FAQ’s

What’s the benefit of purchasing property at a real estate auction?

Auctions eliminate the uncertainty of long negotiation periods and occur in a much reduced time frame. As a buyer, you determine the purchase price, not the seller. The open forum style of an auction allows you to see what the true market value of a property is since you see first-hand what others are willing to pay.

What kinds of property are available at auctions?

All property types are available including homes, condominiums, investment properties, land and commercial/industrial property.

Who buys at an auction?

Any individual or organization looking to purchase a property through other purchasing channels can attend an auction, including first time buyers, empty nesters, investors or building contractors.

Are auctions only used for distressed property?

Auctions are an additional method to sell property. This method is used when a short marketing cycle makes business sense.

Why is the owner selling at an auction?

The owner has made a business decision that an auction is the right method to market his or her property. Auctions offer an accelerated sales process for the seller and the opportunity to gather together buyers who have acknowledged their interest to purchase.

What happens on auction day?

You will register to become a bidder and receive a “Bidder Package” upon arrival at the auction facility. The packet will include a bidder card with your number in bold letters. Simply hold the card above your head when you bid so the auctioneer can note your interest when the time is right. A floor man may assist you in this process to ensure you get the attention when you need it.

Must I be present to bid?

Yes you must be present to bid; however, you can appoint someone to act on your behalf with a notarized, specific power of attorney.

Will you accept a sealed bid?

No,  all bids follow the open floor process with bidding cards.

Do you cooperate with outside real estate agents?

Every auction is different so please check with the website or marketing brochure. Often there is a commission offered to qualified buyer’s agents.

Does my agent need to register with the auctioneer?

Yes, your agent must register and be in attendance the day of the auction. They must accompany you through the entire bidding process and the following documentation completion.

Do I need to pre-register prior to auction day?

Generally there is a pre-registration deadline accompanying an auction date. This helps us determine how many plan to attend.

Where do I register for the auction?

Registration normally occurs at the property site, however please check with the auction website and brochure where all the relevant information is located.

Can I bid subject to financing contingencies?

Financing terms vary with each property and auction. Please read the specific terms and conditions on the website and in the brochure. In certain cases, the sale is contingent upon financing if you use the seller arranged lender.

Do the properties have starting bids?

The marketing brochure and website will normally publish the starting bids.

How many properties can I bid on?

Approved registered bidders may bid on as many properties as they like until they are the successful bidder and at this time they will be escorted to the contracting and documentation area. If approved by financing bidders may purchase more than one property.

Will I receive clear title to the property?

Yes, the seller will provide both clear title and title insurance.

Do I need a deposit to bid on auction day?

To bid in an auction, you must have cash equivalents (ie. cashier’s check) and a personal check for the balance of the required deposit in your possession. Please review the terms on the website or in the property brochure.

Is the deposit refundable if I decide to change my mind?

With a successful bid, a buyer signs a purchase agreement, this is a binding contract. A buyer can forfeit all or part of their deposit if they do not complete their purchase as contracted. In some cases, there may be a rescission period stipulated in which a buyer is allowed to reconsider purchase without penalty. Beyond that period, the buyer is legally obligated to purchase.

Do the properties offered have a previous asking price?

In most cases there is a previous asking/listing price for informational purposes only. This is not the reserve price.

Are the properties open for inspection?

Specific inspection information is normally included in the property brochure or website. This may vary from property to property so always check.

Can I have a home inspection company inspect the home prior to the auction?

Yes, inspections are normally scheduled during the open house period.

Can I buy the property prior to the auction?

Each auction has differing bidding methods, always check each auction of interest, in some cases bids are accepted prior the action.

Do I need to have any forms or papers with me if I buy a property?

Proper identification (passport, current drivers license), your address and phone number are also normally required.