Frequently Asked Questions
Aren't auctions just for selling of personal items and distressed properties?
NO! Although auctions are used to liquidate property, they are becoming the fastest growing segment in the real estate market. The increasing popularity of real estate auctions can be attributed to one simple fact--they work. Auctions are being used to kick off large residential development projects. In more and more cases, real estate will yield a higher net selling price in a shorter period of time than traditional brokerage.
Who sets the price at the sale?
You do! The auctioneer may start with an asking price, but ultimately its the bidders that determine the price. The seller has the right to no-sale the item, unless the sale was advertised as an absolute auction.
Does the item come with a warranty?
No! All items are sold as is, where is, and all sales are final. Buyers have the sole responsibility of examining and judging each item for their own protection.
When do I have to pay for the item I bought?
The item must be paid for on the day of the auction before you leave the premises of the sale. At real estate sales, the buyer will need to make a down payment based on the conditions announced prior to that sale.
Who is responsible for any damage to the item I purchased?
Merchandise becomes full responsibility of the buyer at time of purchase and the buyer assumes all risk of loss or damage.
What happens if I bid, and don't pay for my purchases?
Buying at auction is a contractual obligation, and you should be aware of the terms and conditions before you buy. Legal action will ensue unless the invoice is paid in full.
For Real Estate Auctions
Are all auctions foreclosures?
Most auctions that our firm does are not foreclosures. The sellers are using the auction method to generate excitement and get their property sold now.
May I have the property inspected?
Yes, please feel free to have the property inspected. Inspection, however, must take place before the auction. The house sells “as is”, “how is”, “where is”, so if you feel something needs to be done to the house, bid accordingly.
How do I know I am not paying too much for the
property at the auction?
Do your homework ahead of the auction. Look at what other similar properties are costing. Know that you are buying the property at true market value—the amount someone is willing to give for a property on a given day. Know that if you buy the property, someone else thought it was worth that amount that bid against you.
How does the auction itself work?
The auctioneer will start at a price and work down until he gets a bid. From there he will continue to take bids until they stop. At that point the auction will take a recess of 5-10 minutes for buyers to think, call others, etc. Someone new may decide to enter the auction at that time too. After the recess the auction continues until bidding again stops. An additional recess is usually taken to confer with the sellers to make sure they are comfortable with the price. The bidding then reconvenes one more time. At the end of the bidding the last offer is given to the sellers for confirmation. If they accept the offer, an offer to purchase is written and your deposit is put in a trust account toward your purchase price. If the house doesn’t sell, or you aren’t the high bidder, you get your deposit back immediately.
What is the price I will pay at close for the
The real estate is being sold with a buyer’s fee. The total cost of settling on the house at close is the sale price of the house plus the buyer’s fee.
When will I need to close on the property?
You must close within 30 days of the auction or you will lose your deposit.
any contingencies on the sale of the property?
No…The property sells without any contingencies including financing, sale of a home, or inspection.
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