ADVANTAGES OF AN AUCTION
IF YOU ARE THE SELLER
Unlike a conventional listing for sale, an auction predetermines the sale date
Sale costs will be similar to a conventional listing. Closing costs will be less. Proceeds of the sale are more quickly received.
- TERMS AND CONDITIONS
Property showings, terms of sale, sale dates and closing dates are predetermined.
IF YOU ARE THE BUYER
- INSPECTIONS AND DISCLOSURES
All information on disclosures and the right to inspect are completed prior to the sale of the property.
- CONTRACT TERMS
The Contract of Sale is available for review prior to the sale.
In most cases, title work has been completed prior to the sale. This will result in a quicker closing.
FREQUENTLY ASKED QUESTIONS
WHAT ABOUT CLOSING COSTS?
Closing costs for an auction sale of real estate are similar to those of a traditional sale. The typical seller’s costs are for marketable title transfer (abstracting, etc.), site survey and revenue stamps.
Typical buyer’s costs are title exam, title insurance policy, deed filing fees and any needed staked surveys.
Closing costs, which are split between the Seller and the Buyer, are the closing fees charged by the title company for document preparation and the closing transaction.
Neither Smith and Smith, Realtors or Williams Auction Company have any ownership in the title companies, lenders or surveyors, nor are any fees collected from them.
WHAT ARE THE RISKS?
Any sale of Real Estate, Auction or otherwise, require a willing and able Buyer and Seller at agreed terms.
With an absolute auction a higher than expected price may occur.
There is also the risk of a lower than expected price.
A minimum price, or reserve price, can bset but will result in additional Seller costs.
SELLER’S DISCLOSURE/DISCLAIMER STATEMENT
RECEIPT AND REVIEW
Under Oklahoma law, the Seller must complete, sign and provide to the Buyer an Oklahoma Real Estate Commission (OREC) Residential Property Condition Disclosure Statement.
This Disclosure Statement concerns the condition of the property and must be delivered to the Buyer prior to acceptance by Seller of Buyer’s offer to purchase.
Further, the real estate broker is obligated to disclose to the Buyer any defects in the property actually known to broker which are not included in the Seller’s Disclosure.
If the Seller has never lived in the property AND has no knowledge of any defects, the law provides that the Seller can deliver an OREC Disclaimer Statement in lieu of the Disclosure Statement.
The Disclosure or Disclaimer Statement does not apply to residential new construction or vacant land.
It also does not apply to certain properties (such as government owned or foreclosure properties).