Troy Fowler

We specialize in BPO services to assist service providers with our expertise in this field. We are also highly experienced in the areas of REO listings/sales and auctions. As the broker/owner, I have 3 decades of real estate experience and consulting with financial institutions (Citi Group, Deustche Bank, Bank of America, Merril Lynch, Key Bank, BNP Paribas, Credit Suisse Boston, Morgan Stanley and many more).

REO Properties
An REO (Real Estate Owned) is a property that goes back to Lender after an unsuccessful foreclosure auction.

With regard to REO properties, the Bank now owns the property and the mortgage loan no longer exists. The Bank will handle the eviction, if necessary, and may manage some of the repair process.

Selling REO's
Each Bank/Lender manages the REO process based on guidelines that are individually defined, but they all have similar goals. They want to get the best price possible and have often negotiated to achieve the highest possible price. However the market and expectations of Asset Managers may vary as inventories have increased and markets have slowed.

Property Condition
Banks always desire to sell a property in an "as is" condition. You may choose to hire professional inspection companies to determine the condition of the property. This is usually done to assist a potential bidder to better understand the highest price they are willing to offer based on the condition of the property.

The Auction Method Advantage
Banks are increasingly partnering with auction firms to offer multiple properties through the auction process. Depending on the property, location, condition, number of bidders etc., auctions can be an excellent method to purchase real estate.

FAQS

Why should I sell my property using the auction Method?

Selling your property utilizing the auction method accelerates the sale of your property by creating an intensive marketing campaign and scheduled date for the property to be sold. Intensive advertising of a property that will be sold via auction creates a sense of urgency that will bring all interested buyers together on a specified date to bid competitively.

What do I need to do on auction day?

It is advisable that you arrive at the auction site at least 30 minutes prior to the time of the auction. By doing so, you will have plenty of time to view the property, ask questions, review materials and register at our registration table. A real estate auction can be over in a matter of minutes so don't be late! Although there is no obligation to bid at an auction, all prospective buyers must register in order to bid. To register, you will need to provide evidence that you have the earnest money deposit required to bid. A valid driver's license or other acceptable form of identification is also required. The earnest money deposit must be in the form of cash, certified check or bank/cashier's check. Credit cards are not generally accepted. See the Terms and Conditions of each sale to obtain the specifics as to the deposit requirements for the property of your interest.

How do I bid at an auction?

In order to bid at an auction, you need to attract the auctioneer's attention. You can hold up your bidder card or you can shout out "Yes". Many times there will be a bid assistant circulating among the bidders who can also convey your bid to the auctioneer on your behalf. Conversely, if you want to take yourself out of the bidding, just shake your head no when the auctioneer looks at you, or answer "No". If you are ever unsure whether your bid is the high bid at any given time, feel free to ask a bid assistant or the auctioneer to confirm this. The auctioneer wants to provide you every opportunity to place your bid and will not allow you to bid against yourself.

Is the condition of the property warranted?

No. The condition of the properties varies. Properties are usually sold "as is-where is" without a warranty or guarantee of any kind other than a clear title. Auction Generation encourages all bidders to inspect the property prior to the sale.

What do I need to know before bidding?

Before you bid you should inspect the property to determine its condition. You will want to check property records for relevant information and find out what is included in the sale. You may also want to obtain a pre-approved mortgage or line of credit - the purchase and sale agreement will not include any financing contingency. You'll also want to review all auction documents including the Property Information Package (PIP), and if necessary, obtain professional advice.

What is an Absolute auction?

Property that is auctioned as absolute is sold without a reserve or minimum. The property is sold to the highest bidder regardless of price.

How does a Reserve auction differ from an Absolute auction?

Unlike an Absolute auction, in a Reserve auction a pre-determined price (or reserve) must be met in order to sell the property. This reserve may be disclosed to the buyers or may be kept confidential with the seller.

As a homeowner and/or seller how do I list my property for sale with Auction Generation?

Auction Generation provides both traditional (listing and selling) and as Licensed auctioneer #AU3595. We also work directly with Real Estate Brokers/Agents. Please contact Troy Fowler at (305) 206-0349 for more information.

As a potential buyer, what do I need to bring with me to the auction to bid on the property?

All buyers intending to bid on property must bring with them: a valid form of picture identification. You will also need to bring a cashier's check payable to yourself. The amount required will be located in the brochure or the Property Information Package (PIP).

What happens to my deposit money if I am the winning bidder? What happens to my deposit money is if I am not the winning bidder?

Your Cashier's Check will be applied towards your deposit due on auction day if you are the winning bidder. The money will be held in an Escrow Account. If you are not the winning bidder, the Cashier's Check will be returned to you once the auction is over.

If I am unable to attend the live auction event, can I still bid?

Yes. Auction Generation accepts offers prior to the auction (Absentee bid). Bids may be submitted online or via telephone at (305) 206-0349 the day of the auction, providing you have been pre-registered to bid.

Why should a buyer place an offer prior to auction?

You have the option to purchase the property prior to the scheduled auction date. The property will be withdrawn from the auction if the offer is accepted.

Can I bid on behalf of another individual or entity?

Yes. The person who bids on behalf of another individual or entity must be prepared to sign personally on the day of the auction, should they win the property. If the person or entity is unable to take transfer of the property for any reason, then the person who bid at the auction will be deemed the purchaser and will become responsible for all the terms of the contract.

Are Auction Generation sales contingent on inspection or financing?

All sales are on an "As-Is, Where Is" basis. Buyers are encouraged to do their due diligence and begin making their financial arrangements prior to the auction. auctions are non-contingent transactions and are NOT subject to inspection or obtaining a mortgage. The seller must convey clear title to the property, free of all liens and encumbrances.

Can I preview and/or inspect a property prior to auction?

Yes, Auction Generation holds several preview sessions in the weeks prior to the auction. At this time, buyers will be given the opportunity to view the property and pick up a Property Information Package (PIP).

What is a Buyer's Premium?

It is a premium paid by the Buyer. The fee will be added to the high bid price. It is most often a percentage amount of the highest bid.

How long do I have to close on the Property?

Please see the specific Terms & Conditions of each auction to determine the length of time until closing.

In today's slowing real estate marketplace, having the option to spotlight your property and maximize visibility is a critical benefit to getting it sold. It is, by far, the best possible method of attracting as many possible buyers on a single day and using a competitive bidding process to achieve the highest possible sale price.

Buyers act on your schedule by complying with the terms, conditions and sale date of the Auction. They are committed to sale on a specific date, therefore, they conduct their due diligence in advance and are prepared to bid on the day of the sale. Closings typically never exceed 45 days beyond the sale/auction date, offering you a complete timeline from the minute you agree to move forward.

Whether your property has been on the market longer than you expected, you wish to avoid a long drawn out sales and negotiation process, or are just ready to make that move that will enable you to move forward on your schedule.

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In Wednesday's New York Times, the business section featured an article about real estate auctions and the prices that were being offered for properties in major cities throughout the country.

I focused specifically on Miami, since our auction company is based in Miami. A graph at the bottom of the page depicted income to value ratios of 6 major cities, including Miami. Miami ranked the third worst city when determining affordability of housing.

The point being that Miami and much of Florida still has a way to go in the form of further price reductions to be in line with much of the rest of the U.S in housing affordability. This will play a major factor in helping us to return to a normal sales cycle. This in large is determined by the amount of available housing on the market.

At the moment Miami Dade has close to a three year supply of housing on the market. A healthy supply of available housing is considered to be 6-9 months by many industry experts. Obviously we have a very long way to go to achieve these ratios. I continue to promote the auction method as a key sales alternative to move inventory and accelerate the sales cycle so we can achieve a healthy housing market once again.

As most of already know, Florida is heavily dependent on housing and tourism as key indicators of our economy. I do not think many of need to be convinced that consumers will not be able to or have the desire to re enter the market or spend until our confidence in the housing market returns. Let's get to work and promote auctions to help us move towards stabilizing this crisis.

As a strong partner with Realtors, we provide a 3% payout to co broker any sale and make it very affordable for the seller to auction. For more information, please call Troy Fowler at Auction Generation. He can be reached at 305-206-0349 or visit the company web site at www.auction-generation.com to learn more.

Having spent several years working helping sellers/buyers understand the multiple benefits of a well managed real estate auction, I have learned that some sellers whether they be individuals, developers or financial institutions cannot get beyond a stigma that this is a negative sale

Real estate auctions have been a very successful medium for selling property throughout the U.S. and many parts of the world for many, many decades. Some areas of the U.S. are much more comfortable with the auction process and view it as a very viable option when they are considering the sale of their property.

When it comes to South Florida, in my opinion much skepticism remains and many walls need to be broken down in educating the public regarding the multiple benefits that auctions can offer.

As if the condo market was not already filled with enough challenges, new guidelines from Fannie Mae have just made it significantly more difficult for buyers and sellers alike to finance the sale of a condo unit. The new guidelines are mentioned in Sunday's Miami Herald (04/12/09), beginning on the front page. It is no secret that many of South Florida's condos will not meet the guidelines to qualify for these tougher new rules and only serves to add one more nail in the coffin for sellers and developers alike to add one more set of restrictions to an already struggling market. To quote Peter Zalewski, President of Condo Vultures.com "There is no question developers are discounting so dramatically because it is virtually impossible to obtain Fannie certification," Zalewski said

I think it is even more critical, now than ever before to help sellers and developers in particular recognize what can auctions offer. By having the opportunity to finally be free of properties that may be slowly deteriorating both financially and in some cases structurally, as they sit month after month and in many cases year after year with not even an offer can be an unbearably stressful. I could go on and on about this topic and hope that anyone who has the slightest interest in the auction process will visit my web site to learn more about the benefits of attracting qualified buyers and selling properties in 45 days or less through the auction process. The site includes a brief video that covers the general topics one needs to understand about an auction. The site address is www.auction-generation.com

Our end my article with our companies mission statement, Take Action, Choose Auction!!

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