“What we’re seeing in the high-end luxury home market is there’s an over-supply of homes, because of demographics and various other trends, so it’s created an imbalance,” says Max Spann, president of Max Spann Real Estate and Auction Company in Clinton, New Jersey. “When there’s too much of one type of product, what are they worth? Auctions provide price discovery.”
You might discover a great deal for a beautiful home at auction. For example, located on 3.75 acres in the Murray Hill section of Scarsdale, an elegant, 10,565-square foot home is up for bidding (estimated to be worth more than $6 million). It’s listed with 10 bedrooms, six full- and three half-bathrooms and nine fireplaces. Amenities include a wine cellar, greenhouse and 7-car detached carriage house with an upstairs apartment.
Sound like this is the perfect fit for your family? Spann provides some tips if you’re heading to an auction for the first time:
Know what you’re bidding on: Get to know the home before you bid on it. “What exactly does it come with? Does the home need repairs or updates?” asks Spann.
Establish your budget: Not only do you need to know how much house you can afford, but you need a repair budget. “If no repairs are needed, you will only need acquisition costs,” says Spann. If it needs a new roof, flooring or appliances, you’ll need the money to pay for them.”
Bring the right paperwork: Each auction is different, but most require pre-registration. “You’re acknowledging that should you participate in the auction, you agree to abide by the terms and conditions of the auction,” says Spann. “If you’re the high bidder, you’ll sign a contract to recognize that it’s an as-is sale, you’ve reviewed the property information package and are acknowledging that you understand what you’re doing.”
Show me the money: To bid, you must bring a bank cashier’s check in a pre-established amount. “For this auction, it’s $200,000,” says Spann. “Show us that you have that, and it will be used as part of your down payment. You also need a personal check that would make up the balance of 10%. If you’re the highest bidder, you’ll be required to put down the 10% of the total contract amount which is nonrefundable.”
At the end of the auction when you sign that contract, your deposit is at risk. “If you’re not able to perform, you’ll lose your deposit, so keep a level head and bid with your mind not your heart,” says Spann.
If you’re the successful bidder, you’ll be escorted to the contract signing area where you’ll sign papers, put down a 10% deposit, and close on your dream home 30 to 45 days later.
For more information, visit http://www.maxspann.com/auctions/detail/exquisite-estate-scarsdale-ny