In any real estate purchase, closing costs vary from transaction to transaction, and from state to state. That’s the case at a luxury real estate auction as well. Potential buyers should review the Terms and Conditions of Sale for each specific auction in which they plan to participate, so they are aware of and prepared for the expenses involved.
Do your research, review the Auction Terms and Conditions, and if desired seek professional guidance from your real estate agent if you plan to participate in a luxury real estate auction. Though not set in stone, upon your review of the Concierge Auctions terms, here are the terms you will typically find:Seller:
The Seller pays for the third-party title examination fee, the title search fees and the title insurance premium, and they are responsible for curing any title related defects prior to auction.Buyer:
The Buyer pays the revenue stamps or other taxes due upon filing the deed, as well as a buyer premium, which is a pre-negotiated rate that is included in the Terms and Conditions of Sale. Buyers may also have costs related to any inspections, appraisals, or surveys conducted on their behalf prior to the auction.Seller and Buyer shared costs:
Other closing fees are split in a manner typical for the county and state where the property is located, and the current year’s real estate taxes are prorated through the day of closing.
All of the due diligence is conducted prior to the auction. One of the major benefits of the luxury real estate auction process is that the closing period is quick – around 30 days after the auction in most cases. Which means one of the more difficult parts of any real estate transaction, closing, is streamlined. Much of the pain is taken out, as the hard parts were done before the bidders ever raised a paddle.
Closing after a real estate auction will be the easiest transaction of your life!
Have questions on any costs associated with closing a property through a luxury real estate auction? Leave us a comment or click below for Frequently Asked Questions about Buying Real Estate at Auction.//
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