Buying through an auction is the most transparent way to buy anything. Buying Real Estate in our view should be no different, and we’ve been doing it that way throughout Canada since 1999. Below you will find the steps involved to get yourself approved to bid.
If you have any questions related to the offer documents, bidding or bidder registration Please contact Michael Marienwald Broker of record Anchor Realty 877-672-6604 or firstname.lastname@example.org
As with most any sale of Real Estate there is a commission charged, and it is built into the sale price. At auction, the commission amount is added on top of the final bid price. Although this may seem like you are now paying the commission in reality it is no different that having it included in the sale price since it always comes out of the proceeds of the sale (buyer pays the seller so much for the house and the seller pays the real estate brokerages the commission on closing).
Example; If you were the highest bidder for a property and your final bid was $500,000, and the property had a commission amount of 6% plus HST, the final amount on the agreement of purchase and sale would be $533,900. Therefore if you wanted your purchase price to be a maximum of $500,000 then will want to stop your bidding at approximately $468,000.