Together, we can make real estate affordable again!
The Innovative Domus Optima™ Cohesion Real Estate Auction is an effective public method of real estate selling, which combines a public crowdfunding campaign with a traditional timed minimum bid auction for the crowdfunding backers.
The Domus Optima™ Cohesion Real Estate Auction system allows the winning auction bidder to buy real estate property for a fraction of its market value while providing the auction seller with a fair market value of the property in the shortest possible time.
The property price, anticipated by the seller, is decreased for the perspective bidders by a cohesion amount, contributed by all backers (perspective bidders) through the cohesion crowdfunding campaign.
Please find below a simplified flow chart of the Domus Optima™ Cohesion Real Estate Auction:
The seller submits a Domus Optima™ Cohesion Real Estate Auction listing application through his/her listing real estate agent/broker.
Upon obtaining home inspection and property appraisal reports, as well as completion of all Domus Optima™ Cohesion Real Estate Auction listing formalities, all auction terms are set, and the seller’s property is listed for the upcoming auction on an ‘as-is’ basis.
Potential buyers (along with their cooperating agents/brokers, if any) complete their due diligence (including visiting the seller’s property), obtain mortgage pre-approval (if mortgage is required), and register to participate in the upcoming Domus Optima™ Cohesion Real Estate Auction.
The cohesion crowdfunding campaign opens for the referred real estate property with an all-or-nothing funding model.
If a funding goal is not reached by the set deadline, all backers receive their contributions back and the real estate property delists from the Domus Optima™ Cohesion Real Estate Auction.
If the funding goal is reached, all backers are rewarded with a certain number of auction bids proportionally to their respective crowdfunding contributions and the second step of Domus Optima™ Cohesion Real Estate Auction begins.
The second step of Domus Optima™ Cohesion Real Estate Auction represents a traditional minimum bid auction model with ascending bids, pre-defined bid increments and auto-extending auction closing time.
The minimum starting bid for the auction is calculated by deducting a total NET crowdfunding contribution amount from the property listing price. Backers place their bids online.
If a bid is placed within the last 30 seconds of the Domus Optima™ Cohesion Real Estate Auction, the closing time will be automatically extended for an additional 30 seconds to allow other bidders to have a fair chance to compete.
At the auction closing time, the bidder with the highest bid wins the Domus Optima™ Cohesion Real Estate Auction.
The winning bidder provides a deposit along with all legal paperwork to the auction. The balance of the winning bid amount is due by the property closing date. The winning bidder is responsible for the payment of all his/her closing costs, including, but not limited to Land Transfer Tax(es), Legal and Government Registration Fees.
On the property closing date, upon fulfilment of all legal formalities, the ownership and possession of the property is transferred to the auction winner.
The seller will receive a cheque or bank transfer for the proceeds of the sale (winning auction bid amount plus a total net cohesion amount contributed by all backers through the public cohesion crowdfunding campaign).
The seller pays commission on the property sale price (winning auction bid amount plus the total net cohesion amount) to the involved parties set in the auction listing agreement.