DO YOUR HOMEWORK:
The 30 days leading up to the auction is the time to find answers to your questions, attend open houses, and determine what type of budget you have. The actual auction is simply the time to offer the price you are willing to pay for your properties of interest.A real estate auction is the sale of real estate property in “As-Is” condition for the fair market value, using the competitive bidding process. Auction properties are sold “As-Is” meaning the properties are selling without warranties as to its condition and/or fitness of the properties for a particular use. You are solely responsible for examining and evaluating the properties for your own protection. Contracts are not contingent on buyer or lender inspections. You should make all desired inspections during the available viewing times.
Pozy Auctions will provide bidders with vital information on the property, which may include: a title search, surveys, zoning, environmental reports, financing, and disclosures. This information should give you the confidence to participate in an “As-Is” auction. Ultimately, it is your responsibility to do your own inspections and due diligence prior to bidding.
BE PREPARED TO BID QUICKLY:
The auction itself moves quickly. If you are a first-time attendee, you may be surprised to learn that it takes a short period of time, usually less than 10 minutes, to sell a home once the property is introduced and the bidding begins. Having your maximum bidding price in mind and preparing to bid accordingly takes the feeling of intimidation out of the process.
There will be a designated time prior to the auction when you can register and receive a buyer number. A valid driver’s license is required and a completed registration form. You will be expected to show proof of the mandatory Non-Refundable deposit should become the winning bidder. Generally, a cashier’s check or cash is sufficient to secure a bidder number, but in some instances, an additional deposit could be required. This is normally in the form of a personal check up to a percentage of the purchase price along with a letter from your bank guaranteeing your check to be good. Familiarizing yourself with the terms and conditions of the auction will ensure that registration on the day of the auction will be quick and trouble-free. In addition, registration is required should you choose to bid online. You must complete the registration form, provide information, and accept the Terms and Conditions of Sale. If you are interested in bidding on more than one property, required funds for EACH property must be submitted. Registrations will be processed and notification will be sent to you within 24 hours of the Earnest Money Deposit(s) being secured. You are bound to the same Terms and Conditions of Sale as those who physically attend and bid at the auction.
BEFORE THE AUCTION:
The auction begins promptly at the appointed time with pre-auction announcements summarizing the terms of sale, the methods of bidding, and any last minute changes or disclosures. These comments usually take only a few minutes, concluding with the Auctioneer answering any final questions. If questions are not taken by the Auctioneer, an information booth will be available to answer all questions. Please remember that anytime leading to the auction potential buyer’s can call to set up a private showing.
Closing on the property typically takes place within 30 days from the date of the auction. Closing is not contingent on financing, appraisals, or inspections. If there is Personal Property being sold at the Auction the Auctioneer will make announcements regarding the payment, Which customarily is the day of the sale once you are the highest bidder and possession of the Personal Property is taken after payment to auctioneer the day of the sale.
The RING MEN/WOMAN are auction staff members who are positioned among the attendees at the auction. They are there to assist the auctioneer, spot your bid and assist you with information to help you in your buying decision. You may place a bid by raising your bidder card. If you did not intend to bid, simply inform one of the Bidder Assistants or the Auctioneer and the mistake will be corrected. Any tie bids or other issues regarding who has the high bid are always resolved by the Auctioneer, who has complete and final authority.
From the first bid, things move quickly with bidders offering their bids up to the price they are willing to pay. It is not necessary, nor customary, for the Auctioneer to slowly announce, “Going once, going twice, etc.” When it is determined that the final bid has been made, the Auctioneer will identify and congratulate the high bidder. The high bidder simply executes the Real Estate Purchase Sale Agreement and makes the required 10% Non-Refundable Deposit. In a “Subject to Confirmation” auction, the Seller retains the right to accept or reject the high bid within a specified time after the auction.
If you are not able to attend the auction you may want to consider a pre-auction offer. If you choose this you need to make it your best offer in hopes there won’t be any counter offers the seller will accept over yours. Make your best offer and be ready to close. We have in the past had the Seller to take the “Pre-Bid” before the day of the sale. This is not often, however, if a buyer and seller have a “meeting of the minds” we can sell prior to the auction.