Next week: Auction, Auction! Two Real Estate Auctions are coming to Wenatchee!
On May 29th and May 31st, two real estate auctions are scheduled to happen in Wenatchee! The 29th brings a developer’s auction with Criterion Properties for a development at preliminary plat stage for 46 lots in Sunnyslope. On the 31st, there is a builder’s liquidation auction with Northwest Auctions for nine new single family homes with warranties in Wenatchee and East Wenatchee!
Auctions are, and were even before the real estate market turned last year, the fastest growing method of selling real estate in the United States. Why? The reason is simple: with a well done auction, sellers get their property sold, at the market price, with a minimum of trouble. In a market like we have today, where many sellers may still have their properties priced too high, a buyer gets the opportunity to purchase the property in the open market on an even footing with every other buyer. I have written extensively about the auction process. You can find an article about the process here.
The developer’s auction is for a property in which I am one of the owners. It is not a property that I am pressured to sell in any way. But the auction process, without the feasibility periods, slow closing and contingencies involved in a typical sale, is very attractive to me. This auction is scheduled as an “absolute” auction where the property sells to the highest bidder. The auction is at the property, at 11:00 a.m. on May 29th. Registration starts at 10:00 a.m. Developer auctions are typically held on weekdays so banks and finance companies are open and available to bidders.
I plan to attend the builder’s liquidation auction as well. The auction will be held at the Convention Center on Saturday the 31st. Registration begins at 1:00 p.m. and the auction begins at 2:30. The format of the auction is that there is an advertised minimum bid and the auction is “seller confirmation.” That means when bidding is complete, the seller reserves the right to accept or reject the final bid. It works something like a “reserve” auction.
Both auctions utilize a buyer’s premium, deposit or qualification to bid, and allow 30 days to close. The deposit, or qualification, of the bidder protects both the seller and the other bidders who know that they are bidding against only serious, qualified bidders like themselves.
It will be fun to see how well these auctions are received in the Wenatchee market! These events should serve as an introduction to auctions for Wenatchee. Real estate auctions are something that will be seen around here a bunch more, no matter what the state of the real estate market.
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