Just recently the ownership group of The Landings at Sugar Creek, a brand new sound front condominium community located in Nags Head, announced that they will be auctioning off 20 condo’s in an Absolute Auction on March 27th, 2010.  So what exactly is an Absolute Auction, and why is everyone making such a big deal?

An Absolute Auction usually occurs in a distressed or liquidation event, when referred to Outer Banks Real Estate.  According to the definition by Answers.com, and Absolute Auction is “an auction in which the subject property is sold to the highest bidder regardless of the amount of the winning bid”.  Usually in Auctions the owner will set what is known as a “Reserve Price” where the property has to sell for at least that amount or the deal does not go through.  This is what makes an Absolute Auction so intriguing as it can yield very good deals for the liquid investor.

However, there are always catches to any perceived “to good to be true” real esate deal.  The Auction company for this particular event has set a “Buyer’s Premium” at 10% of the winning bid amount.  This means, that you the buyer has to pay the broker’s commissions and marketing costs in addition to the bid amount of the property.  While this is fairly normal, it still put’s a little damper on the event as buyers and investors are not used to having to pay these fees when purchasing property in a normal transaction.  This added 10% should be factored in during the bid process, or you may end up with not as good a deal as you first thought.

If you or someone you know might be interested in more information or attending this Outer Banks Real Estate Absolute Auction event, give one of our expert Outer Banks Real Estate Brokers a call at 866-928-2674.Landings at Sugar Creek

Auction Details:

  • Saturday, March, 27, 2010 at 1:00 pm onsite at The Landings at Sugar Creek.
  • Inspections are scheduled for Saturdays, 3/13 & 3/20 from 11 am – 4 pm, Friday 3/26 from 1 – 7 pm, Wednesdays, 3/17 & 3/24 from 1 – 4 pm, and day of auction from 10 am – 1 pm
  • For complete information package visit Tranzon.com