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Buying at
AuctionI
 Frequently
Asked Questions:
Q: I've never
bought real estate at an auction; how does the process work?
A:
Buying real estate at auction is a very simple process.
However, it is important
for you to be informed and prepared prior to
auction day. You
should inspect the property, review the due diligence provided,
and don’t be afraid to ask questions.
Q: Why are
properties sold at auction?
A: Owners make a wise business decision to sell property in a
one-day sale rather
than continuing to incur carrying costs and
negotiating in a manner associated with conventional marketing.
Sellers are motivated to sell and offer you an opportunity to
purchase desirable property at a substantial discount. Over 95%
of properties offered
are sold at their
auctions.
Q: How are
auctions conducted?
A: Most
auction are conducted by open bidding. As a bidder, all
you need to do is hold up your bidder card and call out your
bid, or tell one of the Bidder Assistants what amount you want
to bid. The Bidder Assistants are there to help you.
Q: Do I need to be represented by a
Real Estate Broker in
order to buy at the
auction?
A: No. We do encourage buyer-broker participation; however, it
is not a requirement.
Q: Is financing available?
A: Some
auctions have financing available while others do not.
See the information listed in your specific
Auction Catalog to
determine this.
Q: What is required in order to bid at an
auction?
A: You MUST register with a valid ID (Driver’s License) on
auction day and receive a Bidder Card in order to bid. If you
are the highest bidder for a property you will be required to
make an earnest money deposit on auction day.
Q: Can I buy more than one property?
A: Yes. You just need to bring and present a separate check for
each property you intend to purchase.
Q: What does "Absolute Auction" mean?
A: Real Estate being sold "Absolute" means the property will be
sold to the highest bidder, regardless of the high bid price.
Q: What do the terms "reserve" and "absolute" mean?
A: An
auction where the property is being sold with a reserve
means that the property is being sold subject to seller
confirmation. When a property is being sold
absolute it will be
sold to the highest bidder regardless of price.
Q: What happens once I have become the successful high
bidder?
A: You will move to the contract table where you will present
your check and complete the Purchase and Sale Agreement
Q: What is a Buyer's Premium?
A Buyer's Premium is a percentage amount paid by the buyer and
added to the highest successful bid to determine the final
contract price.
Q: Is my deposit refundable if I change my mind after the
sale and decide not to buy the property?
A: No. If a buyer does not close for any reason on or before the
closing date, the initial deposit may be forfeited.
Q: When and where are closings held?
A: Closings generally occur within 30-40 days after an auction.
We can close with the sellers attorney or an attorney of your
choice.
Let
Wallace
Realty & Auction help you
purchase a property. Contact or
email us today!
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