Buyer FAQ:
Can I inspect the property I’m interested in bidding on?
You can certainly inspect the property, but you must do so prior to the auction. Auction purchase agreements are not subject to inspections, so you need to inspect a property ahead of time and bid according to your assessment of the property.
How do I handle the Earnest Money Deposit?
At live auction, you need to bring a cashier’s check for the amount of the deposit for that auction. If you are bidding via our app, you need to make sure you have a check on deposit with our brokerage ahead of the auction or you will not be allowed to bid. All non-winning checks will be returned after the auction. Winning bidder deposits will be deposited in the brokerage trust account and credited to you at closing.
What if I’m uncertain about financing?
If you are uncertain you can obtain the funds necessary to buy your desired property, we suggest that you do not bid.
NOTE: If you are the successful high bidder at auction and sign to purchase the property, but do NOT perform, your deposit money is NON REFUNDABLE, and will be retained as liquidated damages if you do not close in the time allotted. So please do not bid if you are uncertain about your ability to obtain funding.
Are seller disclosures required?
On residential properties, the seller is required to complete the Residential Property Disclosure Form. In addition, if a residential property is built prior to 1978, a lead based paint disclosure is also required. On commercial properties, there are no disclosures required.
Are point of sale inspections required?
Some communities require that the seller have a “point-of-sale” inspection performed by the local building department prior to a property being transferred. If there are violations present, either the seller or the buyer can fix the violations. In some cases, local communities will require that the buyer place additional funds on deposit to pay for the cost of violation repair. Please inquire about the property of interest to see if this is pertinent to the transaction.
Will I obtain title insurance with my property?
All properties that are offered at live auction have had preliminary title inspections performed by licensed title companies and will be offered with title insurance.
What about real estate taxes?
Taxes will be pro-rated up to the date of closing as is “normal and customary”
Do you have any recommended lenders?
You can go anywhere you want for a mortgage. If you need help with finding lenders, click here for contact information for recommended lenders that have done a good job for previous clients.
What’s a buyer premium?
A buyer premium is an amount added to the final high bid to determine the contract purchase price. This amount helps to defray some of the expenses in performing the auction. The amount of the buyer premium may vary from one auction to another, but a 10% buyer premium is fairly standard. Example: If the high bid at auction is $100,000 for a property, add 10% ($10,000), and the purchase agreement will be written for $110,000.
I really want this property, can I buy ahead of the auction?
Know that we are agents of the seller, so it will depend on the seller’s instructions. In many instances, the seller will entertain pre-auction offers. However, part of the reason they elected the auction venue is so that they can eliminate the standard negotiation process. If you want the seller to accept your pre-auction offer, you must give us your “highest & best” offer ahead of time making it easy for a seller to say “yes”.
