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Buying Real Estate at Auction 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 on the scheduled preview date or set a time for a private showing at 602-252-4842.
Q: What is meant by "Opening Bid?" A: Opening Bids are the starting price set by the owner of the property. From that initial bid you would increase your bid in increments as called out by the Auctioneer until you reach your highest bid price. Suggested Opening Bids are the minimum reserve figures.
Q: Why is this property being sold at auction? A: The owner has made a wise business decision to sell this property in a one-day sale rather than incur carrying costs & negotiating in a manner associated with conventional marketing. The Seller is motivated to sell and this is your opportunity to purchase this highly desirable property in the same manner.
Q: Will I be able to have the property inspected and have a ten day inspection period after my auction bid? A: You are purchasing the property "as is, with all faults". You must rely on your own information and pre-auction inspections. You are welcome to have the property inspected prior to your auction bidding. Any known defaults will be made known to you prior to bidding.
Q: Will financing be available at the auction site? A: Auction Systems will be happy to provide names of reputable lending institutions and mortgage brokerages, but on-site financing will not be available as all auction contracts are made without contingency. We recommend your financing is in place prior to bidding at auction.
Q: Is there a financing contingency? A: The property is not being sold with a financing contingency, so we recommend that you pre-qualify yourself with your lending institution before bidding at the auction sale. This will allow you to bid with confidence!
Q: Where will the auction be held? A: The auction will be held at the home itself, so you can personally inspect what you are buying.
Q: What is required in order to bid at the auction? A: You MUST register on auction day and receive a Bidder Card in order to bid. At registration you must present a Cashier's Check made payable to yourself in the amount of $7500. If you are the winning bidder, you will sign over the cashier’s check to the broker and it will serve as your down payment.
Q: How can I see the home prior to the auction? A: Call us and we will be happy to schedule a convenient time to give you a personal tour of the property. Call Justin Fish 602-405-1438
Q: Is my house 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 is forfeited.
Q: When and where will the closing be held? A: Closings generally occur from within 10-30 days of the auction. A contract for sale of the property will not be written subject to buyer obtaining financing; you need to have your financing in place prior to attending the auction. You may pick your own title/escrow firm or we will be happy to recommend one.
Q: How will the auction be conducted? A: The auction will be conducted by open auction cry bidding—but will go slowly enough to follow. As a bidder, all you need to do is hold up your bidder card and call out your bid, or tell your Bidder Assistant what amount you want to bid.
Q: Do I need to be represented by a Real Estate Broker in order to buy at the auction? A: No. Most buyers are not represented by a Broker.
Q: How do Brokers register their prospects? A: Brokers must register each prospect individually prior to the auction on an Auction Systems Auctioneers & Appraisers' Participating Broker Agreement Form. You will be paid a broker co-op of 2% commission only on the opening bid price.
Q: Whom do I talk with if I don't understand the auction contract? A: We recommend you consult with your attorney. It is very important for auction buyers to be informed regarding the auction process. Make sure all questions and concerns are answered before you bid at the auction.
John Estes, Broker.
More Information, including pictures and property information packages online at www.auctionANDappraise.com
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Auctioneers & Appraisers, Inc. 2008 |
