inspection services etc. There are some cases that this isn’t available for example legal conditions that limit this option. As we have all experienced potential restrictions on physically viewing the property due to COVID. In circumstances such as this we try to offer virtual experiences, images, videos, and virtual tours. Providing alternative resources for buyers to view and obtain information about the property.

MYTH: Fear that property will sell for $1. or sellers have to sell regardless of price.
FACT: Ask yourself, when was the last time that you heard of a desirable property selling for a dollar? In real life you probably have never experienced this scenario. When in fact the initial auction decision process closely resembles the steps in a traditional sale process. A professional auctioneer will meet with a seller and perform many of the same steps that would be done when selling traditionally. Many auctioneers are also licensed real estate brokers and will use a competitive market analysis to assist the seller in setting a realistic market goal and arriving a sellers reserve price. This approach is called a reserve auction. In a reserve auction the seller has the ability to set a reserve price at which they will accept, the price is set before the auction. In an absolute auction the seller agrees to sale the property for the last and highest bid. Another words this property is absolutely going to sale. Sellers will choose this option for many reasons. Generally, an absolute auction when properly marketed by a professional auction company will realize the highest bid price, simply because bidders know that the property is going to be sold for the final bid. Competitive bidding for these properties is usually fierce as buyers, investors, and entities go all in to be the winning bidder.

MYTH: Selling real estate at auction is the last resort.
FACT: False. Record prices are set on a regular occurrence using the auction method. Art, collectibles, automobiles, coins, and jewelry are just a few examples of how utilizing the auction method achieves the highest and best price often setting the market standard. In fact, real estate transactions can achieve much higher prices at auction than through the traditional sales approach. The auction method implements true competitive bidding and the most transparent way for buyers to compete for the property. Even the traditional sales method offered today by some brokers ask for highest and best offers, but they seller can only counter 1 offer out of multiples. The auction approach allows for all offers to be countered immediately to everyone.

MYTH: Auctioneers compete against traditional real estate brokers.
FACT: Real estate auctioneers are strong advocates for working with brokers and their clients. Working together brings a new level of service to a brokers toolkit that they can offer to their clients. Agents work with clients everyday that would be a perfect fit for an auction scenario and utilizing a professional company to offer the benefits of the auction method can be hugely successful for everyone involved. After all, we are all working in the best interest of our clients in order to obtain the best results possible.

Our real estate auction program can offer agents the ability to charge their clients less commission but still make a full commission for both the selling broker and buyers broker. Brokers, have a client that would be a great fit. Lets talk: 800.729.6466 or realestate@soldoncompass.com.

The auction method offers sellers a great option for selling their real estate and allows buyers to have a fair and transparent method of buying real estate. Much of these myths and others originated during the great depression and times of severe economic crises. Many of these myths and notions are relics of the past.
The auction method within the industry today is thriving and has evolved into an exceptional model for real estate transactions.

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800.729.6466 | Main Office
423.702.6180 | Chattanooga Local