Introduction...... advice needed

[dodge man]

I don't know what real estate prices are in your area, but around here, they really haven't fallen very much.

I am a land surveyor, and have on occasion surveyed parcels to split them up for auction companies. I've probably done this 6 or 7 times, and when I heard what the ground went for, it always seemed like top dollar to me. This was usually tillable ground, but sometimes there were homes also.

I had a co-worker win the bid on a house in a small town near here. His bid was quite a bit below what the place was worth, so it ended up being a no sale. I don't know what the people had to pay the auction company, if anything. As a rule I think the auction companies usually get pretty good dollar for a place, but you never know.

 

[blueriver]

In my area ... Real Estate Auctions are as follows ... seller has the right to sell with a reserve or absolute. Either way the seller pays the advertising generally 1-2% of the value, with a reserve the auction company has a no-sale fee of $1500. Commission is 6-10% depending on the value ... only payable if the final bid is the selling bid.

Equipment or personal property runs from 10% to 25% depending upon what is being sold with the seller paying the advertising.

 

[charlz]

The last 3 properties I bought and sold were done with out any real estate company involvement. All for sale by owner. All I had was a competent closing attorney and he handled everything.

The first house I ever bought was FSBO. The key is really the real estate contract, which is what the Realtor helps with after advertising and bringing the two parties together. I imagine this is what your attorney helped with. I purchased a standard real estate contract and used that. Once you have the contract the Title Company handles the rest.

With things like Craigslist making advertising easier (and free) I have to wonder if FSBO won't become more common?

 

[YanmarFever]

Who says you have to hire an auctioneer ?
Just have the auction & YOU be the auctioneer, the heck with paying fees, just do it yourself and pocket the dough !

Have an attorney handle the paper work with the high bidder.

quick & clean..... cheap too !:thumbsup:

 

[Slimpickens]

Thanks for all the replies. I decided to try selling on my own for awhile. Anyone wanting to move to N. Georgia on 50 acres with nice cabin and very close to Lake Hartwell, shoot me a PM.

 

[NorTracNY]

charlz touched on a VERY important point. Realtors "help" with the real estate contract. Note that it's a CONTRACT and they are not attorneys. I would highly recommend not signing the document until you have your attorney look at it. I would suggest having a good attorney (if there is such a thing) if there is anything unusual about the sale. There is a box on the standard contracts about lawyer approval. Our attorney let us know that they cannot change a contract that you sign. They can only deal with wording that might not be clear.

 

[Larry Caldwell]

Hey Charlz

To answer your question, its 50 acres (17pasture/33 hardwoods and pines) with a 2bd/2ba cabin and horse barn.

I don't know if it can be divided logically. It's secluded with one way in and out of the property.

So, what if the property does not sell? I assume I would have to pay the auction company something......


thanks for the reply

1) Get the timber appraised. You might be surprised. Contact a consulting forester. The timber might be worth more than the ground it grows on. The market is down right now, so the appraisal will be rock bottom. It could be worth several times that much 5 years down the road, which might be a great selling point.

2) Farm ground has gone up remarkably in price the last few years. Is any of that land farmable, or is it just rocks? If it's farmable, you might get more out of the ag market than the housing market.

Most realtors have their heads stuck in the housing market and don't understand rural property. The last place I sold I contacted a realtor, but I didn't like his suggested sale price. I walked next door and sold it to a neighbor for twice the realtor's appraisal.

 

[Slimpickens]

Excellent advice and "food for thought"! Yes it is farmable. We've even thought about leasing or raising some cattle to sell. Trying to be creative.....