AuctionSellsFast-D1 Rev. Freddie Phillips, Pres., Auction Sells Fast, LLC
Alissa Phillips, Louisiana Licensed Real Estate Broker
8055 Hanks Drive, Baton Rouge, LA  70812-4122
225-358-4663 (Alissa Phillips)
225-229-3341 (Rev. Freddie Phillips)
225-201-0390 (Robert Burns, Lead Bid Assistant)
Email:
  Freddie@AuctionSellsFast.com
LA Auction License # 1662
 

 

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R/E AUCTION vs. SHERIFF'S SALES

The only similarity is how property is sold:  auction.  In fact, even the auction techniques differ in that, rather than bidders yelling out bids (with Sheriff personnel acknowledging), the auctioneer is the only one calling out bids at a licensed R/E auctioneer's auction, and bidders acquiesce by holding up bid cards or bid paddles.

Here's a table outlining the other major differences between Sheriff's Sales and R/E auctions conducted by a licensed R/E auctioneer: 

ITEM UNDER CONSIDERATION

 

SHERIFF'S SALE

R/E AUCTION USING LICENSED R/E FIRM

PARTY INITIATING AUCTION SALE

 

CREDITOR.  Involuntary action resulting from 1st mortgage holder having filed suit on a note and culminating in Sheriff's Sale.   

 

SELLER.  Voluntary action taken by a motivated seller.
INSPECTION PERIOD NONE!!!!!!!!  Nobody has the legal authority to allow an inspection since the title remains in the name of the defaulting borrower (who certainly isn't going to grant such access)!  This is one reason bids at Sheriff's sales tend to be low (because buyers buy a "pig in a poke" in that they can't inspect a property's interior). YES.  Typically an open-house inspection 10-12 days before auction and, in the case of on-site auctions (see next row), one hour before the auction. 

PLACE OF SALE

Courthouse / Clerk of Court lobby/steps.  Here are photos of a live EBRP Sheriff's Sale auction (click thumbnails to enlarge): 

(notice how the guy in the light green shirt in the 2nd photo is REALLY struggling to hear!!)

Generally on-site.  Here's a photo (click thumbnail to enlarge):
 .
May be at hotel for multi-property auction.  Here's a photo (click thumbnail to enlarge):
 

QUALITY OF SOUND SYSTEM ABYSMAL.  Noise levels of bystanders and passersby often make it EXTREMELY difficult to hear people yelling out bids.  It's a fairly chaotic event. TOP NOTCH.  An auctioneer's sound system is designed to be powerful to where everyone hears the ONE person calling out bids:  THE AUCTIONEER!
LEVEL OF ADVERTISING The MINIMUM legal ad required by law.  Not very noticeable in the newspaper. EXTENSIVE.  Click Here to See First-Hand What the Advertising for an ASF R/E Auction Is LIke.

PARTY TYPICALLY WINNING AUCTION

FIRST MORTGAGE HOLDER.  Sheriff's sale is generally a mere formality for a creditor to obtain legal title to the property.  Once title is obtained, the creditor-turned-owner then sells the property (either on its own or through a R/E agent).  It is DEFINITELY the exception, rather than the rule, for a member of the public to end up high bidder at Sheriff's Sale, but it does happen.

Whoever bids highest, and at any ASF auction, NEITHER we nor the owner is allowed to bid!! 

TIMING OF PAYMENT FOR PROPERTY

Appx. 4 hours after auction, and ALL MUST BE  certified funds. 

10% deposit on auction day (ASF doesn't require certified funds), balance due in 30 days. 

QUALITY OF TITLE ASSURANCE

ZERO!!  Sheriff sells the title he has!  Foreclosure does "flush" junior liens and mortgages but does nothing to cure other title defects (e.g. prior heirship issues which have gone undetected).  In short, if the Sheriff has any problem with the title he has on a property and you purchase it, YOU inherit his title problem with no recourse against anyone. 

TITLE INSURANCE, the highest form of title assurance one can obtain.  See our Quality of Title Assurance Page.

 

REGISTRATION REQUIREMENT

NO, but you must step up with photo ID once declared the winning bidder. 

YES.

 

 

 

 
 
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