Auction or not to Auction

JOHN RICE ASSOCIATE BROKER | REALTOR

Holy Cow are the deals amazing right now! It seems that every time I buyers are facing a decision of what is the BEST solution for acquiring a property these days.  One of these sources are  online and on premises Auctions (non-FHA.)  So here’s a little info on non-FHA auctions:

#1: As a buyer, you can have a buyers agent represent you on an auction transaction just like another transaction and in almost all cases, you’re not paying additional percentage for their expertise.  You’re paying a fee to the auction house called a buyer’s premium that is usually in the neighborhood of 5%, and will be charged whether you hired an expert to assist you or not.

#2: Auctions can be a great deal – but you need to be comfortable with what risks are involved and be ready to act! Auctions will almost always have a period of time (sometimes only 1 short window) when you can view the property.  View this with your agent to ensure you know what risks are built into the property to the best of your knowledge.   Most of the time, auctions are set as a final sale so you DO NOT have the ability to have an inspection and your offer is not contingent upon anything.  Meaning, when your final bid is accepted you owe the down payment (usually a set minimum or 10% whatever is greater) and the rest is due within 30 days. 

#3: As a result of these items they are not for the novice or the faint of heart. Ask yourself, if I obligated myself to an $80k debt tomorrow, what risks am I willing to take? What am I not willing to do? If the minuses out weigh the pluses, move on.

#4: Just like eBay, sometimes home auctions can create frenzy that pushes the price far beyond what you would have paid in a non-auction situation.  It’s important to set your parameters before going into the auction so you know when its time to pack up and stop bidding.

Auctions, can be a tremendous way to obtain wonderful deals, but often these homes are going to auction for a reason, so its important to check with a professional who can get you history on the property, the area and know what your potential upside is going forward.

FHA auctions are something completely different with contingencies allowed.  Stay tuned for more information on these, or simply email us.

Happy hunting!

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A few words from our clients:
John helped us sell our house when we moved out of Grand Rapids 3 years ago and recently helped us purchase a new house when we moved back. He is very professional and knowledgeable of the area and market. I would recommend him to anyone looking to buy or sell.
S&K Weber
We have worked with John multiple times now, both buying and selling homes. We 100% recommend him and he’ll always be our go-to realtor for any future real estate needs. John is experienced in the industry and well-known and respected. He is extremely professional and knowledgeable, on top of being an all-around nice guy. He is responsive and answered all of our questions along the way. We asked John for several referrals for other services (lender, cleaner, etc.) and we were very happy with all his suggestions. John is honest and will listen to your concerns/opinions. He is never pushy, but gives great advice based on his years of experience. We are so thankful for the guidance we received from John to make our recent home buying and selling experience successful and quick! If you need a realtor, call John.
G&E Webb
We can’t say enough good things about John. He is an awesome realtor! We bought our home with his help and just recently sold it with his help. He is highly knowledgeable about the Grand Rapids area market and his expertise and professionalism has shown through both times we worked with him...John is a wonderful communicator and a genuine person. His sincerity has been evident in his commitment to making the purchase and sale experience as seamless and informed as possible. We consider ourselves incredibly fortunate to have worked with John and strongly recommend him without reservation!
E&T VanBuskirk
We have worked with John to sell 1 home and buy 2 homes and he is an incredible realtor! He is professional, prompt with communication, honest and patient. We had quite the list for what we were looking for and John was always available to answer questions and get us in to look at a home. His knowledge and connections in the industry made both the buying and selling process go smoothly. We simply cannot recommend John enough!
Chase and Nicole O
John Rice is hands down one of the best realtors in the Grand Rapids and surrounding areas. We have utilized him as our realtor on two separate occasions, once over 10 years ago, and again over the last several months to buy/sell. He is incredibly knowledgeable and uses his expertise to help guide you in your choices throughout the realty process. He is professional, kind, has impeccable attention to detail, responsive, and clearly loves what he does. Choose John for your realty needs…he is the best of the best!
Amanda W
We moved to the Grand Rapids area 11 years ago and John was very patient as we found our first home and made the experience absolutely seamless! When we were ready to sell and buy again we knew to reach out to John. As we remembered and appreciated, John is an absolute professional and was and advocate for our best interests at all times during this wild market. We found great value in our new home and he helped us get top dollar for our sale. Grateful to have him on our side though the whole process. You won’t be disappointed!
Lance W
Purchased and sold with John, he is: Professional, an extremely good communicator, precise, and acted on our behalf 24/7. He kept us up to date on listings for purchase and preparation advice for selling our home. He was knowledgeable about neighborhoods. Photography for sale of our house was impressive. We were appreciative of the guidance regarding making offers, inspections, when to list our home, writing contracts, detailed review and presentation of offers on our home and being realistic about our purchase of new home. Great experience, Great Realtor.
J&G Junod
It was a wonderful experience working with John. His professionalism, honesty, experience, and knowledge of the Grand Rapids market, helped us in multiple ways. John sold our home in one day, was honest about what we could expect from offers, and was spot on. As we progressed toward finding our new home, again, he was extremely knowledgeable about the neighborhoods, home values, and history of the homes. We are more than happy to say, that he helped us find our dream home within our budget! Anything I needed, he was there through emails, texts, or phone calls. He definitely put in a lot of work for us. Without a doubt, I will ask for his assistance again when the time comes. Thank you John!
T&A Lascari