An interesting development in the Real Estate market is beginning to be seen in the Wichita area. Round Robin Auctions have become very popular on the East and West Coasts. Don Burford, auctioneer with Jeff Lange Real Estate, stated “This is the first one that I am aware of in the Wichita area.” Round Robin Auctions are a way to move a property quickly and more easily than the conventional listing method. In a Round Robin Auction, the seller and buyers invest only a small amount of time into the process. Instead of sporadic showings this is concentrated into 1 -2 weeks and usually ends with the home being sold on the final bidding day. Burford says that this type of auction “is a new way to sell real estate.” It is much more buyer friendly, and I am seeing a lot of interest in it.”
This is not a live or absolute auction. Live auctions are characterized by strict rules, less time to think and are not contingent on financing, i.e. cash in hand.  In this Round Robin Auction on the other hand, bids are taken more leisurely.  As a bidder, you have enough time to fully consider your bids and what you are doing.  Also, both parties not legally obligated until an Acknowledgement of Bid form is signed. Perhaps the biggest benefit to bidders is that the Contract for Purchase is a standard private treaty contract allowing for inspections and regular lending procedures. Therefore, standard loans can be utilized, which brings more bidders to the auction.
As a seller of a home, a Round Robin Auction may be the answer to eliminate months of waiting for that right client to see your home. A seller may see from 10 – 25 people competing for their home instead of hoping that a contract will be offered by one random person. They also will no longer need to keep their house spic and span every day for months on end! This type of auction typically involves specific times for the home to be inspected by buyers who will then make bids at a different day or specific time. This is very convenient for the seller and buyers alike. The seller is usually protected by having a reserve price or the lowest price that they will sell the home.
As a potential buyer of a home at Round Robin auction, this is a much more buyer friendly format. The open houses are usually scheduled at several different times to facilitate everyone’s schedule. Buyers will inspect the property, review disclosures that may apply and receive a property information packet and bidding information. Buyers are protected by the inspection period so that they may ensure there are no hidden deficiencies. This is called due diligence and helps the buyer have time to make certain that the home or property is as characterized. In order to bid a buyer must have registered at the open house/inspection and have received a bidders information packet that contains the instructions and rules for that particular auction.
After the open house inspections are done the bidding will begin with phone calls made to the highest bidder, then the next highest and on down the list. This phone bidding gives the bidder the opportunity to increase their bid,
Probably the best part of the Round Robin Auction is the ease for the seller and the buyer to participate. The seller does not have to wait months but within a few weeks will have their home sold! Buyers have the convenience of being at home to do their bidding and not having the pressure to bid instantly as is the case in conventional live auctions. When the auctioneer calls a bidder he has three options; to increase his bid according to that auctions detail, to stay at his current bid or to quit the bidding. Believe it or not there are even several “bidding strategies” out there!
A Round Robin Auction may be just what you are looking for to sell your home or perhaps purchase the perfect one you have been looking for. Burford states   “A successful Round Robin Auction is great for the sellers, buyers, real estate agents and brokers. It is a great way to utilize the traditional quick sale time frame of a live auction, and yet buyer friendly in the lending and inspections process.”

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You may also email donb@jefflangere.com