Auction How Do Real Estate Auctions Work In Florida With Alex Cooper?
Online real estate auctions on platforms like Alex Cooper are a streamlined and transparent way to purchase properties in Florida and beyond. Here’s an overview of how these auctions typically operate.
Timed Online-Only Auctions
These are entirely online, marketed for 3-4 weeks, and open for bidding for five days, with a soft close system that extends the auction if a bid is made in the final minutes.
Registration and Bidding
The bidding process is designed to be straightforward and transparent, with real-time visibility of bids to all registered participants. To participate in online auctions, bidders must register on the Alex Cooper platform, which will require a credit card hold or wire transfer as a participation deposit.
Property Analysis and Reserve Price
Before the auction, a detailed analysis of the property is conducted by the seller and Alex Cooper. The seller chooses a reserve price prior to the auction. This is the minimum price the seller is willing to accept, which is not disclosed to the bidders but ensures the seller has the right to accept or reject a bid below the reserve price.
Marketing the Property
Properties are extensively marketed for around three to four weeks leading up to the auction to ensure maximum visibility. This includes listings on major real estate platforms, the local MLS, email blasts, call campaigns and Alex Cooper’s own site, which draws a significant number of visitors.
Auction Day
On the day of the auction, bidders can participate online from anywhere. The final minutes of the auction are critical, as any last-minute bids can extend the auction duration to allow further bidding.
Post-Auction Process
If a bidder wins, they must sign the auction purchase agreement within 4 hours of the auction closing, this agreement is available to the buyer for review prior to the closing of the auction. The buyer must provide a deposit in the amount of 10% of the purchase within one business day of winning the auction.
The transaction then moves towards closing, which typically occurs within 30-45 days for residential properties and about 60 days for commercial properties. The closing involves transferring ownership and is handled by a title company.
Buyer’s Premium and Additional Costs
Bidders should be aware that a buyer’s premium will be added to the final bid price. The buyer’s premium is prominently displayed on the terms of sale section for each property. Additionally, buyers are responsible for all transfer and recordation taxes.
This auction format is advantageous for both buyers and sellers, offering a quick, efficient, and
competitive method to handle real estate transactions.
Can Real Estate Agents Auction Properties In Florida?
Yes they can! At Alex Cooper, we value collaboration with real estate agents and provide a robust platform to facilitate property auctions efficiently. By partnering with us, agents can leverage our extensive marketing and comprehensive auction services while maintaining their client relationships and commission structures.
Our platform ensures a transparent bidding process, maximizing property exposure and enhancing sale opportunities. Agents can list properties directly or refer clients, benefiting from our streamlined auction process to achieve optimal results for both sellers and clients. For more information, visit our Agents Page.
If your property is listed with an agent, talk to us about how we can collaborate to sell your property!