What is a real estate auction?
A real estate auction is a way to buy and sell real estate, through an accelerated sale process, by means of an auctioneer.
Do real estate auctions depress values?
Not at all! Real estate auctions reveal the true market value of a property because auctions are conducted in an open forum where all bids are known, and participants are given immediate feedback on the property’s value. At auction, values settle at the level the market can bear, neither elevated nor deflated.
What do I need to do to bid at a real estate auction?
Always read the published Terms & Conditions for the Auction and speak with the project manager responsible for the auction to make sure you know what you need to bid. Carefully review the Property Information Package and complete any further due diligence that is important to you. If you have any concerns about the property, seek out professional advice. Ask any last minute questions prior to the start of the auction. Bring the required deposit to the auction and be prepared to sign the Purchase & Sale Agreement if you are the high bidder.
How do I register for the auction?
On auction day, prospective buyers register for a bidder number by showing a valid driver’s license and filling out some simple information. The registration period usually begins from 30 minutes to 2 hours before the scheduled auction time. There is no fee to register at the auction but you will be required to show your required deposit funds. You can also get all last minute questions answered by our helpful staff of bid assistants.
Do I get a good title?
Yes. Properties are transferred by deed prepared by seller (i.e. Special, Bargain and Sale, Quit Claim, U.S. Marshal’s, Trustee’s, etc.) with insurable title as determined by the title/closing company indicated on the contracts, which also prepares and issues a customary owner’s title insurance policy. Current year’s property taxes are pro-rated through day of closing as customary.
Can I use my own title company?
With some transactions, you can select your own title company and other transactions require the use of a specified closing company.
Can I use bank financing?
Yes. However, there are no contingencies (i.e. financing, appraisal or inspection) to these sales, so you should be pre-qualified by a lender as to the amount you can afford to spend for a property being sold for cash "As Is – Where Is" and make sure you can close within the require closing period.
What does it mean to buy the property in "as is" condition?
Buyers purchase the properties with no guarantees in regard to the condition of the properties. However, we do our best to provide as much information about each property that we can to assist you in your due diligence. Buyers should always rely entirely on their own information, judgment, and their own inspection of the properties prior to bidding.
Is there additional information on auction properties?
Property Information Packages (PIPs) are available on the auction page for the property and help the interested bidders begin their due diligence process. In some cases a Confidentiality & Non-Reliance Agreement must be signed prior to receiving the property information. The PIPs often include terms, deeds, general information, tax maps, assessor’s cards, Purchase & Sale Agreements, etc. Please remember properties are sold "As Is – Where Is" and should be fully inspected prior to bidding.
Why is the property being sold at auction instead of using the traditional listing method?
Sellers’ of properties have chosen the auction in order to sell their properties in an expedient and timely manner. Part of their reasoning includes the holding costs to maintain the properties (e.g., real estate taxes, insurance, association dues, the cost of money, etc.). With these sales, both the buyers and the sellers should be pleased. The Buyer(s) should be able to obtain these properties at the true market value on that particular day.
If I can’t be present at the auction can someone bid for me? Can I bid by telephone?
Yes. You may appoint a representative (by signing a Power of Attorney) to bid on your behalf. Often times AmeriBid offers live remote bidding by telephone through an auction representative or has live Internet bidding capabilities through our online partner, ProxiBid. Some auctions require you to be present to bid so please check the Terms & Conditions.
What is a Buyer’s Premium?
A Buyer’s Premium is a percentage that is added to the bid price to determine the total purchase price. For Example: Assume there is a 10% Buyer’s Premium. If you bid $750,000 on a property, then the total purchase price would be $825,000 ($750,000 plus $75,000 Buyer’s Premium).
How do I preview auction properties and perform a property inspection?
Most of our properties are open for inspection prior to the auction date and one hour prior to the scheduled auction time. Please feel free to bring your consultants to the preview. The dates and times will be listed on the property page on our website.
Can I use the services of a real estate broker to assist me?
Broker Participation is welcomed at most of our auctions. They must register at least 24 hour prior to the sale. Forms are available online with specific terms for that Property.
What is a "High Bidder’s Choice” auction?
Properties that are similar (such as office condominiums or residential lots) may be sold using the high bidder’s choice method. The high bidder or winning bidder may select from all of the lots in the group, and choose more than one. Of course, if the bidder chooses three lots, the bid is multiplied by three. In order to have the opportunity to choose your lot, you must compete and become the winning bidder.
What is a “Multi-Par” auction?
Properties are sometimes split and offered in individual tracts, any combination of tracts and as a total property. There will be open bidding on each individual tract, followed by tract combinations and the whole property as determined by the Auctioneer. Bids on the tracts and the total property may compete until all offers are extended and the auctioneer closes the auction.
What are the Terms and Conditions of the sale?
The Terms and Conditions govern the sale. They include information such as the required deposit amount, when the sale of the property will close, and other key facts. You should familiarize yourself with these prior to the auction. Summaries of the Terms and Conditions are available within the Property Information Package. You should note that at an auction sale, any announcements made by the auctioneer on the day of sale take precedence over previously published or verbally conveyed terms and conditions.
What about the title? Will I buy a property with unpaid back taxes or liens?
Most auction properties are sold with good, insurable title and no liens, judgments, mortgages, or back taxes. If the title cannot be cleared, the deposit is refunded to the Buyer; however, buyers must refer to the terms for each auction before bidding. If the property is being sold subject to outstanding taxes, then that disclosure will be made by the auctioneer prior to the start of the auction.
How is the property transferred to me?
Generally, a property is conveyed by Warranty Deed, free and clear of liens and encumbrances (except for foreclosures where the buyer would be responsible for all outstanding real estate taxes, municipal liens, etc.). See the Terms and Conditions of the particular auction for specifics. Closing costs are primarily governed by the state in which the property is located.