How Do Real-Estate Auctions Work?

How Do Real-Estate Auctions Work?

How Do Real-Estate Auctions Work?

In many instances I had to buy a house without seeing the interior buy a house that was occupied. Real estate auctions look much like other types of auctions. These auctions have much different terms than the foreclosure sales and are much easier to buy from. There are no open houses or showings when you buy a house at the foreclosure sale. There are many other types of real estate auctions which present excellent opportunities to buy at your own price. The two main types of property auctions are foreclosure auctions and tax lien auctions. Auctions typically take place at the sale house or at the county courthouse, in the case of foreclosure auctions. This section is a generic overview of real estate auctions and to answer frequently asked questions (FAQ’s) from bidders or prospective buyers. The majority of house buyers are owner occupants who need to get a loan Most investors also need a loan to buy a house and auctions that require cash eliminate those buyers as well. If this is your first experience with real estate auctions, here is some info on how our auctions work. Your best foreclosure real estate auction opportunity may be here. On one deal we had the winning bid on a house at the foreclosure auction. In some cases a house may be occupied and the buyer cannot inspect the interior until they buy. Diamond S Auction & Real Estate Company sold our house and farm in Kirksville, Missouri. Bidding at our real estate auctions is easy! Contact a lawyer that specializes in real estate transactions for advice and assistance if you are considering buying a house at auction. Prior to my real estate career I had been involved with car auctions and commercial auctions. The auctioneer may operate his/her own auction house (and thus perform the duties of both auctioneer and auction house), and/or work for another house. Land & Property Auctions Here you can buy anything from an ancient castle to a brand new commercial premises. The first step in preparing to buy a house at a trustee auction is to go down to the auction and see what the atmosphere is really like. Make sure you know exactly how the foreclosure auctions work in your state before you bid. While many people go the traditional route of buying a house by home-shopping for months—using a real estate agent and negotiating with a seller—some people instead choose to buy their home at a real estate auction. Many think that real estate auctions are the best way to get a good deal on a home. The most frequently asked question is what is the minimum bid”. The range of auctions that take place is extremely wide and you can buy almost anything, from a house to an endowment policy and everything in-between. Bids are as is where is. There is an open house date where you can inspect the house yourself. Keep in mind that foreclosure auctions are just a small segment of the real estate auction business. Real estate auctions provide one way to bring a number of buyers together at one time to bid for your property. Then again, I do my due diligence before I buy so I know exactly what my title will look like and if it’s a mess, I don’t buy. There are many variations on live real estate auctions. There are two types of auctions that may occur, a public foreclosure auction or public auction through an auction company. For the sale of consumer second-hand goods of all kinds, particularly farm (equipment) and house clearances and online auctions. The two (2) questions we get asked the most every auction is: what is the reserve price and what will the property sell for. You do not need to have a real estate agent or realtor represent you in order to bid at The Industry Standard auctions. When I used to go to our foreclosure auctions I used to see many new investors check out the auctions for weeks to see how they worked. If no one bids on the home at the foreclosure sale, the house will go back to the bank. No inspections: Many auctions do not let buyers inspect a house after they bid on it , like most traditional sales would. Before you go after the property you want, it is a good idea to attend other real estate auctions to see how they work. Most live real estate auctions are advertised months in advance. Supreme Auctions do not require that you be represented, however, if you are working with a real estate professional, they will be required to attend any open house viewings with you as well as the auction day. But now sellers are shifting to real estate auctions to sell their homes. In early days of real estate auctions only the properties in bad conditions or subjected to foreclosure were auctioned. Increasingly, real estate agents are discovering the benefits of real estate auctions. By law, unless stated differently, all auctions are reserve auctions. We work alongside real estate professionals, not against them. The foreclosure auction is the actual real estate auction open to the public and held usually on the steps of the court house, or inside the court house. Contact auctioneers in your area who specialize in real estate auctions, or call auctioneers’ offices to find out if they hold house auctions. This article has been about foreclosure auctions that the banks use to complete the foreclosure process. It depends on how many properties you are planning to buy. Larger auctions are the type of real estate auction for which you want to feel the most prepared. I have included some of our previous successful real estate auctions for your review. But this view has changed as the number of real estate auctions are increasing day by day because sellers of residential as well as commercial properties are opting to auction their property directly or turning to real estate broker houses to get top price as per market rates from the auctions. Real Estate auctions allow all parties interested in the properties to compete for the winning bid. The auctioneer will not let that house go for any less during the auction. This is what draws home buyers and investors to real estate auctions in the first place. A: Open house dates are scheduled prior to the auction for buyers to inspect the property and ask questions. Government, Bankruptcy and General Auctions Government and General Auctions are amongst the most common auctions to be found today. Again, run away from these homes as far as you can unless you have a contractor ready for major repairs and you can buy the house outright. Foreclosure auctions force the owner to sell in order to pay past-due mortgages. In my case I have bought a foreclosed house once and it worked out very well for me. After the repairs the house was worth far more than the price I paid. I used to buy most of my fix and flips at the foreclosure sale in Colorado and I even bought a personal residence at the foreclosure sale. A foreclosure auction gives the general public a chance to buy homes that are being foreclosed on by the lien holder. Non refundable earnest money: When you buy a house you have to submit earnest money to the seller. Promises and innovation in real estate auctions for over 30 years. Express Real Estate Auctions does not do an independent title search. If the investor purchased your house through the auction. If the property is not sold during the public foreclosure auction, the property is then listed with a real estate agent. Why would anyone be interested in buying a property at auction? Foreclosure auctions are held by bank-hired trustees Tax lien auctions are conducted by local sheriffs. REMEMBER: The house is being sold as-is and the auction house makes no warranties on anything and doesn’t care if you can’t get the money in 30 days. It would never be worth it to use hard money to buy a house that you’re going to live in though, since the hard money loans are short-term and high interest. More often than not, you will be making a bid to buy the property as is”. Participants can ask questions and get free, confidential advice from foreclosure counselors. Do I always need the full amount in cash to buy a foreclosure? Pay attention when driving for signs in front properties, especially if a house you want to buy is sitting empty. Lenders sometimes use real estate brokers to oversee the auctioning of the home, but not all real estate agents specialize in property auctions. There are many types of auctions, and some banks use another auction to sell the house once they have completed the foreclosure. On personal property and not real estate. A real estate auction is an innovative and effective method of selling real estate. A: A real estate auction is an innovative and effective method of selling real estate. Real estate auctions offer many advantages to motivated sellers who are committed to selling their property. Most states require that real estate auctioneers hold a real estate license. The long waiting period to own the house usually doesn’t work because the Buyer’s situation changes. In a public auction, you buy the property site unseen without inspection in most cases. Once you buy it, it’s yours to deal with – warts and all. If you are pre-approved for a loan to buy the property, take that paperwork to the auction. This type of deposit is most often used in auctions involving high-value goods (such as real estate ). The absolute best route to take is to work with an experienced real estate agent that specializes in foreclosure home sales. The appraised value/minimum bid prices for land listed are in the auctions section below. Most foreclosure auctions require payment in cash (or a cashier’s check) within a relatively short time after the auction. Attend several local house auctions in the area where you want to buy, whether you are interested in the particular property or not, so you can watch and get a feel for the auction process. When buying a house that you can’t see inside of, you have to consider how much the repairs could be. I almost always bought the houses from the auction for flips so I knew how much my repair budget could be to make money I would always assume a house would need new flooring, paint, appliances, fixtures and at least $5,000 in other repairs depending on the age of the home Sometimes we got lucky and the house needed less work and sometimes it needed more. There are many different types of real estate auctions that come with varying amounts of risk. A real estate auction works in much the same way as any other type of auction. Auctions are a different animal all together and the ‘œsellers’ do not want any possibility of a house they just sold does not close escrow due to any last minute lender issues. Qualified buyers will be gathered on a set date and time and are prepared to buy your property. Auctions are another way you can access and purchase an REO property. If you are house hunting, you may want to consider buying a foreclosed home, also called a real estate owned (REO) property. Many people initially think of the old, limited perception of auctions as what happens on the court house steps. In the Questions & Answers ” section we’ve collected some of the most common questions sellers have asked us over the years and provided the answers for you. If you call the county clerk, make sure you clarify that you are looking for the location of mortgage foreclosure auctions, not tax foreclosure auctions. Most auctions for foreclosure are public and involve bidders who appear in person to purchase the home. Auctions offer a first chance to snap up certain properties, so in theory, some of the best properties get purchased at auctions. Hurley Auctions welcomes partnerships with real estate professionals. As one of the preferred auction providers for real estate firms, we work in cooperation with leading real estate professionals. At Property Auction, we’ve assisted in thousands of real estate auctions – we know what works, and we can help you. When I was in graduate school, I used to buy random pieces of computer and scientific equipment from my schools’ surplus auctions. Lender foreclosure auctions require court approval before the property transfers to the buyer. If the house has been abandoned then there is a good chance that the person might have stripped everything of value out of the inside of the house but still left the outside in relatively good condition. Foreclosure auctions differ substantially from a typical residential sale. Craig Donofrio lives in New Orleans, where he writes about real estate and finance news. Cash purchases: Many auctions require the buyer to pay cash for houses they bid on. Foreclosure auctions may require the buyer to have cash the same day they bid or before they bid on a property. Why should you consider putting your property up for auction? Promoted Real Estate Auction. Below are answers to common questions about buying real estate from the U.S. Department of the Treasury. They never were but real estate professionals could not deny the global success of selling real estate at auction. Successful auctions are the result of dedication through hard work and a commitment to quality. And unlike some real estate auctions, Perlmutter’s home isn’t in foreclosure or distress. Bankruptcy auctions are similar to foreclosure sales in that a distressed situation exists. However if you are looking for a property to renovate, an auction is an excellent way to buy a property that may need a ‘little TLC’. I don’t often take the time to go to auctions because I just haven’t had much luck in the past. Supreme Auctions has been successfully marketing luxury real estate for sale by auction for over 30 years in 70 countries around the world. Many times it has been found that real estate auctions remain incomplete because the buyer or successful bidder is turned down for mortgages. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender. What can be done to stop or postpone a forclosure auction? To find out how a customized Father Time® real estate auction can help you efficiently and effectively sell your real estate talk with us about your Real Estate for expert guidance. Frequently it is determined by the type of property that is being sold and the seller’s particular needs. In many states, all the auctions in each county are at the same location. Most auctions are at a public place in the same county where the property is located. This Premium is usually 5%-10% of the purchase price depending on the auction house. Auctioneers may or may not (depending on the laws of the jurisdiction and/or the policies of the auction house) bid for their own account, or if they do must disclose this to bidders at the auction; similar rules may apply for employees of the auctioneer or the auction house. Police Auctions 47 Police auctions are generally held at general auctions although some forces use online sites including eBay to dispose of lost and found and seized goods. A: Buying real estate at an auction is a very simple process. Very often real estate agents work directly with banks to handle REO properties. Many people, however, don’t have enough money to pay cash for a house. There are 3 main stages of foreclosure: foreclosure auction, real estate owned (REO), and pre-foreclosure. You should consult an attorney and/or a foreclosure specialist for individual advice regarding your own situation. Always review the terms of the current auction in the Auctions section. The lender does not have to wait this period before auctioning off the house. If the sale is a foreclosure auction run by the lender, the property is often still in foreclosure. A house that has gone through a foreclosure auction and failed to attract any acceptable bids may remain the property of the owner of the mortgage. This is not a fun situation to be in, when trying to talk to someone about buying their house they are losing to foreclosure. However, investors or even owner occupied bidders can buy houses at the foreclosure sale if they bid more than the banks bid (assuming the bank isn’t bidding as well, which is possibly). Some online auctions are less risky than foreclosure auctions, which can provide opportunities for less experienced buyers. Clear title: Many foreclosure auctions do not guarantee clear title. I am buying a house now that is occupied and I have never seen the interior. Perlmutter is part of an increasing number of luxury homeowners choosing to forgo the traditional Multiple Listing Service, months of walk-throughs and back-and-forth deals with real estate agents, instead letting an auction house do all the work in selling their homes. An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. A buyer’s premium is sometimes used on selling of real estate. And most auctions require you to close quickly in 30-45 days. We have had great success selling all types of real estate including Farms, Commercial, Residential, & Land. This is essential when a real estate takes lot of time to sell and the owner is represented by a real estate agent or broker. Knowing Your Property – Many property auctions are held on-site to allow buyers to look at the property they will be bidding on. However, some auctions are held online, with no chance for the buyer to inspect the property. If you feel that Wells Fargo did not provide you notice of foreclosure, you may seek legal advice through a real estate attorney to determine your rights. Once this is cleared, he opens the bid for each house on the list. Just talk with the auctioneer about our upcoming schedule of auctions. Do not auction your house if you expect or must get full price. Buyers like absolute auctions because the seller is obligated to accept their bid. These auctions typically have the highest number of bidders because they know if they are the high bidder they will win the property. Down payment amounts and methods of purchasing often depend on the property and the auction house. U.S. Treasury auctions accept only a cashiers check bid deposit. However, you are not required to have a broker in order to bid at the auction. In the sale of all types of real property including residential and commercial real estate , farms, vacant lots and land. On-Site Auctions Sometimes when the stock or assets of a company are simply too vast or too bulky for an auction house to transport to their own premises and store, they will hold an auction within the confines of the bankrupt company itself. Titles If you fancy being the Lord of the Manor then you can buy a hereditary title at auction. Motor Vehicle and Car Auctions Here you can buy anything from an accident damaged car to a brand new top-of-the-range model; from a run-of-the-mill family saloon to a rare collector’s item. Indeed, some of the more interesting recent developments have been the use of the Internet both as a means of disseminating information about various auctions and as a vehicle for hosting auctions themselves. A: Some auctions have financing available, while others do not. The auctioneer will say the number already bid and the next number asked to be bid. The good news is that there are auctioning agents that offer reliability and a fall back plan for you. Most jurisdictions are required to publish notices in the local paper of pending foreclosure auctions. Specialized agents will have a network of contacts from traditional lending institutions, mortgage banks, other real estate agents, and residents living in areas where you hope to buy. This is not just because they will have better access to available listings, but also because foreclosure transactions are very different from conventional real estate sales. Keep in mind those pictures might be quite different from the current condition of the inside of the house. If you have access to the Multiple Listing Services through a broker or real estate agent, you may be able to pull up pictures from an old listing when the house was for sale. You must either have the cash or be willing to take on a risky, high-interest hard money” loan to buy the property. And you’re tempted by foreclosure auctions (where banks sell foreclosed homes to quickly get rid of them). Foreclosure auctions typically require the buyer to pay immediately, often in cash, or set a limited number of hours after the auction for payment. Some auctions, however, offer the house as an absolute auction, without any minimum sales price. What’s the best way to learn about auctions before actually buying? People who buy these properties hope that the risk will be offset by the kind of discount prices often available on these homes. Visit or phone the town hall that governs the property you want to buy. In the past, acquiring properties through auctions was generally limited to real estate investors and professionals, but that’s no longer the case. If the winning bidder does not show up, the second highest bidder is notified and given a chance to buy the property at their highest bid. Before the lien holder can take possession of the house through a foreclosure, they have to offer it up for auction. Buying homes and real estate at live or internet auctions can expose you to risks not present in a typical purchase, and may best suit experienced cash buyers- see below to find out why. I started attending residential auctions in 2006. The traditional channels of searching real estate listings and working with real estate agents aren’t the only way to acquire a property. Foreclosures are a great way to save money on a home, whether purchasing your very first home or you are looking to buy an investment property, foreclosures are an excellent option. Foreclosure starts have fallen to the levels last seen before the mortgage meltdown, but while the worst of the crisis is over, opportunities to buy homes at with big discounts remain in every market. Real estate professionals may use auction terms unfamiliar to many buyers and sellers, but these terms may be very important to the success of your auction experience since they describe how the auction will work. There have been cases in which the sellers have accepted online bids or offer, and the auctions were called off. Alternatively, you could attend a few auctions of individual properties and see how the process works for each one. When you go to a foreclosure auction in which dozens of real estate properties from the region will be sold, the pace could be very fast. A real estate auction is also called a foreclosure auction, in which the sellers will try to secure the biggest financial return on a distressed property. Indisputably, auctions are fast and short on aggravation. One of my best real estate brokers accompanied me. It was his first auction. There are certainly deals to be had but auctions can be very dangerous for buyers. We start the auctions promptly and usually they are very brief. Auctions are successful in considerably bringing down the amount of time a property is on the market for sale. Many real estate owners prefer to go for a direct auction instead of going to a auction houses to avoid payment of sales commission to real estate brokers which is about 8-10 percent of the property’s value. The buyer’s premium is a service charge that is added to the high bid for our public auctions. For our public auctions the property is generally only available for viewing 30-90 minutes prior to the auction. No Other Sales Method Can Ever Duplicate The Excitement Associated With Auctions. Auction Is The Best Solution To Sell Real Estate Versus The Conventional Method. You can purchase the property from the bank through a real estate agent once the property has been listed. For every property in every auction, Father Time® Real Estate Auctions prepares a comprehensive Bidder’s Information Packet to provide detailed information and earn a buyer’s confidence. Highly competitive, back-and-forth bidding does nothing but drive the price up. This defeats the purpose of an auction, which is to buy a home for less than market value. A real estate auction conducted by a private company works in much the same way. Tom Hall Auctions represent sellers with one common goal, to sell their real estate in the shortest time frame with the least inconvenience and for the best possible price. After 30 days, your house can go to auction and the buyer has 30 days to arrange financing. I had both bought and sold various items and products at auctions. Some states have redemption periods for the owner, in which case the owner can buy the property back from you if they pay the full amount paid at the auction, plus applicable fees. It’s also not uncommon for auctions to be postponed without a new date being published. Bidders can avoid this problem by working with an auction house to ensure that the property has clear titles. The majority of sales are onsite auctions held at the property location. A: Buyers may have home inspectors examine the property during open house dates at their own expense. This is a fillable form used for only live auctions held at the property site. A: All of our auctions are conducted utilizing the Open-Cry bid system. The seller has the option to accept any bid at the auction, whether it meets the reserve or not; however, a reserve will keep some bidders from attending and performing the necessary due diligence to buy the property. We will offer to sell equipment if the real estate is being sold as well. As an award-winning auction marketing firm and leader in the real estate industry, we welcome the opportunity to work with you. Has facilitated hundreds of auctions from sellers inquiring about the auction process. Buying a house online, like buying anything online is very tricky business. I’ve attended some in-person foreclosure auctions, to watch how the game is played, as well as watching online auctions on and Bid4Assets. We tracked the online auctions to see how they proceeded – just as I tracked the results of my university’s surplus auctions during my grad school years. I know this seems like I’m repeating #1, but is one of many ways that people find out about foreclosure auctions at the courthouse steps. Foreclosure – The process by which a lender can repossess a homeowner property in order to repay an outstanding debt. Commonly the lender’s agent will also clear and clean the house for sale. NEVER, EVER buy a lien in second position, or any lien that isn’t first position for that matter, unless you know exactly what you’re doing. But if you can pull off buying a house at auction, you can get into a home for as much as 50 percent off list price. State or county tax auctions offer government-confiscated properties. I can see where a lot of care would need to betaken before buying an auctioned house. Is it better to go to absolute auctions or sales that require minimum bids? In some cases, you may be able to see a virtual tour or even attend an open house. Do a full title search done on a property if you spot a house coming to auction that you think you would like to bid on. Check with your REALTOR® and local auction houses to find out when property auctions are planned. Most people are actually friendly and will at least tell you if they are renting or if they own the house. All of these factors make it tough for most buyers to purchase homes from auctions. Short notice: Some state foreclosure sales give buyers very little time to know what houses will be bid on and how much the starting bids will be. Other online auctions will give the buyers weeks notice before an auction. If the house is occupied, you can’t just kick out the occupant. It’s easy to attend a real estate auction and feel you are out of your league. Powell Auction Specializes In Estates, Real Estate, Personal Property And The Development Of Farm Land, Lake Front And Commercial Property. When land is forfeited, no taxes are collected. Please note, a majority of our auctions do not utilize a buyer’s premium. If you are serious about selling, you should contact us. Auctions are our specialty and only business. The tried and true method is on the lawn.” Bidders stand outside of the house while the auctioneer makes the sale. Hiring an auctioneer who routinely handles sales of houses similar to yours will make it more likely that he’ll attract a crowd of buyers who are hoping to buy a property that is similar to yours. Luckily, most auctions include a fee for a buyer’s agent to represent you. For this reason, as-is auctions are best-suited for cash buyers. Has proven that the auction method can work for any type of property. The owner of the property has passed away and the property is being sold for the estate of that person. On auction day, Supreme Auctions suggest that you make arrangements to arrive at the property at least 45 minutes prior to the scheduled Auction time. We further understand that for us to continue successfully marketing high-end real estate by luxury auction, Supreme Auctions must continue to market properties of sellers who are truly committed to sell. It is important to have any questions answered prior to the auction as once the property is sold it is final. From the initial consultation, through the open house and auction day, and throughout the closing process, Doerr Auction & Realty, Inc. Buyers enjoy auctions because they compete in an open and fair environment. Auctions appeal to people – it brings them in to look at all the listings you hold, not just the auction listing. The two common ways of buying a foreclosed home are through a real estate agent or through a public auction. After two years of hearing what a buyer’s market it is but being afraid to buy with prices still falling, buyers are getting up the gumption to jump into the market with both feet. A good auction company will have a following, a number of buyers who will attend their auctions on a regular basis. If you can’t secure a cash loan, you may consider trying to buy a pre-foreclosure or bank-owned property, both cases where you can usually obtain a regular mortgage loan secured by the property being purchased. You can get started by reading state foreclosure laws You could also contact a local real estate agent or attorney in your area. First, we do two types of auctions, absolute (without reserve) and reserve (auctions with a minimum selling price). Auctions can be a riskier way to purchase a property than buying a property through a real estate agent , so it’s important to be extremely well-educated about the process and about the properties you are interested in bidding on. Also, just because a home is for sale at auction doesn’t mean that you’ll be able to get it at a good price (or that the home is a good deal at any price – it could be a money pit!). The consignor maintains title until such time that an item is purchased by a bidder and the bidder pays the auction house. Antiques and Collectibles Auctions Auctions of antiques and collectibles are fascinating places and hold the opportunity for viewing a huge array of items. Make sure all your questions and concerns are answered before you attend an auction. Many people are afraid of the old, outdated perception of auctions. We auction all types of real estate from condominiums, single-family homes, land (agricultural and timber), commercial and investment properties and high-end trophy properties. Offering a property in this manner increases the buyer base, creates a positive and exciting auction event, and gives all bidders an equal chance to buy exactly what they want. To offer the asked for bid simply raise your hand or speak out to the auctioneer or one of the bid assistants. They understood that they were selling more than a house and farm, they were selling our home! A. Bidders are qualified with a substantial deposit in order to bid. The buyer is agreeing to buy the property as it is, which could be as simple as a broken garage door to a major environmental issue. In a real estate auction commissions are typically paid by the BUYER, not the seller. Short Sale – A real estate transaction that happens before foreclosure occurs, usually with the approval of the lender to liquidate the property for less than the outstanding loan balance. This is where all real estate transactions for a property in that county are recorded. Auctions are typically conducted by a neutral third party such as a trustee or sheriff. Auction companies occasionally require all potential bidders to deposit cash to participate in property auctions of high-priced properties. Most auctions don’t last long; if you’re five or 10 minutes late, you may miss the whole thing. Some larger auctions will have representatives from several large mortgage lenders in attendance. Many auctions require bidders to bring along a certified check for $5,000, made payable to the auction company. Observe the buyers – Sometimes auctions are as much about theatrics as they are about business transactions. If the house is coming to auction, there should be a sign out front announcing the date of the auction and listing a phone number where you can call for more information. Auction winners must go through a property closing just like a traditional real estate transaction. Auctions can be held at local courthouses, conference centers or at the auction company’s office. We looked through the windows and the house appeared to be completely vacant. Some states have owner redemption periods, which means the owner of the home has a period of time to pay off whoever bid at the sale and get the house back. Other states have much different laws and each states handles their auctions differently. That usually leaves the experienced investors to battle over houses at auctions. Arrive at the auction early, to give yourself time to inspect the property, register and ask questions. PMI brings innovation to the time proven real estate auction methods. Selling real estate has traditionally been a time consuming process for both the seller and buyer. Hurley Auctions has been providing clients with an unsurpassed level of service for over 20 years. Selling a property through a real estate auction helps determine the true value of your property and brings serious buyers to your listing. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. You actually do not need a real estate agent to bid on – though in many instances it is allowed and there is a commission available. We are anxious to share with you our real estate auction marketing strategies and how we can sell your property at auction. If your bid is not successful or if the bidding war goes over the listed price, you know in the back of your mind you can always attend other auctions and purchase a similar property. Therefore, before you plan a real estate property bid, you should contact the auctioneer to determine if you can inspect the property prior to auction day. Overall, the real estate auction process will be easier to understand once you have seen it in action. Some are being sold because the owner has died and their estate has authorized the sale. And it probably isn’t wise to select an auction company that never does anything but bank-owned foreclosures if you and your real estate are solvent. Call me (208)866-3481 for more information and professional help on real estate auctions in Ada and Canyon counties including Boise, Meridian, Eagle Star, Kuna, Nampa, Caldwell, Middleton and smaller outlying cities. Auctions encourage emotional heat-of-the-moment competition and reduce your bargaining power. Your property won’t get lost in the mix of a listing with other real estate. Pre-sales of auctions have actually become popular, meaning once the auction is advertised, many offers come in for the property before the auction date in the hopes of bypassing any competitive bidding. We recommend that you arrive at the auction early, in order to have enough time to register with the auctioneer and to tour the site. There are many traps and pitfalls that the buyer needs to navigate in order to win an auction. During the auction, our bid assistants will be available to relay your bid to the auctioneer and answer any questions you may have during the auction. Decide whether you wish to be represented by a real estate broker. Therefore, Supreme Auctions are committed to providing you with a clear and concise understanding of the property being sold, the terms of the auction, and the auction process as it relates to that specific auction. No other auction company in New England can match PMI’s experience in auctioning real estate. He should consult experienced and professional auction consultant who have specialized in real estate auctioning. Since auction is the best way to get true market value for the real estate, the magic of an exciting real estate auction works for the marketing of these properties for sale. Real estate auction is an exciting event both for the auctioneer and the bidding parties therefore they are always well attended. In addition by setting a minimum price, he will no longer have to bear the risk of buying back the property if it does not reach that price and will also save the cost of paying the required sales commission to the auction house. Performing the Auction – As a seller, once you have put your property up for auction (especially if you are working through a property auction service), most of your work is done. This may require that a real estate auction service be contacted or that parties be hired to help you conduct your property auction. They are realizing that auctions promote activity in an industry that thrives on activity. A well-conducted real estate auction by its very nature minimizes such failures. The foreclosure process is not very difficult to understand. Double J Auction and Realty also offers online auctions for the convenience of the seller, available depending on the type of marketing plan chosen by the seller. You can try it’s an online auction site for national real estate including Arizona. If it is, the lender may or may not stop the foreclosure. Many auction companies sell properties from various banks and investors, holding auctions across the country either in-person or online. This is also known as a foreclosure property or a bank-owned property. Auctions create urgency for buyers who wish to purchase the property, and an absolute buying deadline that did not exist prior to offering the property up at auction. Auctions are unique events that focus market attention on the property, at the expense of competing properties. It’s best to avoid a bidding war during a real estate auction, especially if you’re new to the process. For the most part, the real estate auction process works the same, regardless of where it’s held. If your property is actively listed with a real estate agent, they are welcome to contact us as well. Check our Upcoming Auctions schedule or give us a call at 816-781-1134 If you come to one of our auctions, be sure to introduce yourself! Our auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price. Residential, Commercial, Land are the primary categories. We will extensively research your property and help you determine the best way to market your real estate. Our team of professionals is dedicated to making your real estate auction a success. Deposits: When bidding on a property, most auctions will require 5 -10% of expected value of property upfront in cashiers check. I have seen many auctions fail and they were almost always resulting from inexperience and no long history of results. After a few months of attending auctions, I wanted to learn more so I started reading various books on auctions. You may encounter investors who attend many auctions every month and who don’t necessarily appreciate new competition. If you are a potential buyer planning to attend a Real Estate Auction and would like representation that understands the auction process, please give us a call. Dan Hiller is a licensed Real Estate Broker and Kevin Hiller is a licensed Real Estate Agent. Some auctions allow Internet bids; others require sealed bids before the auction begins, with the winner being the highest bidder. Because auctions are usually cash transactions, the county may require that any bidder verify her identity and ability to pay for the property before the auction begins. If you can’t afford the risk of buying a property in poor condition, stick with auctions that allow you to inspect the property before bidding. If a property winds up at auction, it means the owner was having financial trouble, so the house may have deferred maintenance problems. In the case of a foreclosure auction, the lender is not allowed to profit from the auction. A real estate contract will be executed at this time by the high bidder and back-up bidder. You would need to work with your lender to prequalify for a loan prior to attending the auction. Auctions may set a reservation price which is the least/maximum acceptable price for which a good may be sold/bought. Auctions may differ as to the price at which the item is sold, whether the first (best) price, the second price, the first unique price or some other. Insurance Policies Auctions are held for second-hand endowment policies. Internet Auctions With a potential audience of millions the Internet is the most exciting part of the auction world at the moment. A: All of our auctions are Open-Cry type auctions, meaning that the auctioneer asks for each bid, and the bidders simply signal the auctioneer that they accept. A. We hold all auctions on site or in a central meeting facility, depending on the needs of the seller and the number of properties being offered at once. Our auctions are positive, enthusiastic events designed to generate competitive bidding and to provide immediate results for both seller and buyer. We will work with your broker throughout the entire process. We certainly hope to return to your auctions on our return visits! Give us an opportunity to talk to your Clients and explain the benefits of a personal property or Estate auction. INTERNET BIDDERS MUST REGISTER THE SAME AS PUBLIC BIDDERS: has offered internet bidding with 100% of our auctions during our entire history. BIDDING IS OPEN TO ALL MEMBERS OF THE PUBLIC: All auctions are open to bidding from members of the general public meaning that anyone who is properly registered with the required deposit may bid on the property. If you are interested in auctioning your property start by filling out the begining of real estate auction sellers form below. Their local Realtor left the keys under a rock at the house (a long story; they seemed disorganized). There were people who conducted tens of thousands of dollars worth of transactions during those monthly auctions. Real Estate Owned – Representing a foreclosed property that did no sell at auction and has returned to the possession of the lender. Auction – Occuring if a property goes into foreclosure. If the property fails to sell at auction it will move into the full possession of the lender and become real estate owned. Auctions are usually cash only, which tends to limit the field of bidders to investors and other lenders. In this case the home moves into foreclosure at which point it will be sold at auction. The case is usually that the owner has stopped being able to make timely payments and likely negotiated with the lender to sell the house below market value, also commonly called a short sale. Also, do your due diligence on several homes that you’d want to buy and not just one, because it’s likely that the one you have your eye on may either be delayed (and delayed, and delayed) or sell for a higher price than what you’re willing to pay. Order a preliminary title report from a title company. Each county’s auctions are run a little bit differently, and you’ll want to know the ins and outs of the auction in your particular area long before bidding. Perhaps you even know somebody who bought a home for cheap at a foreclosure auction. The proceeds from these auctions pay any taxes owed, with the remaining cash returned to the homeowner. As with any major purchase, there is quite a bit of homework to do before attending the real estate auction. Once the bank has possession of the property it is now called a REO (Real Estate Owned) property. Typically, the foreclosure real estate auction process won’t allow you to view the property’s interior before making a bid unless the bank grants you access, if the property has been abandoned by the previous owners. Before you head to the real estate auction, you will need to understand the different kinds of foreclosures. This content is not, nor is it intended to be, legal advice and should not be relied on in lieu of consultation with an attorney. If you’re entertaining the thought of buying a foreclosure, it’s smart to attend a few auctions as an observer. Free mortgage foreclosure information workshops are held for homeowners who are worried about making upcoming mortgage payments, are already behind on payments, or just want to learn more about foreclosure; and for renters whose landlords may be facing foreclosure. After the classification process, an appraised value is set for the land. The county is then responsible for management of the Tax-Forfeited Land Program. Is the nation’s leading online real estate marketplace. It depends on which foreclosure and which existing home. The division of the lending institution that sells foreclosure properties and the division that does real estate financing are two separate organizations. Speak with local real estate brokers to better gauge the market. Because this remedy can be harsh, courts almost never allow it. Instead, they usually grant an order for possession and an order for sale, which mitigates some of the harshness of the repossession by allowing the sale. Nevertheless, in an illiquid real estate market or following a significant drop in real estate prices, it may happen that the property being foreclosed is sold for less than the remaining balance on the primary mortgage loan, and there may be no insurance to cover the loss. HUBZU, Homesearch, and many more sites have auctions for REO properties that the bank already owns. In the day (Tuesday) before the sale we would get an and E (ownership and encumbrance report) from the title company, check out the house as much as we could and then decide if it was worth bidding on the home. Many buyers are scared of auctions because of the possibility of losing earnest money, no inspections and other issues. The popularity of auction sales of real estates is increasing day by day despite the dominance of the traditional process of real estate selling. Summary: This article explains how a real estate auction works, and how you can use them to your advantage. In today’s unpredictable economy, selling real estate can be a frustrating and sometimes intimidating process. At a minimum bid auction, the auctioneer only accepts bids that are at or above the published minimum price for that piece of real estate. After all, auctions appeal to potential sellers, bankers, attorneys, trust officers and accountants. In the end, a real estate auction is a potential way to get a distressed property from a lender for a bargain price, perhaps not much more than 15 percent below the fair market value. Most importantly, you shouldn’t rely only on what you learn about the property from online or printed information from the lender or lender’s real estate agent. Absolute auctions heighten the drama – there’s no turning back – and bring in better prices, says Rose and Bratton, who sold his Hot Springs home at auction. There are usually very limited opportunities for potential buyers to view the property – often just a couple of hours before the sale, so the seller isn’t inconvenienced by potential buyers trooping through the house for weeks or months. Sellers love auctions because they are fast, efficient and effective,” says Joe Wilson, owner of Wilson Auctioneers Inc. In the last few slow-market years, the real estate auction business has been growing like crazy. Perlmutter, who followed previous Grand Estates auctions before choosing the company to sell his house, said he expects similar success Tuesday. Live auctions for local homes and real estate, storage liquidations, personal property, business equipment, estates, benefits and fund-raisers. We will work with you to create the best advertising package that meets your budget. Myth #9: Auctions are attended by mostly experienced investors, leaving little chance for everyday buyers to get the winning bid. The estate may be handled by an attorney or by a family member acting as the personal representative. Please feel free to ask any questions regarding these announcements and the terms of sale. They post signs and they network with real estate brokers to get the word out. Our staff will be on hand to answer any questions about the closing process and ensure a smooth transaction. Our professional on site auction showing staff will give you a guided tour of the property and answer any questions you may have about the auction process and the property itself. Contact us today to setup a consultation , where you’ll speak with one of our auctioneers to find the best options for your real estate. The auction method is cited in most of these statutes as a requirement to foreclose on a mortgage often referred to as a Foreclosure Auction or Mortgagee’s Sale at Auction. Paul McInnis and his staff bring years of real estate auction experience, as well as professional auction marketing techniques, to the sale of real property. To date, PMI has sold private homes, single house lots, waterfront mansions, condominiums, shopping centers, subdivisions, farms, and rural land, all by auction. Many times, it is wise for a real estate owner to auction a property not in use to cut down maintenance expenses. Real estate auctioneers are at a liberty to set a minimum price which is more than its market value that he will receive in any case. The properties available for auction often include homes, condominiums, commercial buildings, operating businesses, and undeveloped land. This will probably again require legal and real estate counsel, and direct correspondence with the winning bidder on your property. Setting up the Auction – the first step in auctioning off a property is to consult legal and real estate counsels to make sure that the proper procedures will be followed in the auction. However, not all real estate is well suited for auction – if it does not appeal to a broad market, it may not be profitable to try to auction your property. Government auctions often include perfectly good property that has been seized or foreclosed upon, and can be excellent markets for the thrifty buyer who does his research on the property and knows what he is purchasing. A single auction for one development might bring in dozens or even hundreds of prospective buyers who are now in the real estate agent’s market area. If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This Also Allows Us One More Opportunity To Address Any Questions And To Emphasize The Selling Features Of Your Property To Prospective Bidders. This would b in order to drive by and take a look at the exterior condition and neighborhood. Whereas, it takes an average of 30 days for an REO or traditional real estate sale to close. On top of this, REO (real estate owned) or bank-owned homes are available for showings unlike those homes in the public auction. Despite these challenges, auctions can be a good resource, as long as the excitement of bidding does not lead you to buying a foreclosed home at an inflated price or more than you can comfortably afford. After the property has been listed with a real estate agent, marketed for a set period of time and has not sold, the bank will often transition the property to an auction company. A public foreclosure auction can occur when ownership of the property officially transitions to the bank. As with a typical real estate transaction, out-of-pocket expenses can occur before and after an offer to purchase a property has been submitted. Let the Insured, Licensed and Credentialed Experts at Father Time Auctions be your complete liquidation solution. For many types of properties, selling at auction is a powerful, highly effective alternative to traditional real estate brokerage. After the gavel drops, the winning party makes an initial deposit and executes the real estate contract. Our auctions are designed to be easily understood by bidders, and create a comfortable environment for bidders to make their purchasing decisions. The lender might add on other expenses incurred during the foreclosure process. This gives you an opportunity to ask questions about a particular property, or to conduct a walk-through inspection. A: While we hold most auctions on-site, there are several other options available including, an off site gallery style” event, a sealed bid format, and an online-only auction. For more information on the changing view of Real Estate at Auction, see Media on Auctions”. A: A key advantage of auctioning real estate is the benefit of a customized advertising and marketing program. In order to be affective the opening bid must be low enough to act as an inducement to buyers. It is an art to see a successful auctioneer work the audience of buyers. This turned out to be one of the most valuable real estate experiences I had ever learned. If eviction is necessary, you can contact a local real estate attorney or the county sheriff for the proper procedure. Clarify with the auctioneer and a real estate attorney what further steps need to be made before you take ownership and possession of the property. A real estate attorney or title company can check for liens, or you can check directly with county records. If you already are familiar with real estate auctions, please click on the Broker Participation form below. If you would like to hear more about the advantages a Real Estate Auction has to offer, call for a no cost no obligation consultation. Our purchase agreements and other real estate forms are provided by the Minnesota Association of Realtors. It’s important to check the county’s foreclosure auction by-laws to know which auction format the county uses. This isn’t normally used in foreclosure auctions, because the seller has no choice but to sell. But for savvy, intelligent and motivated individuals, property auctions are worth exploring as a way to pick up a home or an investment property on the cheap. The bank doesn’t have to accept the winning bid in subject to lender confirmation foreclosure auction. Auctions take place at local government courthouses and other locations chosen by auction companies, such as hotel conference rooms. If you are talking about private auctions like REDC, you may be able to get financing but you must bring a willingness to pay a Buyer’s Premium on top of closing costs. You need cash and you need to investigate each property, you also have to be willing to take a risk that the property doesn’t have any liens on it. The investors who buy at the courthouse or wherever they’re scheduled at (public libraries etc) have massive amounts of cash & are willing to take the risk that there could be some outstanding lien, including IRS & otherwise. Commission – a fee paid by a consignor/seller to the auction house; it is typically calculated as a percentage of the winning bid and deducted from the gross proceeds due to the consignor/seller. Auctioneers are frequently regulated by governmental entities, and in those jurisdictions must meet certain criteria to be licensed (be of a certain age, have no disqualifying criminal record, attend auction school , pass an examination, and pay a licensing fee). In Sweden and many other countries there are no legal restrictions, but it will severely hurt the reputation of an auction house that knowingly permits any other bids except genuine bids. This is the practice, especially by high-end art auctioneers, of raising false bids at crucial times in the bidding in order to create the appearance of greater demand or to extend bidding momentum for a work on offer. They also provided a model 57 for the case in which the buyer must acquire a fixed number of items either at a fixed buy-it-now price in the open market or by participating in a sequence of auctions. A bidder could find themselves bidding for items which are still plugged in, and the great advantage of these auctions taking place on the premises is that they have the opportunity to view the goods as they were being used, and may be able to try them out. Every year several of these specialist auctions take place and quite apart from the value to someone who wants to be addressed as Baron or M’Lord, they are enormously entertaining for anyone interested in people watching. A: You must register with a valid ID (Driver’s License) on auction day and receive a bidder card in order to bid. Buying real estate at an auction allows you to experience a quick purchase and closing, to eliminate lengthy negotiations and to secure the market value was paid. They may also assist with questions during the auction, including asking the auctioneer to pause if necessary. An auction moves very quickly and a single piece of real estate will be sold in about 5 minutes from start to finish. The auction approach is presented as a tool to real estate professionals to supplement their business, not replace it. Your people are so professional in how you look, how you run the auction, how you are open to questions and how quickly you get the things sold. If I am ever in need of doing another real estate auction, I will definitely be looking for Diamond S to do it. Thanks again for your help, I am very satisfied with the service you provided. If the reserve price is not met during the bidding which is more and more the case in this real estate market then the memorandum of bid or auction contract is written up and presented to the seller for approval. Real estate sold at auction is presumed to be sold with a reserve unless advertised as being absolute, unreserved or with no minimum & no reserve. If the answers to these questions are yes, yes and yes – your property may be a good auction candidate. Now that’s quick, and that is ONE OF THE BIGGEST BENEFITS OF SELLING REAL ESTATE AT AUCTION! It’s typically based on a traditional real estate broker’s opinion of value or even the last list price. In order to successfully market an auction, auctioneers spend a considerable amount of time, efforts and money to promote an auction. I’ve never seen a foreclosure auction – or otherwise – where you could make contingent bids. I kept watching until a house came up for sale in a neighborhood that had high rental demand, low supply, and strong rents. Encouraged by the success of my eBay side hustle, I recently decided to try my hand at a real estate auction. We invite readers to respond with questions or comments. Yes, that is data from February of 2009, but your chances of getting a killer deal on a home at the auctions are only increasing. ForeclosureRadar , a comprehensive auction-tracking tool for real estate professionals, states that 80 percent of homes that were auctioned in California in February of 2009 were sold at an average of 36.3 percent below listing price and 40 percent of the homes sold at auctions were sold for 50 percent or a greater discount. There’s no need to make your first bid at the maximum price that you are willing to pay, if you can potentially win the real estate auction for a lesser bid. By gauging the average pricing in the neighborhood, you will be able to get a sense of what appropriate bids may be on the day of the real estate auction. This is an opportunity to purchase the home, from the defaulting owners, before the foreclosure auction even occurs. Pre-foreclosure is the time between the Notice of Default being delivered and the foreclosure auction itself. REO occurs when the property fails to be sold at the above foreclosure auction and ownership is assumed by the bank. If you think basic repairs for a house will run $15,000, you don’t want to end up paying $130,000 at auction if the move-in ready home next door is listed at $140,000. Expect the house needs, at the very least, cosmetic upgrades: new carpet, paint, appliances and kitchen cabinets. In most regions, notices about upcoming auctions are published in legal newspapers or the legal section of the local paper. Many buyers have never attended a foreclosure auction before – either a large auction in which dozens of properties from across a large geographic region will be sold or a smaller trustee auction. The county’s portion pays for the maintenance, operation and repair of tax-forfeited land on inventory. Peter G. Miller is a nationally syndicated real estate columnist. Most liens are sublimated (or wiped out) by a foreclosure sale. All real estate investing—like all stock market investing—implies some level of risk. Lastly, real estate values are related to local economies. If that doesn’t work, the lender may start foreclosure proceedings, and the home may be put up for sale at a public auction. Property liens and outstanding taxes may also exist on houses auctioned by owners or as part of an estate settlement. Before bidding, be sure to check for any liens against the home Work with the auction company and research the home’s title as thoroughly as possible before bidding. In a foreclosure auction, the lender cannot profit from the auction, and these properties are often sold at less than market value. The bank re-possessed the home and wants to sell it in order to recover the money it originally lent. In these situations the owner/servicer tries to sell it through standard real estate channels. When the entity (in the US, typically a county sheriff or designee) auctions a foreclosed property the noteholder may set the starting price as the remaining balance on the mortgage loan. The process for buying at the foreclosure sale I outlined is only the process for Colorado. I can get a better deal on the MLS than I can at the foreclosure sale in my area. RealtyTrust’s highly trained Auctioneers and Auction Specialists educate themselves on each property we sell so that they can answer your questions quickly and accurately. I understand that you are looking for other customer reviews (which is a great idea), but if you have any questions about our policies, website, etc – please don’t hesitate to ask. Her work has been published in law reviews, local newspapers and online. We guarantee a clean clear title to the property or your down payment is refunded in full, buying at auction is very easy, please let us know if you have any questions or concerns. This is a brutal myth fabricated by some traditional real estate agents that used this ‘fear’ technique to frighten sellers from utilizing an auction. If you work for another Government agency, check your agency’s policies. If you wish to bid on all but purchase only one, than you need only one deposit check (generally the properties will be sold in the order they have been listed on the website and flyer.) If you are planning on buying more than one property, you will need a deposit check for each one. Typically, a wide variety of real property is available, including homes, condominiums, commercial buildings, operating businesses, and vacant land. Alternatively, a real estate auction may offer you, the potential bidder, the ability to submit a bid in writing, also called an absentee bid, which will then be considered during the bidding process. Other participants in a real estate auction, especially big ones, might seem to represent the lender, which is pure drama, and other attendees could be mortgage lender representatives. A week earlier, the company sold for $1.72 million a Charleston home that had languished on the market for four years under two different real estate firms without a single offer. Sales of residential real estate at auction grew by more than 47 percent from 2003 to 2008, according to the National Auctioneers Association. The way agency works in Idaho, the listing agent can not fully represent you because they already work for the seller. The mass promotion of the property being auctioned is what makes this method of sale work. Partition sales involve marital disputes or partnership disagreements, and may or may not be conducted under a court order. Settlement times, deposits, and terms of sale are advertised prior to the auction, as in the case of a foreclosure. Feel free to bring an expert with you, such as a knowledgeable friend, property inspector, contractor, real estate agent or appraiser. Real estate investor Justin Pierce writes an occasional column on the art of buying and selling houses for profit. This will allow for you to complete your Bidder Registration, (if you have not already done so), collect your Bidder Packet, take a final tour of the property and ask any remaining questions you may have before the live auction commences. We will work closely with you in the days leading up to the sale, by providing you the information you need to evaluate the property and be prepared to make a sound decision on the auction sale day. With traditional real estate sales, many buyers of luxury homes, ranches, penthouse apartments and other properties worry that they will pay too much. Has conducted hundreds of Real Estate Auctions, promoting the properties of each individual seller and giving our full attention to meeting the seller’s goals for the property. Our company utilizes both traditional brokerage and accelerated auction marketing to sell all types of real estate including commercial, industrial, resort, multi-family, mixed-use, waterfront and residential properties. We hold real estate broker and/or auctioneer licenses in Maine, Massachusetts, New Hampshire, Vermont and Florida, with affiliates across the United States. There are many statutes that regulate the foreclosure proceedings for a mortgage. This approach allows the auction method of marketing to work at its maximum potential and creates the utmost motivation for prospective buyers to become interested in the property and ultimately attend and participate in the auction. A profitable auction opportunity is created when there is limited supply of a particular type of property whose demand in the real estate market is relatively high or the market is declining with limited buyer’s interest in this traditional sales process. Often a buyer tends to assume that if a property is up for auction instead of being sold in the regular real estate market, there is a defect or something about the property that the seller believes will hurt his sale or does not wish to disclose. When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. If the default isn’t corrected (the loan must be brought current) within three months, a foreclosure sale date is established. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure. At That Point, The Successful Bidder And The Seller Or The Seller’s Representative Will Sign A Real Estate Contract, The Necessary Deposit Will Be Collected And A Closing Date Will Be Set, Typically Within 30 Days Following The Auction. Professional Bid Assistants Will Be On Hand To Help Address Questions And Ensure That Everyone Who Wants To Bid, Does Indeed Bid. The banks lose around 20% to 25% of the loan’s value on a foreclosure. In addition to searching the usual resources such as newspapers and online real estate listings and websites, you will want to search various bank and government websites for REO properties. Getting prequalified is a process in which a prospective borrower provides financial and other information, such as employment history and funds for a down payment, in order for a lender to determine how much loan the borrower may obtain for the purchase of a home. Negotiating the purchase price of a foreclosed home may take a little longer than a typical real estate transaction because the process may require multiple levels of approval. And in order for a buyer to feel comfortable enough to purchase a property at auction, the Buyer must be confident that there is ample opportunity to investigate the property thoroughly before competing in active bidding. Some homeowners who are losing their homes to foreclosure harbor resentment toward their lenders. This contrasts with traditional real estate listing contracts, in which buyers typically maintain many options for easily exiting the purchase contract. If the market value is at a level below your existing mortgage, then that is the price that you have to work with regardless of what selling method you choose. Our custom marketing ensures that your property stands out when buyers and Realtors are evaluating commercial properties, land or homes for sale in Kansas City MO and surrounding areas. We will then implement our strategic Accelerated Marketing Program” that is designed to reach buyers that will be interested in owning your real estate. The Professional Guide to Real Estate Auctions” by Stephen Martin and Thomas Battle III. Other factors to consider are the rate of real estate appreciation in the area and the potential for increasing the property’s value by making repairs and improvements. The opening bid at the auction is based on the total amount owed to the foreclosing lender and may include fees incurred because of the foreclosure proceedings. In California, the right of redemption for a foreclosure sale lasts for a year. A: Single and Multi-family Homes, Condos, Townhouses, Land (Commercial, Residential & Agricultural), Commercial Buildings (Retail, Warehouses, Operating Businesses). Sometimes they end up with a property with a $50k+ lien on it, but it doesn’t matter so much to them because they’ve got $30M to work with. Relisting – re-selling an item that has already been sold at auction, but where the buyer did not take possession of the item (for example, in a real estate auction, the buyer did not provide payment by the closing date). Proxy bids are common in auctions of high-end items, such as art sales (where the proxy represents either a private bidder who does not want to be disclosed to the public, or a museum bidding on a particular item for its collection). Consignee and consignor – as pertaining to auctions, the consignor (also called the seller, and in some contexts the vendor) is the person owning the item to be auctioned or the owner’s representative, while the consignee is the auction house. Katehakis and Puranam provided the first model 56 for the problem of optimal bidding for a firm that in each period procures items to meet a random demand by participating in a finite sequence of auctions. Led by sites in the United States but closely followed by UK auction houses, specialist Internet auctions are springing up all over the place, selling everything from antiques and collectibles to holidays, air travel, brand new computers, and household equipment. Also in this group you will find auctions ordered by executors who are entering the assets of individuals who have perhaps died in testate (those who have died without leaving a will), or in debt. In short, if the true market value is at a level below your existing mortgage, then that is the price you have to work with regardless of whether you use the traditional method of sale or the auction method. If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. Our objective to joint venture with real estate professionals has never changed; we want to offer Realtors a solution, not become their competition. This is a requirement as professional real estate auctioneers; we have a fiduciary responsibility to the seller and lender to keep a record of everyone who enters the property and/or is interested in purchasing the property. Real estate is not sold contingent upon financing, inspections, appraisals, feasibility studies or any subject to clauses. There are lots of resources available on the Internet, from title companies, real estate agents, bankers and more to help you figure out what a property is worth. If there is anyone with the ability to predict the selling prices of real estate at auction before it happens or the price of a stock, sporting event, horse race or whatever please let me know who they are so we can hire them. In this situation we are dealing with lenders to accept short sales for less than what is owed even if the property is not in foreclosure. 1) There are thousands and thousands condos just like it in South Florida and 2) in order to motivate buyers and auctioneers for that matter, they need to have realistic expectations. The auctioneers we work with average 80%+ closure ratio, meaning over 80% of the properties that are brought to auction result in the property being SOLD! I was pretty sure that the bank was going to accept my bid because a) it was above the stated reserve price, and b) it was only slightly less than the foreclosure amount. But while I was there, I became distracted by a HUGE throng of people attending a concurrent foreclosure auction. Foreclosed homes can sell for up to 50% off market value, depending on the location & type of foreclosure. This is where working with a specialized foreclosure agent can come in handy. The most important thing to understand about closing on a foreclosure is that it’s a non-standard transaction and the lender will have their own processes and requirements. Foreclosure sale ads from the VA and the FHA are posted in newspapers on a regular schedule. This tends to be a slower process and involves more paperwork than other types of foreclosure transactions. REO is the most popular method of buying a foreclosure because it’s generally the easiest and safest way. It also helps the lender control costs by avoiding the foreclosure process. FACT: Foreclosures come in four primary flavors: Pre-foreclosures or short sale, auction, real estate owned (REO), and government owned. Understand that foreclosure is a process and there are multiple stages during which the homeowner can resolve the delinquency or a potential buyer can make a purchase. In general, when purchasing a foreclosure expect a very impersonal experience. If you’re up for the inherent risks, you’ll want to know how it differs from a normal real estate transaction, what options you have, and where to look. Most of the auction homes hav been on the foreclosure market for 18 to 24 months because of their high price and stagnant economy. Hard money can be risky, but if you can afford to make those payments and you think you’ll sell the property fairly quickly, it can work. Instead, research different foreclosure tracking tools. Fair warning: If you have a full-time job (and you aren’t in real estate), it could be challenging to find the necessary time to prepare to bid at a housing auction and do the necessary research. If you can’t make it down there because of your work schedule, consider having a friend or relative experience the action and report back to you. Foreclosures still abound in the U.S. real estate market, although some areas (think Florida and Las Vegas) have way more than others. The amount matches the real estate commission in some states (a percentage of the final sales price), but other firms set a flat commission fee. The foreclosure auction is generally considered best left to the professional buyers, who understand the legal aspects and who can afford the risk of buying a property without being able to inspect prior to the auction. Zillow also posts foreclosure auction information on homes, including location, date and time. Be prepared to obtain a cashier’s check, money order or certified check for the required down payment (amount will be calculated by your property manager and will include a non-refundable application fee). If the property taxes remain unpaid after the statutory expiration of redemption period”, the land forfeits to the State of Minnesota. Real estate tends to attract liens, so it makes sense to get title insurance for the property with the insurer you prefer. Since it’s the lenders that are selling houses, why don’t they just finance the foreclosure sale? Some properties are zombie foreclosures,” a situation where the borrower has abandoned the property before the foreclosure has been completed. If you purchase property at a foreclosure auction, the original owners may exercise their right to recover the home by paying off their dept. Purchasing a foreclosed home from a lender directly or on the traditional real estate market is less risky than buying a foreclosed home at auction because, in a longer process, important information about the home may come to light. In a weak market the foreclosing party may set the starting price at a lower amount if it believes the real estate securing the loan is worth less than the remaining principal of the loan. If repossession is imminent the debtor must seek a temporary restraining order. Because the right of redemption is an equitable right, foreclosure is an action in equity. Alternatively, the court may order the property sold subject to the mortgage, with the proceeds from the sale going to the payments owed the mortgage holder. This process is generally much faster and cheaper than foreclosure by judicial sale. Under this system, the lender initiates foreclosure by filing a lawsuit against the borrower. I have made a lot of money from houses we bought at the foreclosure sale, but I have also lost money because of the nature of the auction. Every state has different laws regarding foreclosure auctions, which will make it very tough for inexperienced buyers. Typically we always suggest that the buyer do proper due diligence on any property they are looking to bid on. This might include title research, obtaining a real estate lawyer, driving near the property (and viewing the inside if open houses or private viewings are allowed), contacting the listing agent, etc. A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold. Foreclosure auctions, conducted on courthouse steps, in convention centers across the country and even at the property in foreclosure, can be intimidating. After viewing one of our properties, please contact your bank or a bank listed on the Financing Tab, we work with numerous banks in help to secure financing for our properties. Naturally, it’s always best to work with a professional who has strong online capabilities and is recognized by the National Auctioneers Association, the auction industries most recognized trade organization. You may also send a representative to bid on your behalf by signing over temporary notarized Power of Attorney, which must include the buying party’s social security number and appropriate language for having authority to bid/purchase real estate. Grand Estates has sold hundreds of homes in the $1.5 million to $10 million range at absolute auctions in some of the country’s most exclusive resort areas: Aspen, Colorado; Palm Beach, Florida; Nantucket, Massachusetts; Charleston, South Carolina; and La Jolla, California, among others. Not just an agent, Repoman- Dan Rowe is a licensed real estate broker in the state of Idaho and Realtor in good standing since 1991 holding the following designations: Accredited Buyer’s Representative, Certified Residential Specialist and Graduate of Realtor Institute. Under Idaho law, your agent is required to disclose adverse material facts, work only in your best interest, perform the terms of your contract, account for all monies, keep everything confidential and protect you every step of the way. When you work with us, your property gets the kind of professional attention it deserves, aiming the spotlight solely at your property. Minimum Bid Auction – An auction performed at an announced minimum price, which is stated before the auction commences. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off. Bank of America said that the foreclosure dept tech has not reviewed the short sale offer and until they do, there would not be any postponement. Also, according to mortgage financier Freddie Mac, the typical foreclosure cost is nearly $60,000. Despite headlines of the slumping housing market and increased foreclosure rate, the banks still don’t get the idea. Where marketing approaches of traditional brokerage firms can last many months or even years, the auction process takes every aspect of effective real estate marketing and dramatically compresses the sales cycle, minimizes carrying costs, and creates a single moment of competitive bidding that determines the property’s true market value. Father Time® Auctioneers have earned the Accredited Auctioneer of Real Estate D esignation AARE from the National Auctioneers Association Education Institute with training in the most up to date real estate marketing and sales strategies available today. To sign up to auction you property, complete our Free Property Auction Analysis so we can learn more about your property and advise you as to next steps in the auction process. Anyone can bid at an auction as along as they have this deposit. If an auction is postponed, the trustee should provide the new auction date. For some buyers and investors, driving by the property has also facilitated a casual meeting with the owner (you may be able to still work out a last-minute deal before the auction) or yielded a wealth of unexpected information from a talkative neighbor. Auction properties sometimes do not allow for a home inspection or even provide a view of the inside prior to the auction. To discover properties that will be auctioned off, potential buyers can check county recorder websites and foreclosure listing services. Our Multi-Parcel method of selling real estate involves dividing a property into multiple tracts and then utilizing open forum bidding on individual tracts, combinations of tracts, and then whole property. You have done an excellent job of following up after the auction with people who could not make the auction. Most auction contracts must close within 30 days of the auction date. I sauntered to the edge of the crowd, and saw a live, in-person foreclosure auction run by a company called When I got home, I pulled up their website. While buying a foreclosure is becoming much more mainstream, the true bargain hunters are finding their listings through We provide all the information and resources you need to make your home purchase as easy as 1-2-3! Ultimately, buying a foreclosure is a complex process that can result in a true bargain when done right or a terrible decision when approached carelessly. Typically short-sale homes are in better condition than foreclosed properties because the parties have found a solution before a legal foreclosure proceeding begins. Each of these scenarios has its own caveats, so be conscious of the type of foreclosure you are dealing with and be diligent with any special considerations. There are various stages of foreclosure and various types of entities that may be in possession of the property during the transaction. Follow the published starting bid on your list (which can change), and look at the position of the lien that is initiating the foreclosure. Either before the day of the auction, or on auction day, you will need to get registered with the auction company. Tax forfeiture usually lags behind foreclosure by several years — in part, because the tax-forfeiture process takes much longer. At , we believe that bringing buyers and sellers together with an easy, transparent platform yields the true value of any real estate asset, whether it be a luxury home, a multi-story Class A office building, an entry-level foreclosed home, or a self-storage facility. He blogs at and contributes to such leading sites as , the Huffington Post and Peter has also spoken before such groups as the National Association of Realtors and the Association of Real Estate License Law Officials. The overwhelming majority of foreclosure sales are conducted using a reserve, since lenders are trying to capture at least a minimum amount of money to offset their losses. But there are some inherent risks involved in buying a foreclosure home—like the inability to do a thorough internal inspection. First, there are short sales or pre-foreclosures , deals where an owner who can no longer afford the property tries to work out a purchase with a buyer, subject to the approval of the lender. United Kingdom : Foreclosure is a little used remedy which vests the property in the mortgagee with the mortgagor having no right to any surplus from the sale. Foreclosure in the People’s Republic of China takes place as a form of debt enforcement proceedings under strict judicial foreclosure, which is only allowed by law of guarantee and law of property right. Australia and New Zealand : Foreclosure has been prohibited by law in New Zealand for well over a century. In this case, the court overseeing the foreclosure process may enter a deficiency judgment against the mortgagor. In most situations, insurance requirements are sufficient to guarantee that the lender gets some pre-defined percentage of the loan value back, either from foreclosure auction proceeds or from PMI or a combination thereof. Time from notice of foreclosures to actual property sales is dependent on many factors, such as the method of foreclosure (judicial or non-judicial). In a foreclosure proceeding, the lender also bears the burden of proving they have standing to foreclose. A debtor may also challenge the validity of the debt in a claim against the bank to stop the foreclosure and sue for damages. This protects the creditor if the attempt to stop foreclosure is simply an attempt to escape the debt. Lenders may also accelerate a loan if there is a transfer clause, obligating the mortgagor to notify the lender of any transfer, whether; a lease-option, lease-hold of 3 years or more, land contracts, agreement for deed, transfer of title or interest in the property. Foreclosure by power of sale, also known as nonjudicial foreclosure, is authorized by many states if a power of sale clause is included in the mortgage or if a deed of trust with such a clause was used, instead of an actual mortgage. The foreclosure sale is on Wednesday morning at 10 AM. You can call the public trustees office on Wednesday before the sale to see if any properties you are interested in are still going to auction. We stopped buying at the foreclosure sale last year, because competition has increased, pushing prices too high. The riskiest are the local foreclosure sales, because they require the quickest payment with the least amount of due diligence available. The auction or sale starts with the auctioneer asking for an opening bid. An auction needs 2 buyers to be successful, we at Dustin C. Snyder Auctioneer LLC. This form can be printed out and completed prior to the auction. Inspect the Property – we recommend a visit prior to auction day. Doerr Auction & Realty, Inc. Generally, a public auction is for sale by owner. Here are a few pointers on buying a property at auction. On auction day the registration period usually begins from 30 minutes to two hours before the scheduled auction time. Therefore, we are committed to providing you with a clear and concise understanding of the property being sold, the terms of the auction and the auction process. As leaders in the auction industry, we adhere to a strict Code of Ethics, which spells out our obligation to properly inform buyers during the marketing campaign whether the auction is absolute or with reserve. Please remember, all auction properties are sold AS IS”, and by placing a bid at public auction you are entering into a binding agreement to purchase real estate…If you do not understand, please do not bid. RealtyTrust Auctioneers hold public, oral auction on the premises of the properties being auctioned. Sellers can increase buyers’ interest in the property by providing more information about the property before the auction. Thus, by choosing a minimum bid auction, sellers may limit the number of buyers who are interested in the auction. The down payment is required the day of the auction unless bidding on the online platform, if your bid is the successful high bid on auction day, the down payment is required, and is held in our companies escrow account. We sell thousand of acres of land, numerous homes and farms at auction. A huge benefit to offering property in an online auction is the asset’s exposure to a large marketplace. Much like a traditional listing, there will be property inspection opportunities during the online auction process that will be facilitated by an agent or broker. On auction day, there is no substitute for experience. Our website is incorporated into the official Treasury site, CWS is not affiliated with any other auction information services, seminars, or publications, and we never charge a fee to access these auction listings. Certain real properties may be offered for auction on the Internet. Many states have a period of time after the auction during which the final sale and transfer of ownership must be approved by a court. Don’t pay too much for a distressed property or make the mistake of making improvements on a property before you are sure it is yours, even after a successful bid at auction. It’s always wise to contact the auctioneer on the day before the auction or the day of the auction to determine if it will still take place as planned. It could be difficult to back out of your bid later, depending on the terms of the auction. The buyer who ultimately wins the bid at the auction is the only person whose check will be deposited. Do your research on what you will need to participate in the auction. Therefore, it pays to attend a large auction and learn the buying process. Wise noted million-dollar properties are sold every day at auction. Others are on the auction block because the owner needs to sell by a specific date, such as in the case of a job relocation. Of course, for buyers, there are deals to be had when buying a property at an auction. Setting a reserve, on the other hand, requires the auction to reach a certain amount or there’s no sale. Selling your home through an absolute auction means the highest bidder gets the home no matter what the bid. Others charge the buyer an auction premium, usually 10 percent. A good advertising strategy can make the difference between a successful auction and one that flops. Another way is to look in your local newspaper for the regional auction firms that do the most business in your area. Some people still associate auction sales with distress, but auction professionals say these days that’s absolutely not true. And on auction day, potential buyers must be prepared to write a check for the remainder of the 10 percent deposit should they have the winning bid. Qualified buyers are able to preview a property by appointment starting five days before the auction. Myth #7: If the property being auctioned does not sell, it’s more difficult to attract potential buyers after the auction whether in the traditional market or another attempted auction. So although there are costs that may be a little higher in an auction than in a traditional sale, the rapid results that an auction can bring often end up saving the seller even more in carrying and maintenance costs of a property they need to liquidate. On the day of the auction, the auctioneer will arrive at the property at least one-half to one hour before the auction time. Although the auctioneer does not require that you are pre-qualified for a loan, it may be helpful for you to know your limit before attending the auction. See the auction advertisement or call the auctioneers for specific inspection times. In the case of a foreclosure, the auctioneer does not have access to the property before the auction, but the property may be opened when we arrive to conduct the auction. Generally, the property will be open for inspection on the day of the auction, typically one-half to one hour before the scheduled auction time. In many cases, properties offered at auction are in similar or better condition than properties currently listed for sale. Auction properties may range from excellent condition to poor condition. Additional terms may be announced at the auction or may be posted at the sale site. Your responsibilities as a purchaser are advertised prior to the scheduled auction date and will be read by the Auctioneer at the time of sale. Make sure you clearly understand the terms and conditions of the auction before making a bid (these will be included in the bidder packet you receive when you register). Every auction that I know of has a buyer’s premium of 5 percent. Buyers are required to do most of their due diligence prior to the auction so many already have put a lot of effort into an auction home before the bidding even starts and losing means all that time was wasted. Any buyers who show up to the auction are automatically vested. Many people think they’re going to get a steal of a deal at auction and they don’t do their math beforehand. You and your party will be escorted to the closing room immediately after the auction to complete all necessary documents. Our properties are sold without contingencies, so you will need to make arrangements to have financing in place (if you require it) before the auction day. When you make the decision to attend one of our auctions, you will know that the property will sell on auction day. As luxury leaders in the auction industry and members of the NAA, we recognize and adhere to their Code of Ethics, which spells out the auction company’s obligation to properly inform the buyers during the marketing campaign whether the auction is absolute or with reserve. When you see an advertisement for an auction, make sure that you understand the difference between an absolute” auction (an auction without reserve) and a reserve auction, as sometimes properties are subject to meeting an undisclosed reserve amount before the auction company can sell the property. As a buyer, it is important for you to know that at an auction conducted by Supreme Auctions, you will be provided with all the information you need in preparation for the auction day. If you feel a need for your bid to be totally anonymous, discuss this with the auctioneer prior to the auction beginning. Also there are NO other contingencies in the sales contract such as a) property inspection after the auction; b) the sale of another property before settlement can occur, etc. Any financing arrangements will need to be done prior to the auction day. Contingencies – All properties are sold As Is” and NOT subject to the buyer obtaining financing after the auction. Usually $5,000 but can be more or less, see each specific ad. This is required for all registered bidders at the auction. A valid government Photo ID is required at the auction. A properly implemented auction marketing campaign will create significant activity which should translate into a high level of participation at the auction. Property will be offered at auction and the final bid is subject to the owner’s approval. As a seller you can set the terms of the auction – Absolute, Minimum Bid or Subject To Confirmation. Our auction company has worked with brokers and with auctioneers across the country to bring satisfied buyers and sellers together. Both Sellers and Buyers appreciate the benefits of the auction method. Many real properties are candidates for being sold at auction. Auction reduces the burden of negotiation process from the sellers mind. It should be ensured that the marketing campaign of the auction event focused properly to have a high impact. It is necessary to make sure before the auction that the buyer is financially secure so that the seller will not have to wait for receiving the entire payment. Also the property owners have absolute control on the auction sales process. Auction opportunity arises when a seller’s mind is auction oriented with a hope that the property will fetch a fair market price. This premium is always disclosed before the start of the auction. The way in which money exchanges hands depends on the terms of sale set up by the seller in the auction; sometimes an auction may require the winning bidder to pay a buyer’s premium, which is an amount of money in addition to the winning bid that the buyer must pay. Winning – The winning bidder at an auction will be notified through whatever medium is specified by that particular auction. Every auction has Terms of Sale, which an investor should read and understand before registering to bid. Registering – The first step in performing an auction is to register to bid in whatever venue the auction requires. After the Auction – Since a winning bid on an auction is not a legally binding contract, once a winning bid has been accepted, you must make sure that the proper legal channels are followed to transfer ownership of your property to the winning party. It is also important to make sure that the winning bidder in your auction is notified in a timely manner, so the transaction can be completed as quickly as possible. Setting up an auction includes deciding what type of auction to perform and how long it will run, estimating the value of the property, and determining where you wish to advertise your auction. If you are a seller, an auction can expose your property to a number of buyers who are prepared to offer a fair price for the property. Depending on the type of auction and the preferences of the seller, the auction type used in any situation could be any combination of these, and it is important to find out what kind of auction best fits your preferences before auctioning or bidding on a property. The auction goes through as if without a minimum price, but if the unannounced reserve is not met, there is no winning bidder for that auction and no one receives the property. Reserve Auction – An auction where the minimum bid is not published, but the seller privately determines a minimum bid which he is willing to accept on the property (reserve). For instance, a listing agent will receive different compensation than a broker who represents a buyer on auction day. Auction agreements obligate the seller to transfer title to the highest bidder in an absolute auction; the auction agreement obligates the seller to transfer title to the highest bidder that meets or exceeds the reserve price in a non-absolute offering. Auction is an aggressive marketing program that increases potential interest in and awareness of a property. A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction (depending on auction type), and actively participates in the sale process. An auction generates excitement and heightens buyer interest. Creates competition among buyers – auction price can exceed the price of a negotiated sale. The winner of the auction will then receive the trustee’s deed to the property. None of these are accurate, especially when it comes to Double J Auction and Realty. Learn more about the many advantages to choosing a property auction for both the buyer and the seller in our presentation! All advertising materials will announce the buyer’s premium before the auction date. If An Auction Is Conducted On Site, We Will Allow Bidders A Final Inspection Period Immediately Prior To The Auction To Take One Last Look Around. One Of The Greatest Determining Factors Between A Successful Auction And A Not So Successful Auction Is The Confidence Of The Bidders About What They Are Buying. At Powell Auction We Provide The Service You Need To Get Results. An Auction Immediately Establishes A Fair Market Value. Whether You Are A Seller Or A Buyer, Each Auction Will Surpass All Expectations. How do I get a list of properties going to auction from the county? Sellers and lenders hire private auction companies to host auction events. You either get the list via the assigned trustee website or through wholesale auction companies for a fee. How do i get a list of properties that are up for auction on any giving day? I just came back from an auction in which i was prepared with a cashiers check made out for myself and it was rejected by the trustee. Eventhough they knew the auction date is today at noon. We can’t decide whether to hire a service to bid on the properties for us or actually try our hand down at the auction. You also need to be careful as a lien by the IRS that the property is attached to can be collected for up to six months after the auction. Without doing the proper research on a property, you could end up bidding on and winning an auction property that may have 2 liens on the property. There are some great deals to be found at the public auction but there are also some large risks. Arrange a hard money loan prior to the auction or pay cash for the remaining balance. Anyway very interested to learn how this auction ;ease let me know if you can assist me thank you. This company specializes in Maricopa County Public Auction. If you do your research and due dilligence well, you’ll find some great deals at the public auction. It is always a good idea to do your research and set your budget before you attend an auction. Be prepared if you decide to purchase at an auction, most auction proceedings happen quickly and you have little time to deliberate. An auction isn’t successful if the winning bid doesn’t close. The winning bidder-as well as every auction attendee-comes away from the experience impressed with the professionalism of the event. So if you are given a chance to inspect a home before the auction takes place, seize that opportunity! It’s important to understand that most homes sold through an auction are sold as-is. You might only have to make a down payment at the auction (as opposed to the full purchase price commonly required at a sheriff’s auction). Before the bidding begins, a representative from the auction company will explain the bidding process and the terms of sale. Upcoming events will be advertised on the auction company’s website well in advance. They can also be conducted by private companies, such as the Williams and Williams auction company (). In true auction fashion, the home will be sold to the highest bidder. A public auction for a foreclosed home will normally take place at the county courthouse in the county where the property is located. And this is why the bidding for auction homes generally starts below market value. In fact, we encourage your attendance so you can experience a live example of the auction process firsthand. Buyers who are unlikely to close are dissuaded from bidding because of the stringent terms of auction. A: Rarely does a Cates auction purchase contract fail to proceed to closing. As is” simply means that you are not offering to make any additional improvements to the property and the buyer is bidding on and buying it in the condition it is in at the time of the auction. According to the auction terms, a prospective buyer cannot make his or her bid contingent on any outside factors such as financing or inspections. A: Everything that we sell at auction is sold as is” and non-contingent,” with a 30-day projected settlement date. Sellers are only required to invest in the advertising and expenses of their auction event. The fact that you are selling at auction does not change the market value of your property. Our sellers have desirable properties and have chosen auction as a means to expedite and control the terms of the sale. We are happy to help you determine if auction is an appropriate strategy for your seller. Complete the Free Property Auction Analysis today to so we can talk about if auction is right for you! The best way to see if auction is right for you and your property is to talk with us. We’ll consult with you regarding the process and provide a recommendation for your property. The Auction vs. Ordinary” section will give you a side-by-side comparison of auction and a traditional sales approach. In this type of auction a minimum selling price is established prior to the auction that is acceptable by the seller. The main advantage to the seller in this type of auction is they are not obligated to accept a price other than one that is entirely acceptable to them. By utilizing an auction with reserve the seller can be flexible in accepting or rejecting all bids. An Auction with reserve means that the property is being offered subject to the seller accepting or rejecting the high bid. The main advantage of an absolute auction is that it generates maximum response from the marketplace. There is no minimum and the seller cannot reject the highest bid at the auction. A property that is offered at absolute auction means that the property will absolutely sell to the high bidder regardless of the price. Prior to the auction we will discuss your goals and specific needs. Remember each and every auction is different, so it is impossible to assume that your auction will be exactly like the one that you attended. Certainly, we encourage your attendance and would be pleased to have you experience a live auction process firsthand. The amount of deposit will clearly be spelled out in auction literature. This money will be refunded to you at the end of the auction if you are not the successful bidder. Most realtors do not have auction experience and will probably steer you away from using an auction. Very Important; an auction will not succeed if good and proper advertising is not used. The auction company will itemize where they spent this money and return all unused deposits. It is also the biggest reason that sellers choose not to auction their home. You absolutely must do everything possible to make your auction succeed, with the 2 most important items being selecting the right company and the right type of auction. Your biggest expense would be losing money on a failed auction. It is very important to know how to start the bidding at an auction properly, if not there will be few if any bidders. The most important items when selecting an auction company to sell your residence or property is experience and results. The seller usually makes the most money on an absolute because more buyers attend and as a result the price is bid up higher with the auction process. A good auction company will not start the auction unless they feel comfortable that there are buyers signed up that will bid at least a fair price for the property. The public does not like it because they could go through the entire auction process and have the winning bid and later find out it does not meet the reserve price. Ii. Disadvantages: Buyers may not attend auction because they are not certain they will get a good deal on the property. No one knows this price except the seller and auction company. Reserve: The seller tells the auction company they will not sell this property for less than a certain price. Bidding at an auction can be intimidating, especially if you’ve never done it before. Arrive at the auction location early and locate the auctioneer as quickly as possible. Call the trustee the day before or the day of the auction to check one last time if the auction has been canceled or postponed. A reasonable purchase amount at auction is at least 20 percent below full market value, and much better deals are often possible. It’s also important to determine the bid amount even in states where you don’t need to bring the full amount to the auction. In most states, the public auction clears out any junior liens, but there are exceptions such as tax liens, which typically will continue to be in effect after the auction. If there are outstanding liens on the property, the winning bidder at the auction may be responsible to satisfy these liens in some cases, so it’s important to check for any liens and the priority of the liens before you bid at the auction. RealtyTrac subscribers have access to the opening bid amount and the estimated market value for properties scheduled for auction. It’s important to know this amount so you can determine if the auction represents a potential bargain purchase when the opening bid is compared to the property’s market value. Of course, the best education will come from simply observing a local auction. In some states, bidders are required to bring the full amount they want to bid in the form of cash or cashier’s check to the auction. If the auction location is not listed on RealtyTrac, you can typically get that information from the trustee or the county clerk. After a property is scheduled for auction, the owner has a chance (typically less than a month) to stop the auction by paying the amount owed to the foreclosing lender. A good tracking system is important since most successful auction buyers pursue several properties sometimes over a period of several months. We use this type of auction to let the buying public know you are now willing to take less than previously advertised. The only time we suggest a seller use this type of auction is if they have had the property on the market and overpriced. Minimum Bid Auction: In a minimum bid auction there is a required opening bid that is the seller’s minimum selling price. If you are a serious buyer you should make time to attend a reserve auction. Just because a seller doesn’t choose a absolute auction doesn’t mean they want more than their property is worth. The drawback to this type of auction is that a potential buyer might not take the time to come to the auction because they assume the seller won’t accept their high bid. If on the day of the auction they decide to accept less they can, but they do not have to. As in an absolute auction, when all interested parties attend an auction the final bid is the current market value. They set their minimum selling price when they sign the auction contract. Reserve Auction: In an Auction with reserve, the seller reserves the right to reject the final bid. The reality is that when all interested parties attend an auction the final bid is the current market value. Absolute Auction: In an absolute auction, the property sells to the highest bidder regardless of price. The right of redemption is a provision that allows the seller of the home to re-acquire the property, even after it is sold at auction. Proof of funds can be as simple as providing a copy of a cashier’s check to the auction trustee before it begins. In the auction with reservation format, the seller of the auctioned home may reject the sale for any reason. In the absolute auction format, the home is sold to the highest bidder, regardless of the price. The county in which the auction takes place uses one of several auction formats. Familiarize yourself with the auction terms ahead of time to avoid any unpleasant surprises. Similarly, the auction could have a hidden reserve price that sets the limit on the minimum acceptable price. More or better financing options may be available by purchasing a bank-owned property the traditional way, instead of at an auction. Each auction company/county government has its own requirements for payment. Buying a property at auction often requires a lot of cash. Auction properties aren’t always great deals, but the potential to get a great deal is such a big draw that, for many people, it compensates for the numerous potential drawbacks of buying an auction property. Some auction companies have open houses so potential bidders can walk through the properties ahead of time. What can potential bidders learn about auction properties before bidding? The starting price of the auction may be the balance remaining on the mortgage , or may be a lower amount designed to spur bidding. If the homeowner doesn’t pay the balance owed or renegotiate the loan with the lender, the home can be put up for auction. Please see the auction details for the sale you are interested for bid deposit requirements. Please bring your driver’s license or other photo ID to the registration tables on auction day. A: The auction is open to the public and there is no admission fee required to attend the sale as an observer. A proxy may also be limited by the bidder in the total amount to spend on items in a multi-item auction. EBidding – electronic bidding, whereby a person may make a bid without being physically present at an auction (or where the entire auction is taking place on the Internet). They generally will call the auction using auction chant. Auctioneer – the person conducting the actual auction. Auction block – a raised platform on which the auctioneer shows the items to be auctioned; can also be slang for the auction itself. In an ascending open auction it is considered important to get at least a 50-percent increase in the bids from start to finish. In South Africa auctioneers can use their staff or any bidder to raise the price as long as its disclosed before the auction sale. (The bidder does not want to win this auction, but he or she wants to make sure to be invited to the next auction). Each type of auction has its specific qualities such as pricing accuracy and time required for preparing and conducting the auction. One of the most interesting bodies to look out for at auction is HM Customs & Excise who may be entering at auction various items seized from smugglers, fraudsters and racketeers. 46 A government auction is simply an auction held on behalf of a government body generally at a general sale. A: Closings generally occur within 30 days after an auction. Feel free to have your legal advisor review the contract prior to the auction date. A: It is very important for auction buyers to be educated and informed regarding the auction process. If a premium is being utilized, it will be detailed in the auction catalog. A: An auction where the property is being sold with a reserve means that the property is being sold subject to seller confirmation. If you are the highest bidder for a property, you will be required to make a bid deposit on auction day. A: If financing is required to complete a purchase, we suggest you arrange and pre-qualify with a lender prior to the auction date. See the information listed in your specific auction catalog to determine this. A: The speed of the marketing process is the number one reason people choose an auction sale. A starting bid comes from qualified bidders who attend the auction. However, it is important for you to be informed and prepared prior to auction day. The fact you are doing an auction does not change the market value of your property. On auction day, the market will determine what value is acceptable for your property. A part of that process is to help you decide if the auction process is best for you. There are great differences in the marketing of a voluntary, by-choice auction versus a distress auction. A. The best way to sell is to auction the property absolute. Ultimately, the auctioneer manages the auction process, and the broker gets paid without having much to do with the process. A. No. Our auction staff is composed of specialists who deal with this situation daily. A. For sellers, there are many advantages that are built into the auction process, but the number one reason is the speed of the marketing process. The auction begins promptly at the appointed time with the Auctioneers opening remarks. One common misconception about auction companies is that they compete with local Brokerages. Many of our friends attended the auction and all were impressed by how well it went. Thank you especially to David, Devon and Denise during and after the auction. From the very beginning they were there for us and available to help out and make the auction a success. I want to compliment your organization and each of your staff for the excellent job they did at the auction for Rental World. I am very satisfied with your professionalism and efforts in regards to the auction on my property. I had checked with three other auction companies prior to choosing your service. If you are not the winning bidder your un-cashed deposit check will be handed back to you before leaving the auction location. Your information is not sold or rented to anyone else and is only used to provide updates about the auction event. IF YOU DO NOT WIN THE AUCTION YOUR UNCASHED DEPOSIT CHECK IS HANDED BACK TO YOU AT THE AUCTION! At the end of the bidding the winning bidder will be required to sign the auction contracts and endorse the bid deposit check. All deposits are held by the auction staff during the bidding process. On auction day the bid deposit is required to prove you are qualified to complete the transaction. Sellers who enter their property in the auction are very motivated and willing to review any and all responsive bids placed prior to the auction. Yes you may bid before auction day it is becoming more and more popular especially if you really like a property and are afraid it might go beyond your reach on auction day. Ask the auction staff if there is a preferred lender for a particular auction event. Yes the financing procedure is basically the same for an auction as it is for any other property. In an auction it really does not matter where you open the bidding in many cases we open the bidding at the deposit amount. The second time a property does not sell at auction is when a seller is greedy and wants more than a property is worth. In this day & age most people have a mortgage against their home and simply do not have the cash on hand to payoff their home loan before auction day. Experience has shown that people who have inspected a property but cannot attend the auction for one reason or another have been great bidders. Bidding at auction is a legal and binding contract to purchase on the published terms and conditions. The Industry Standard auction process is designed to be simple, straightforward and very fair to all of the parties. Also remember, just as we wrote above, the auction process is not for everyone. The auction contract between Buyer and Seller usually commands a 30 day closing with time being of the essence. Meaning, the seller typically pays all or most of the out-of-pocket marketing expenses associated with your auction sale. Understand that the lender acquired the distressed property at the auction because no one bid higher than the default amount. Make sure there are no surprise claims pending against the home that you may have to deal with after the auction. Dealing with banks to loan you money for an auction home is not a fun situation. In California, you must pay in full at the auction steps. You didn’t expect to go to a bank and ask them for a mortgage to fund your auction purchase, did you? Pick out one week and go to the auction every morning. Lender Processing Services (LPS) explains that the number of foreclosures in the United States has steadily risen for five straight months in a row and that the current foreclosure inventory in the United States is about 7.7 times the historical average. Some auction houses allow a period for loan processing. Buyers typically pay a sales commission above the purchase price to the auction firm. Buyers arrive at the auction and register to bid, when preregistration isn’t required. Auction firms also sometimes require buyers to bring loan-qualification or bank-guarantee letters. Buyers register to bid prior to the day of the auction at some sales. Some sellers hope the auction process increases the final sales price when bidders compete for the property. Sellers contact an auction company directly, and sign the auction sales agreement, typically to avoid buyer negotiations. The prospective bidder may even bring an inspector with him in many cases to make sure of the condition of the property before attending the auction. The auctioneer will widely advertise the auction and hold open houses, so that any prospective bidders can make sure of the condition of the buildings before bidding at auction. The bank will usually have a representative at the auction to protect their interest. A court representative or professional auctioneer in many cases may conduct this type of auction. Determine what you’re willing to pay before the auction and don’t bid any higher. Remember that your bid at the auction is absolute; there is no backing out, there is no home inspection waiver. Drive by the listed auction properties located within those neighborhoods. Bidders also need to be aware that large auction firms, such as Williams & Williams and The National Auction Group, charge either a flat fee or percentage of the sale price for their services. The successful bidder will sign his check over to the auction company while losing bidders simply redeposit their checks. This is to show the auction firm there is a legitimate intent. Find out requirements – Contact the attorney or auctioneer to determine how much money you need to bring to the auction as this varies from state to state. The reasons for foreclosure and tax-forfeiture are often the same — owners fall into financial trouble because of job loss, a sudden and expensive medical crisis, unexpected property expenses, and other reasons. The best approach is to get as much information as possible before in the auction. However, if you attend a reserve sale and the lender takes title, then speak with the lender after the auction about an REO purchase. The auction company wants to be sure that you have the funds to close the transaction. Some bidders drive by the property just before the auction to ensure that its condition hasn’t changed since the disclosure papers were written. If the highest bid at the auction is insufficient, the lender then gets title to the property and holds it as a bank-owned (or REO) property. You can have an attorney do a title search for you if the auctioneer does not provide one, or you question the credibility of the auction company. Some auctioneers give out auction paddles or bid cards for bidders to use. Check with local realty offices to find out if they have listings for area houses up for auction. An attorney can help you find out all terms and outstanding debt attached to the property before the auction. You should not attempt it without an attorney’s help unless you have experience purchasing property at auction. Some properties may not allow tours before the auction is sold. Keep in mind many properties are at auction because the homeowner had financial troubles. If the auction allows financing, become pre-qualified before you start bidding. Foreclosure by judicial sale, more commonly known as judicial foreclosure, which is available in every state (and required in many), involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left. Even the same site can have different terms for different properties going to auction. Some states require proof of funds before the auction. The auction is conducted at 10 AM and all bidders must register before the auction in person at the public trustee office. With an auction property you will usually not get your earnest money back if you back out of the contract for any reason. Looking to buy? To a homeowner, these can be the most beautiful words in the world, especially in a market like this one where selling property the conventional way is often a prolonged pain in the patootie. Myth #1: All properties being sold via auction are foreclosures and/or in bad physical and financial condition. Commitment to Sell. Auctioning off a piece of land, real estate, rental property, and more can benefit both the buyer and the seller, depending on whether the auction is reserved or absolute. It’s just another day at the steps of the Maricopa County Courthouse located at 201 W. Jefferson St. in Phoenix, AZ. The third session of the trustee sale also known as the public auction starts at 2 p.m. About a dozen investors wearing shorts, t-shirts, tennis shoes, flip flops and baseball caps gather around the youthful-looking auctioneer seated at the corner of the outdoor courtyard of the Maricopa County Courthouse building. It can be an exciting and sometimes overwhelming process to find and purchase a home. Before a property can go to auction, it must be scheduled and advertised. An aggressive marketing program is critical to an auction’s success. An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. David and Denise Stutenkemper and their associates were extremely helpful to us when we had to sell my brothers home and personal property after his sudden death. Imagine selling everything in a house, for market price, within 4 hours. Note from Paula: This is a guest post from my friend Jason Hull, a financial planner, landlord, world traveler and West Point grad. If you’re in the market for a new home, foreclosed properties can be really appealing. Get our free weekly newsletter and MoneySchool: Our FREE 7-day course that will help you make immediate progress on the money goals you’re working toward right now. While this is unfortunate for those who lose their homes, the opportunity to purchase a home at a highly reduced rate is very attractive to prospective buyers. Getting a great deal on houses is a key to my real estate investment strategy. When you attend a RealtyTrust auction, you will know that the seller is truly committed to selling the property on sale day. Bidders are encouraged to conduct due diligence or do their homework, inspect the property, area, etc. Our goal is to provide buyers with a straight forward, uncomplicated and transparent service to help you prepare for an upcoming auction and make an informed decision. You will also notice our commitment to helping you evaluate a property and become an informed, confident bidder. If you see a property for sale in a RealtyTrust auction, you can act with confidence that it meets the high standards our buyers and bidders have come to expect. Bank property sales typically require a final review and acceptance by the bank’s managers. RealtyTrust’s sellers reserve the right to accept or reject any bid regardless of how that offer is made, whether or not it exceeds the reserve price and whether or not it is the highest bid offered. Once an opening bid is received or called out, the auction process begins and the bidding will advance above the opening bid in increments established by the auctioneer. If you want them to move, they will, after you convince them to do so. Which may simply be after a conversation, or after evicting them through the court if necessary. My DD was limited to a title search and a drive-by in most cases. As for inspections, most of the ones that I bought were occupied so there was no opportunity to see inside, much less conduct inspections. Probably most of the cities an at least half a dozen counties. If the title is particularly messy there could be instances where you would have to initiate a quiet title action to seek to perfect the title. It’s quite possible the title you receive will be just fine or easily correctable by paying whatever liens survived the trustees sale (which may or may not be a big deal). NA Onyido It’s not that you don’t GET clean title, you just don’t get a GUARANTEE of clean title. What kind of research and due diligence to you do as prep? I appreciate the info on the title insurance @ quitclaim deed….I personally like to stay away from the quitclaim deeds because I have little knowledge on them. In those cases, bidding requires the same level of due diligence (and title examination) as bidding on the courthouse steps. If you do plan to bid, most of the sales are cash (some allow financing and the listing will say so) and many don’t offer title insurance and are conveyed by quitclaim deed. Frances holds a Bachelor of Arts in social studies education from the University of Wyoming and a Juris Doctor from Baylor University Law School. Heather Frances has been writing professionally since 2005. While this gives sellers more control over the purchase price, prospective buyers may not invest much time into researching the property since they have no way to know whether they will actually get to purchase it even if they bid the highest price. The seller has a specified time, usually no more than 72 hours after the close of the auction, in which to decide whether he wants to accept that price for his property. The seller does not publish a minimum bid, though he may have a minimum in mind. At a reserve auction, or auction subject to confirmation, the highest bid is actually considered an offer so the seller gets to choose whether to accept or reject the winning” bid. However, if no one bids over $100,000, the property remains unsold. For example, if a seller thinks his property is worth $120,000 and he sets the minimum at $100,000, he is guaranteed to receive at least $100,000 as long as someone bids over that amount. This reduces the risk for the seller since the sales price is guaranteed to be above a certain set minimum. Typically, this type of auction creates the most response from the marketplace, so it is a popular style among sellers, banks and government agencies. In an absolute auction, the property is sold to the highest bidder no matter what price that highest bid is. This guarantees the property will sell, so there may be more excitement and participation from buyers. We prepare a complete bidders packet, provide a sellers disclosure, and as much pertinent information as possible. Each auction falls under separate terms and conditions, please read the terms and conditions of the property you may be interested in. We may sometimes advertise a property with a starting bid, if we do so then the property will be sold at that price or higher. If the terms state absolute, then the property will be sold at any price. If under the terms and conditions state to be sold under owner immediate confirmation, meaning there is a reserve on the property then the property is being offered with a reserve. At the time of closing we deliver the down payment to the closing company, and in turn they take this as part of the purchase price. This would be paid as part of the purchase price, at the time of closing. When utilizing a buyer’s premium it will be advertised under the terms and conditions of the sale. It is added on to the buyer’s price, for example, If you would pay $100,000, and there was a 3% buyers premium your total purchase price would be $103,000. The below banks are familiar with the properties and values of the properties we sell, they have a strong understanding of the market price for our properties in our selling area. The bank you are working will be able to assist you with the approximate value of the property we are selling, in doing this they can guide you through the max bid you can make, give you estimated closing costs, and determine your qualifications. We can assist in helping determine the market value of a property you are interested in bidding on. Please take the time to ask us our evaluation and thoughts on the market value of a property we our selling. A property is only worth what a buyer is willing to purchase a property for, and what a seller is willing to sell their property for…hence the selling price. Please fill out the registration form, if you are the high bidder you will be required to wire, or send a check as a down payment the next business day, after bidding is completed and you are notified as a high bidder, approved by the seller. We have made it very easy with a link to become preapproved. It won’t take long to recognize whether they know what they are talking about. If you don’t already have a relationship with a professional auctioneer, interview three or four before creating a relationship. However, if the reserve price is not met, the interest generated by the online event should still allow the agent or broker to facilitate an expedited sale. This creates traction with prospective buyers and initiates a negotiation. In some cases, someone may even make a pre-emptive offer without ever visiting the property in person. The allotted bidding time is often extended as long as competitive bids are coming in. Virtual tours of the properties are always available online. Once each bidder has been given a bidder identifier or bid number, they may observe the auction action or participate from any remote location where the internet is available. Once the auctioneer has received the deposit (either by overnight funds or wire transfer), a given bidder is qualified to bid. Then, depending on the terms and conditions of the auction, a deposit amount will be presented to the bidders. Having a well-trained professional on-site is reassuring to prospective bidders and serves as an important part of the sales process. To make up the difference on the remaining balance, the seller cannot offer the property absolute” without fear of litigation. In most cases, buyers and sellers will be able to download a complete due-diligence package from the auctioneer’s website. In regard to property inspections, the due-diligence process between the online auction and a conventional real-estate offering is largely the same. Simply open your mind to seeing and doing things different, for the benefit of both your sellers and, ultimately, yourself. Depending on how long you have worked in this industry, the word auction” may bring a wide variety of preconceived notions to mind, but don’t let it alarm you. Please remember that these platforms are sales and marketing tools that are readily available to all brokers and agents today. Take a few moments and view the reference material we have provided for you in the LEARNING CENTER section of this website. If they become the successful bidder, this payment is non- refundable. Potential buyers must register to bid with a certified bank check. While some professionals may observe an auction and think it is a simple process, most lack the skill and experience to offer your property and obtain top dollar. There is one chance for success and you deserve the best. And when considering auctioning your real estate, the same effort should go into the decisions you make concerning the company you choose. When shopping for services, it’s important to do research to get the best. The Department of the Treasury has designated CWS Asset Management & Sales (CWSAMS) as the prime contractor responsible for the maintenance and sale of seized and forfeited real property. Most property is seized due to smuggling, drug trafficking, money laundering, credit card fraud, food stamp fraud, mail fraud or other illegal activity. Employees of the Department of Treasury and members of their immediate family are prohibited from bidding on any real property. A real property sales contract may be cancelled by the Government after review of records. Forfeited real property will not be sold to the defendant or person(s) acting as his/her agent. You must be over 18 years old and cannot be the party or agent of the party from whom the property was seized. If you do have a broker, all arrangements, including any fees and broker commissions, are strictly between you and the broker. A Special Warranty Deed requires the Government to defend the title against defects or clouds arising from the forfeiture process and to indemnify the buyer. The type of deed will be identified in the Terms of Sale. Sometimes, title is conveyed with Special Warranty Deed or Quit Claim Deed. Back taxes, liens and/or other encumbrances will be paid by the Government. Unless stated otherwise, a clear title will be conveyed via a Government Deed. Failure to obtain financing does not relieve you of your obligation to close on the property. You are strongly encouraged to investigate and secure financing arrangements, if required, prior to attendance. Title of the property will remain with the Government and you will forfeit any deposits you made. If you cannot make deposits or final payments within the time frames specified in the Terms of Sale, you will forfeit any right and interest in the property. A link to the Terms of Sale can be found on each property’s webpage. Please check the Terms of Sale for the specific instructions regarding payment. Forms of payment that are not accepted include: Personal or business checks, money orders, cash, credit cards, bank letters, or letters of credit. Cashier’s or Certified checks made payable to CWS Marketing Group, Inc are the only form of payment accepted. Closing costs including, without limitation, transfer taxes, documentary stamps, recording fees, and escrow fees will be paid by the Buyer and Seller in accordance with the customs of the county in which the property is located, unless stated otherwise in the individual Terms and Conditions of Sale. Only the seller may, at its discretion, exceed closing beyond 30 calendar days. Closing is usually required within 30 calendar days of sale or sooner. You can find the Terms of Sale linked to the description of each real property on the treasury website. The Terms of Sale are the specific guidelines and rules that each bidder is required to follow. In the event the high bid does not reach the minimum/reserve bid, the Government may open negotiations with the high bidder. Occasionally the Government will establish a minimum/reserve bid, this minimum/reserve bid is not released to the public. However, the Government reserves the right to accept or reject any and all bids. Generally, the Government does not place a minimum/reserve bid on items. We do not have the capability to refund a portion of a deposit check. However, if you do not win all of them, you will need to leave that check as an initial payment(s) toward the final price of the property or properties. You have a choice of having multiple checks or one check totaling the sum of the deposits needed. In most cases, they either void” the cashier’s check or stamp it with not used for the intended purpose” and will re-deposit the money in your account. You should check with your bank on their procedures for re-depositing checks. If you are not the winning bidder, we do not collect your deposit. Personal or business checks, money orders, cash, credit cards, bank letters, or letters of credit will not be accepted. The successful bidder’s deposit will be retained as the initial payment for the property. If you are not the high bidder or second high bidder, we do not collect your deposit. The Terms of Sale will explain deposit requirements for each property. In most cases, the second high bidder will also be required to make a deposit. Immediately after the bidding, the high bidder will be required to provide their earnest money deposit check. Cashier’s checks must be made payable to: CWS Marketing Group, Inc. To qualify to bid, photo identification and a cashier’s check deposit (amount varies) must be presented at registration. The final price of auctioned properties depends on public interest. In completing the registration process, the bidder agrees to comply with all electronic deposit requirements and acknowledges full and complete understanding of all Terms and Conditions. Persons wishing to participate in electronic bidding are required to register online at the designated website. At their own expense, potential bidders may have property inspectors examine the property during regularly scheduled open houses. Absolutely no access to property is allowed without prior authorization. Property will be available for inspection at the times specified. Failure to inspect property shall not constitute cause for cancellation of sale. The bidder is invited, urged, and cautioned to inspect the property prior to submitting a bid. To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader® You are leaving the U.S. Department of the Treasury public web site. If you need any help or clarification, ask a bid assistant. Failure to do so or bidder misunderstanding will not be reason enough to cancel a sale. This creates a delay of several weeks before you may take possession of the property. People may not be who they appear to be, and their purpose could be to drive up the bidding to a higher level than expected, so as to knock out the less experienced bidders. Ultimately, you don’t want to get trapped into outbidding people with more experience if the bidding gets really intense. That is where the research into properties that could meet your needs for price and other considerations will come in handy. Realistically, you go into the bidding process knowing the maximum amount you can afford to spend, always with the expectation you could be outbid. In a bidding war, you could expect the final successful bid to be near or at the listed price of the property. If you are participating in a large auction, you may have to go through the process of getting a bidding card and then be prepared to wave your card to the auctioneer to signal your bid amount during the actual bidding time. Inspection helps you determine the condition of the property prior to purchase. That would be critical for buyers considering a typical as-is bid on a distressed property. The best part about the bidding process is the actual competition between bidders, which occurs rapidly, unless bids will be submitted and considered at a later time. At a large auction, expect the auctioneer to collect a flat fee for his or her services or simply a percentage of the transaction. Ask the person offering the auction, either the auctioneer or the seller’s attorney. For example, you might have to bring a certified check with a minimum amount of $5,000 or a similar sum to demonstrate your qualification as a legitimate buyer. Watching the game players as they perform their roles could help you feel more prepared as a prospective buyer of a foreclosed property. It’s always up to you to feel ready to attend, armed with your research. An auction could take place at your local courthouse, in a rented space for sales of multiple properties, or at the property location itself. A good auctioneer will make sure all potential bidders are clear about what’s going on. Don’t be afraid to speak up if you are uncertain about what’s happening. Also, the sale does not depend on things like inspections, financing, appraisals, etc since the property is sold as is” with no contingencies. First, the property will be sold at a specific time instead of waiting days, weeks, or months for a buyer to make an offer. Some auctioneers also accept sealed bids in advance, telephone, smartphone and Internet bids, which Longly at the auctioneers association says works well for highly desirable homes in attractive settings. These ballroom” sales can attract hundreds of potential bidders who get the fever and bid until they win a property. Some auctioneers believe they get better prices if they group houses together and sell them off site. The check will be returned to non-winning bidders and forfeited by the high bidder if he is unable to close. Other auction companies – usually those that deal with less-pricey properties – simply ask registering bidders for a certified check equal to about 10 percent of the expected sale price. This ensures that a buyer can actually complete the sale. Some auction companies require that potential bidders present a letter of credit from their bank or a statement from a lender certifying that they are credit-worthy up to a given level. Before setting a reserve, make sure you understand what the no-sale fee is. That’s the price you pay the auctioneer for changing your mind and can be just as much as the price of selling the property. They may not like it, but that’s what it is,” says Bynum of Williams & Williams. With an auction, whether there’s a reserve or not, people can have confidence that the property is selling for what buyers think it’s worth. Setting a reserve gives sellers an option and is fairer in an unstable sales environment, believes Jim Tomaszewski, co-owner of JM Auction Services in Adrian, Mich. Ohio Auctioneer Rose prefers an auction premium because it places the burden of payment on the buyer. Chris Longly, spokesman for the National Auctioneers Association, says some auctioneers believe the auction premium approach discourages bidders. And some split their commission between the buyer and the seller – for instance, the buyer pays a 5 percent auction premium and the seller pays a 5 percent commission. Some auctioneers charge the seller between 6 percent and 10 percent of the sales price as a commission. There are many legitimate ways to handle auction fundamentals, so find an auctioneer who does business in a way that makes you feel comfortable. It’s also a good idea to check with the Better Business Bureau, or in 34 states there’s a licensing process and a way for the public to register a complaint against license holders. The National Auctioneers Association requires members to adhere to a code of ethics. Additional auction training can’t hurt – certified auctioneers have completed a three-year training program. Find auctioneers through the National Auctioneers Association, which in December launched the first auction multiple listing service as well as an auctioneer search engine. Some national companies have extensive databases of potential buyers and use them to reach out aggressively. A locally based auctioneer may understand your market better than a national company – but not necessarily. But you also probably don’t want an auction company that mostly does multi-million dollar mansions if you own a suburban townhouse. Obviously, if you’re selling a house, you don’t want an auctioneer whose specialty is cattle or antiques. Choosing the right auctioneer is the first and most important step. The sale itself is completed in a matter of minutes and closing is within 30 to 45 days. About 11 percent of the time, auctioned homes sell for more than what the seller had previously listed the home for in a conventional sale, says G.T. Bynum, marketing director for Williams & Williams, one of the nation’s largest auction companies with operations in all 50 states. In 2007, it made $58.4 billion in revenues, up 39 percent from 2003, according to the National Auctioneers Association. If interested, registered bidders are required to submit a refundable cashier’s or certified check before the auction: $25,000 for Alm’s Buckhead condo and $50,000 for Perlmutter’s Alpharetta home. Former Coca-Cola Chief Executive Officer John Alm, who is also using Grand Estates to sell his penthouse condominium in Atlanta’s upscale Buckhead neighborhood Tuesday, agrees with Perlmutter. He said the company’s aggressive marketing campaign for the auction, which has included billboards, thousands of brochures and ads in major publications, has garnered nearly 150 phone calls from interested buyers. At an event this month, Grand Estates sold a seven-bedroom waterfront home on Georgia’s Lake Oconee for $1.83 million, the most successful sale for a multimillion-dollar home in the area since 2007, according to listing records. And the number of private sellers Grand Estates has represented has grown, too, from 15 in 2005 to 25 in 2009. But within the past year, Kirk’s client list has grown to include hedge fund companies and banks working with sellers in lieu of foreclosure, something she doesn’t expect to continue once the housing market recovers. Stacy Kirk founded Grand Estates in 1999 with her mother, who, at the time, was trying to sell her own luxury home on Lake Norman, about 20 miles north of Charlotte. Perlmutter, 50, and his wife are typical multiproperty-owning clients who are looking to make a lifestyle change upon becoming empty-nesters. The Charlotte, North Carolina-based company specializes in absolute auctions, which require no set starting bid and award multimillion-dollar homes to the highest bidder. Grand Estates Auction Co. has seen its business increase and evolve in the past two years as homeowners looking to sell are forced to adjust to the sluggish housing market. HUD bids include inspection and financing contingencies and smaller deposits. HUD gives home buyers priority over investors, will pay closing costs, and HUD homes are priced to sell quickly. Many are listed in the MLS with a zero price, increasing exposure to buyers in all price ranges. If the appraisal comes in low or any repairs are required or you fail to qualify, you may lose your larger than normal deposit without the protection of a financing contingency. The ideal situation for a buyer is to have no competing offers for maximum bargaining power. A small window to bid only for attendees can reduce your competition. A great bargain outweighs all other considerations and you can’t get one unless you are there, informed and prepared. Others have an undisclosed minimum, sometimes called a reserve- this means you could win the live auction, but not get the property because the winning bid is below the minimum. If you have questions, or would like us to schedule a consultation or auction, please give me a call. With our auction, the seller determines what the buyer will pay, and the terms and ads are written accordingly. In a traditional closing the buyer may ask for you to pay all their closing cost. There are no contracts that can block a higher amount offer. Interested parties are bidding against other prospective buyers. Selling at auction promotes competitive bidding, and there is no juggling back and forth with counter offers or contingencies. There have been several occasions where we have sold property in excess of the appraised value or asking price. The seller determines the minimum, and it is kept confidential. The seller must agree upfront how the property will be advertised. The seller knows exactly when their property is scheduled to be sold and they have complete control with the option to accept or reject any & all offers. This means there is no waiting for a potential buyer to make an offer. Also keep in mind that homes and offices are much more helpful to the economy when they are occupied rather than vacant. Truth: Many property owners specifically choose the auction method of sale for its accelerated marketing process and 30-45 day closing, seeing it as an advantageous way to quickly liquidate an unwanted property. For the few that don’t, owners can be rest assured that their property has been promoted to the fullest through a detailed accelerated marketing process, often bringing in offers even after the auction date. Truth: While auction companies and private auctioneers do receive payment to cover costs and possible property appraisals, the bulk of their fee goes toward the accelerated marketing process. The property will be sold to the highest bidder regardless of price! There are a variety of situations where an owner would choose to have their attorney arrange the sale of their property for them. An attorney is representing the owner of the property. Free and clear title is also guaranteed, but no ratification is required by the bankruptcy court. If a dispute arises between two or more bidders, the auctioneer shall decide in favor of one of the bidders, or immediately re-offer the property. Any bid that is merely a nominal or fractional advance may be rejected by the auctioneer if in his judgement it may affect the sale injuriously. Bidding increments are made in amounts acceptable to the auctioneer, who may set a minimum bidding increment as the sale progresses. Bids are generally made either orally or by raising a hand. At the conclusion of the announcement and question period, the auctioneer will solicit bids for the property. Before the bidding starts, the auctioneer will make important announcements regarding the property and your obligations as a purchaser. You will need to show the auctioneer that you have the required deposit which qualifies you as a bidder. See the Inspection section on this page for more details. If you do not obtain the financing within the specified time for settlement, you will be in default of your contract of sale. If the bank must take longer than the specified time to complete the loan, the sellers may extend settlement for a short period if you can provide proof of a loan commitment. If you plan to use a mortgage to purchase the property, we recommend that you apply for the loan immediately. It is the purchaser’s responsibility to obtain financing. See our Financing Page for a list of auction-oriented lenders. We will be happy to recommend sources of financing and often provide a link on the property web page. For specific rates, see the Maryland State Department of Assessments and Taxation web site for Property Tax information, and the appropriate Circuit Court Clerk’s office for the Recordation and Transfer Tax information. As the purchaser, you will pay all of the settlement expenses, including title fees and recording costs. We recommend that you obtain a fire and/or liability insurance binder on the property immediately as of the date of sale. The Terms Of Sale will outline your specific responsibility. You may be required to pay interest on the amount of the purchase price, less the amount of your deposit, from the date of the sale to the date you settle for the property. You may be responsible for the expenses of owning the property as of the date of sale or as of the date of settlement, including taxes, utility costs and insurance. Otherwise, you are free to take the check back since it is in your name. If you are the winning bidder, you will endorse the check to the auctioneers. As a bidder, your certified or cashier’s check should be made payable to yourself. Properties are often available to view by appointment with the auctioneer. You are welcome to bring someone with you to the auction, such as a contractor or home inspector. We will provide as much information as is possible in each situation. Failure to comply with any of the terms of sale may cause you to forfeit your deposit and be responsible for the expenses to resell the property, as well as any deficiency incurred. If you are having a bit of trouble understanding the auction chant, plan to listen for a few minutes and get a feel for it before you jump in and begin bidding. The auctioneer will determine the increments of bidding. Comments our editors find particularly useful or relevant are displayed in Top Comments, as are comments by users with these badges: Replies to those posts appear here, as well as posts by staff writers. In some cases, contributors are sources or experts quoted in a story. Post contributors aren’t staff, but may write articles or columns. SuperFan badge holders consistently post smart, timely comments about Washington area sports and teams. In an auction, your buyer’s premium will be the same whether you are represented by an agent realtor or not, so you might want to at least ask a broker to help you determine the home’s value. That buyer’s premium means that the buyer pays all of the broker and marketing fees. The buyers will forfeit their their deposit to the seller if they do not close. It doesn’t matter if the home inspector finds a major deficiency. It doesn’t matter if the buyer fails to get financing. And that deposit will be forfeited if the buyer fails to close for any reason. The buyer is required to put up a 10 percent deposit right away. After the gavel falls, all the leverage goes to the seller. I remember going to one auction where a property was bid up to $85,000 when an almost identical property right around the corner was listed on the MLS for $65,000. They’ve gone to the bank to get certified funds or large amounts of cash. Auctioneers’ job is to generate as much excitement about a property as possible. Even with the math that I did beforehand I still bid slightly higher than my max number and I still didn’t win. When the price starts escalating then they are forced to do quick calculations in their head while under pressure and in the middle of all the excitement. But I settled on what I figured the home would be worth after a good remodeling and from that I determined how much I could pay for the home. As usual, the comparable sales were spread out over a wide price range. We pulled the comparable sales and re-pulled the comparable sales. If you can, then you probably have an idea of where I’m going. For those of you who have sold or bought a home recently, could you imagine having 100 bidders competing for your home? But I was hoping the crowds would be smaller this time since it was so close to Christmas. Sign up to follow, and we’ll e-mail you free updates as they’re published. Be the first to know about new stories from PowerPost. In most cases, your closing will be scheduled within 30 days. Ultimately, there is no substitute for viewing the property. This packet contains many more helpful details, such as maps, demographics, zoning information, seller disclosure, inspection and floor plans. A property brochure is also available to view online or you may request one be mailed to your address. This can be found on the Auction property page with full details about the location, size, acreage and many other aspects of the property. We provide a staff of professional auctioneers and bid assistants to help you in any way throughout the bidding and buying process. So if you are the successful bidder, you will know that your price is fair market value. However, with an auction, the visible market value is established. If you are the successful bidder, you will be required to promptly meet with the auctioneer to sign the sales contract and finalize your deposit. Usually a small wave of your hand and eye contact will let the auctioneer know of your bid. Once the seller releases the property, it will then be sold to the highest bidder. In the bidding process to allow time for the seller to make the determination whether or not to release the property. If the bidding reaches or exceeds the reserve price, it is simply sold to the highest bidder. The auctioneer will clearly state when the property is sold that it is Subject to Confirmation”. If the high bid does not reach an undisclosed reserve price, the seller (usually a bank or financial institution) will have two weeks to confirm their acceptance of the sale. B. Subject To Confirmation” – If the property is advertised as being sold Subject to Confirmation” the property will be put up and sold without a recess to the high bidder. The bidding process starts at the published number and the property is sold to the highest bidder usually within ten minutes or less and without any recess in the bidding process. This number may not have much or any correlation to the market value which may be much higher. For example: This property selling to the highest bidder over $ (some number)” When the property is advertised this way the property will be sold to the highest bidder above the published number. A. Published Reserve” – If we advertise and promote the property with a published reserve – The property will be sold to the highest bidder over that number. You will need a personal check or cash to pay any additional deposit money over the published required deposit up to 10% of the final purchase price. A minimum10% of purchase price or the published amount (whichever is greater) total deposit is required for the successful buyer. Bring cash or a bank cashier’s check made payable to yourself in the required deposit amount. (Many properties are sold in 10-15 minutes from published time. This will get you a bidder packet of info on the property including the sales contract and other relevant data. We have experience with this system and are ready to use it to get the most out of your property. This method has proven results that the Multi-Par system will increase the final selling price of property. Also has Multi-Par capabilities, which can split large properties into smaller parcels. It is this kind of personal attention that makes us a great choice when selecting your auctioneer. We have the experience and expertise to turn homes, farms, commercial and retail properties into attractive marketable assets. Team will listen to your goals and expectations for selling your property, and develop an extensive marketing plan geared towards attracting interested buyers to the auction. We have the experience and expertise to turn homes, farms, commercial and retail properties into marketable assets. Has sold thousands of properties and assets for clients throughout New England and beyond. The results are impossible to predict; however, we can assure you of the best possible effort in achieving the highest return for the Seller. The Auction Method is an efficient and many times a required tool in recovering value for assets in the jurisdiction of bankruptcy and other courts. The owner agrees to sell above a pre-determined price, but that figure is confidential between the seller and the auctioneer. The minimum must be low enough to serve as an enticement, yet high enough to satisfy the seller in the event that little or no advancement is made. This approach offers protection to the seller, but in essence a minimum bid more or less expresses that the seller will be satisfied with the minimum bid. Property to be advertised and sold to the highest bidder above a pre-determined and advertised minimum bid. Property to be advertised and sold to the highest bidder regardless of price. PMI has developed a specialized mailing list targeting potential buyers and sellers. Licensed and bonded auctioneers in the states of New Hampshire, Maine, Massachusetts and Vermont, with affiliates in most other states. Market-based values are established, and few defaults are experienced in a properly structured auction. It allows Sellers to establish the time frame and set the conditions of sale. They ranged in price from $10,000 single lots to multi-million dollar properties. He will not have to worry about emergencies because purchasing and closing dates are known to him beforehand. Therefore it is sold with no emergency and the seller gains from it. Potential buyers receive enough time to make a decision on whether to make a bid or not after having a good look at the property to be auctioned. In contrast to conventional sales processes where it is mandatory for the property owner to make necessary improvements and renovations to get a fair price, these properties are auctioned on as-is-where-is basis. He is able to sell the property according to the terms and conditions set by him. Sellers are informed about the auction date before hand after the auctioneer is ensured that the sellers/bidders are able to meet the preset terms and conditions laid down by him. After the promotion or advertisement campaign is launched, the auction event takes place within a few weeks on completion of official formalities. If possible the consignment should be assigned to a reputed advertising agency to make the ad campaign more attractive. The auction event should be advertised in print and audio visual media to have a greater impact. It is to be ensured that a considerable sum is paid by the buyer as a down payment which is non refundable and both parties are willing to close the deal as soon as possible. The potential buyers of the property are then registered after it is ensured that they are financially qualified. Onus rests on the auctioneer to create demand or an urge to make a bid in the buyers/bidders mind and to attract the attention of the potential buyers/bidders. This transformation has occurred because the earlier believe that a seller will not take the risk of auctioning his property at a lesser price than its market value has changed. When a property is offered for auctioned, a sense of urgency arises to bring the interested parties together on a particular day and the sales process creates a sales price through competitive bidding among the participating parties. The auctioneer should also try to avoid bearing high carrying costs associated with the property. The time of auctioning should be perfect, when the market is soaring high. With a strong equity position in the property, he will save the cost of paying a sales commission. To get a fair price, his equity position in the auctioned property should be strong. It is important for a bidder to find out everything he can about a property before placing a bid. This may require a bid deposit or some other form of registration. However, an auction requires careful monitoring and it is important to stay involved and informed about all offers made on your property, just as if you were selling a property through another type of market. As a buyer, you can enter a market where you are likely to encounter many sellers who are ready and willing to commit to sell their property quickly and fairly. However, whether buying or selling in an auction, it is important to know the market so that the transaction is favorable to all parties involved. If you are an investor trying to sell your property quickly and do not necessarily care for what price it sells, auctioning it off may be the avenue you wish to take. In reality, this is often untrue – a legitimate auction is not arranged to swindle an informed buyer, and can be an excellent way to sell a property quickly and efficiently, regardless of the state of the property. There is a form to do so and it must be completed and sent to our office. Please note, you must register as a buyer’s broker at least 24 hours in advance. We pay brokers for referrals, if they are the listing agent, as well as brokers who represent a buyer at an auction. Develops your own market niche – able to offer new products and services other agents aren’t providing. To ascertain the amount and structure of any commissions to be offered, refer to the particular terms and conditions of the auction contract. If an agent brings a buyer to an auction, and that buyer purchases property, the agent can receive a commission. He is able to make market comparisons quickly and easily. The buyer sees many offerings in the same place at the same time. The buyer can withdraw from the bidding at any time until the gavel falls. The buyer feels comfortable with the purchase knowing that there is a contending bid just one increment under the purchase price. The buyer knows he is getting the property at a fair market price. The buyer knows the seller is fully committed to sell. This includes location, condition and surrounding properties. The amount of the fee depends on the size of the property and the size of the necessary advertising campaign. When a seller signs our service contract there is a pre-determined advertising fee. In the case that free and clear title cannot be delivered by the seller, the buyer will be refunded his/her deposit. Our service contract states that the seller must be able to deliver free and clear title to the property without any liens or judgments. If the rare failure to close occurs, the auction seller can turn to the next highest bidders, who demonstrated their willingness to pay nearly as much as the buyer who failed to close. Bank REO, you will typically receive the property with a clean title. Priority of liens is determined by the date of recording. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. At auction, an opening bid on the property is set by the foreclosing lender. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The time and location of this sale are designated in the Notice of Sale. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period. In addition, the Notice of Sale is recorded at the County Recorder’s Office in the county where the property is located. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). If you are interested in the available properties for auction, explore our Properties for Sale page. If you are interested in selling your property with an auction, contact us today to learn how we can help you! We set the highest standards for honesty, integrity, and professionalism for buyers and sellers alike. The marketable value of the property is determined by a competition between bidders to establish the final price of the property. The property will be shown two weeks prior to the sale, one week prior to the sale and the day of the sale in most cases. All potential bidders are required to be preapproved so a timely closing may occur. A buyer’s premium is used to offset the expenses incurred in the process of having the sale. For all auctions, a buyer’s premium is added to the final sale price which is usually a percentage of approximately 3 to 10 percent of the sale price. The seller has the ability to accept or decline any or all bids or to withdraw the property before the completion of the sale by the auctioneer. This gives the seller a guarantee of the minimum he or she will be able to make off the property sale. Let’s say a seller doesn’t want his or her home to sell for less than $200,000. A reserved auction benefits the seller by allowing them choose the bottom dollar they want their property to sell for as a reserve. After The Auctioneer And Bid Assistants Are Positive That The Highest Possible Price Has Been Reached, The Auctioneer Closes The Bidding And The Property Is Sold. Nothing Can Better Reinforce The Value Of Your Property In A Bidder’s Mind Than To See Someone Else Increasing The Bid. Bidders Are Placed In A Comfortable, Yet Competitive Environment Where They Must Compete Against One Another, The Psychological Effect Of This Can Not Be Found In Any Other Sales Method. At Powell Auction, Our Marketing Department Will Provide All The Necessary Research And Materials So That Bidders Will Have Access To Any Information They Need To Bid With Confidence. The Electricity In The Atmosphere Breeds That Excitement And Increase The Competitive Nature Of The Bidder. Because Of These Results Our Clients Return Time After Time. It’s The Only Method Of Selling Where The Price Is Always Negotiated Upward Instead Of Downward. Along With Providing Maximum Exposure For Your Property & Makes The Sell Of Your Property Quickly. The Auction Method, Once Viewed As A Last Resort To Sell Distressed Property Is Now A Cutting Edge Marketing Method Which Offers Many Advantages To The Seller. Our Time Tested Methods Have Proven To Be Consistently Successful. A Plan Of Action Is Tailored To Meet The Specific Needs Of Each Individual Client. Powell Auction Wants To Earn Your Trust, Your Respect, Your Friendship, And Your Business. And the Buyer loses his down payment if unable to complete the contract terms. It will cost you time and money to move-in or rent out. Call me at (480) 650-0075 and I will walk you through the process. It can be held at the trustee office or at the courthouse in Jefferson for Maricopa county properties. Cashier’s Check is good made out to yourself or as instructed by auctioneer. Feel free to let me know if there is any topic you would like me to discuss. Thank you Winona for reading my blog and for your encouraging comments. It takes time and extensive research to compile a full list on your own. There is a partial list available to the public from the county. I’ll make sure to bookmark it and return to read more of your useful information. I’m glad that you find my blog valuable and informative. Thank you for the nice words and for sharing my website with others. I’ll definitely digg it and for my part recommend to my friends. If you decide to stay, he/she could begin an eviction process against you. He/she has the right to give you notice to vacate the premises. Unfortunately, this is not the first time I heard of such an event. You may email me directly at MariaHassRealEstate@ if you need more assistance. If you need a hard money lender contact Les Gin at 602.882.8849. You may contact Jameson Van Ness of at 480.560.5757 and ask about their service. Very good information, do you know of a bidding service that will send bid lists out day before auctions, would sign contract with bidding service. It will take a lot of time, patience and commitment to get it done. If you would like to do it on your own, you could go to the county to ask for a partial list and call the different trustee offices to get their partial list. You will have to contact any of the bidding companies. Once you are a successful bidder on a property, the bidding company will release the check and remaining balance to follow to the Maricopa county. The bidding company will deposit your check in their trust account. If you are hiring a bidding service to bid for you, make the check out to the bidding service. If you are bidding for yourself, make the check out to your name. This is what I do with my short sales if I’m getting no where and it has given me results. Contact a supervisor or the CEO of the bank if you really want to stay in your home ASAP. I am not certain if you are referring to a loan modification as the restructuring plan. What if the bank clamed to be sending a restrucuring plan to stop a forclosere, but never fallowed throw. I have done everything and called every number I could to try and stop this… No luck! We have done nothing but call both and gotten the run around. Trustee do you mean Bank of America they are my mortgage company and the lawyers that are auction saling the home is recontrust. Postponements can be done just minutes before the sale. Your Realtor should be able to access this information. What if I am a property owner of one of these auction sales that is schedule for today at noon and I have a short sale offer that was waiting for approval yet did not get it in time from the nogotionator so that this could be postponed. Bidding at the courthouse is more complicated than it looks. They will simplify things for you and manage your expectations. If you have a lot of time in your hands to do a thorough research on the property and don’t mind the frustration of being overbid by others, then you may venture into it. Otherwise, leave it to the pros. My husband and I have been considering purchasing our vacation home through trustee auction and have been reviewing the list of foreclosed homes over the last month. I got a home trustte sale awesome deal had 10.000 cashier check but i also got pre qualified for loan. Bank owned homes is certainly a safer alternative and you do have time to have a title insurance policy in place and professional inspections done prior to actually having to put cash on the line. Is is strongly advised to have professional representation to minimize any risks that is associated with a trustee auction. If the seller was in 2nd position, you could end up the owner of a home that still has a large mortgage lien! As far as I know, FHA loan will not approve of this kind of a deal. Hi Maria: I was reading the information on bank-owned properties, short sales. If you would like to look at bank-owned properties, short-sales or regular sales, I will be more than happy to assist you. You may begin by checking out or by phone at 480.560.5757 or email azforeclosurelist@ Ask for Jameson and be sure to pass on my name – Maria Hass. A buyer can purchase a home quickly (within 48 hours) at a trustee sale. There is a bigger risk involved in purchasing homes at the trustee sale that may cost you sleepless nights. As a buyer, you are able to see the condition of the home and also inspect the home prior to closing a deal. Once a home is bank-owned, banks are more desperate to get rid of the home because they have held the property for so long (at least nine months without seeing a penny). In my opinion, buying an Bank-owned property is a better way to go. It is less complicated, easier and can offer you bigger savings. If you are not able to pay in full within the timeframe given, you will lose your $10,000 cashiers check and may be barred from future participation in the public auction. The remaining balance is due no later than 5 p.m. the next business day. There is an average of 400 homes listed for auction everyday and about 96% of them end up as REOs/bank-owned. The reason for the few sales is the high starting bids. That would mean that 96% of the homes went back to the bank. Out of 200 homes auctioned at the 10 a.m. and 12 noon sessions, eight of them actually sold. A majority of the bidders are wholesale investors bidding for their company or bidding for a client. You may also not have the opportunity to inspect the property and instead have to rely on photos and printed descriptions. Simple online searches for REO properties” or foreclosures” will result in a variety of online property resources and listings. Many foreclosed homes are listed for sale the same way as traditional homes. Foreclosed homes can vary from a regular home purchase, and you will want to research all loan products available for this type of transaction, including traditional loan products or an FHA 203(k) Renovation Loan (a mortgage that provides the purchase price plus funds for renovation by financing the as improved” value of the home). The REO market offers buyers a unique opportunity to invest in a variety of properties in a diverse range of conditions and price ranges. In addition, a prequalified status shows you are not just browsing, which in turn makes you more attractive to a seller. If you decide to move forward with a purchase 1 , getting prequalified gives you the advantage of being better prepared to make an offer. You will want to make sure the costs for your mortgage, property taxes and insurance are typically no more than 36% of your income before taxes and other deductions. Before you start looking at foreclosed homes, you will need to determine how much home you can comfortably afford. Earnest money is a good faith” deposit demonstrating the buyer’s interest in the property and may be an indicator of how much money will be deposited as a down payment. These out-of-pocket expenses may include lender required documentation such as an appraisal or home inspection and bank-required minimum earnest money. As a result, the bank is often unable to verify the condition of the property or complete a Seller’s Disclosure. Given that the bank has not maintained or had first-hand knowledge of the foreclosed home prior to acquisition, there may be no record of property repairs or maintenance that would assess the true property condition. You will want to submit a fair and reasonable offer, as most banks will list properties at a fair price. Pricing for a foreclosed home is typically set at market value in an effort to move the property quickly. In some cases, an investor may own the property and will have to provide approval as well. An REO property is owned by the lender as a result of the previous owner defaulting on the loan. We stay fully involved as a liaison between bidder and seller, and assist with any details that guide the sale to a smooth closing. A Father Time® auction is a thoroughly professional and unique business event, where no detail is left to chance. Today’s buyers are just getting up the nerve to throw their hat into a market that has been unprecedented in volatility. Some will go out of their way to damage the property before leaving it. That’s just the reality of buying distressed property. This means there are no warranties or guarantees, nor will you be able to make any repair requests. In closing, I’d like to reiterate a point we discussed earlier. Most bidding wars are based on a combination of inexperience and ego among the bidders. But the starting price will probably still be below the full market value of the home. If the home does not have a recent appraisal, the starting price is normally based on the amount owed to the lender. If the home has been appraised recently, the starting price will probably be a certain percentage of the appraised value (two-thirds, 75 percent, etc.). This will vary from one company to the next, so find out the rules and payment terms in advance. You must register as a bidder so you can receive a bidder number. By this time, you should already know how much you’re willing to pay for a certain property. The property will likely be sold as-is, with no warrantees of any kind. In most cases, the bidding will start at a certain percentage of the appraised value (such as two-thirds of the appraisal amount). These companies usually have photos and additional details on their websites, and they generally encourage walk-through inspections prior to attending the auction. Though you might get more information about the properties for sale when using one of the private companies. Afterward, a deed will be given to the successful bidder, who now becomes the homeowner. But they’re not always conducted by government officials. Their number-one objective is to sell the home as fast as possible. If they happen to make a profit through the auction, they’d certainly be happy about it. But it’s not their primary goal. With no contingencies and a sizable non-refundable deposit on the line, auction buyers are qualified and highly incentivized to complete the transaction. The Broker-Auctioneer will offer full disclosure to all interested parties in accordance with the law. A: Though we are selling as is,” we must abide by applicable state and federal laws. We will recommend the strategy we believe will be most beneficial for you. This way you can be sure you receive the maximum advertising exposure possible for your property at the lowest possible cost. A: The Auctioneer is paid via the buyer’s premium, which is added to the buyer’s final bid. Said simply, it is only worth what the person who wants it the most is willing to pay. The broad exposure of an auction, coupled with the competitive bidding requirement, generates the most accurate valuation of the property. A: We understand your concerns and many of our sellers need to cover an existing mortgage or lien on their properties. There are great differences in the marketing and the public image of a voluntary, ‘by choice’ auction, such as ours, versus a distress auction. When multiple properties have for sale signs posted, the property with the CATES AUCTION sign will always garner most of the attention. This means that your property is exposed to the widest possible buyer audience, thereby increasing your possibilities of a successful sale at the highest possible price. We have marketing professionals producing all advertisements and marketing material, with an eye toward highlighting your property’s strongest features. Of course your property will also be featured on Multiple Listing Service (MLS), , and a variety of specially chosen listing sites. While every campaign is unique to the property, auction marketing typically consists of professional brochures, online advertising, print ads in key publications, targeted direct mail, e-mail marketing, realtor promotions, preview events, property signs, telemarketing, and a full-featured webpage with photo galleries and downloadable documents. From investment properties to luxury estates, from $50,000 to multiple millions, from fixer uppers to new construction, from a single acre to thousands of acres, we have successfully sold it all at auction. This means a quick and easy transaction for you without the hassle of negotiations, and the uncertainty of of an unknown sale date. Your property is sold in as is” condition, with a non-contingent contract, non-refundable deposit and 30-day settlement is required of the buyer. An auction provides multiple bidders competing to buy, generally bringing a higher price than negotiating with a single buyer. Advertising a property for auction creates a sense of urgency, bringing all interested parties together in a specified timeframe. A: To accelerate the sale of your property by generating additional consumer interest and activity. Seller risks overpricing and thus, property sitting on the market; or under pricing and selling too cheap. Aggressive Targeted Marketing utilizing Signs, Brochures, Newspapers, Email, Internet, Direct mail, Telephone, MLS & more. Special Message for Realtors: If you are a realtor assisting a current or prospective seller, we have several partnership programs available to allow you to offer a professional Cates auction to your clients. This website has a number of resources to assist you in this process. Whether you are just beginning to consider selling or you’ve already tried multiple methods, you are wise to explore the auction option. (See our Email Privacy Policy for details.) Emails are serviced by Constant Contact. You may unsubscribe via the link found at the bottom of every email. By submitting this form, you are granting: Tom Hall Auctions, 4644 Main St, Schnecksville, Pennsylvania, 18078, United States, permission to email you. Please complete the information below and click Sign Up. The seller sells their property quickly at a fair price and the buyer purchases the property for only one bid more than the next willing buyer. Call us today for a free no obligation, confidential consultation and proposal. Buyers immediately can decide if the property represents a fair value to them. The auctioneer will accept bids at or above the stated minimum opening bid. Since the sale is guaranteed, buyer participation and excitement are maximized. This deposit eliminates most buyers who are not sincere about buying from even bidding on your property. You can cash out normally in 60 to 75 days from time you sign a contract. However, if you need to cash out and can afford to give up 10 -20% of your value, it is a great tool and can be very successful if you select the right auction company. They can help you market the home which will result in more money. If you have a realtor who knows about auctions, yes, definitely. You can reasonably expect to get 60-80% of what it would sell for on the open market. The auction purpose is to sell your home fast and let you cash out now, not 6 -12 months from now. There is nothing worse than spending $3,000 to $6,000 on poor or inadequate advertising and not have anyone show up. I have seen advertising and not have anyone show up. I have seen that happen only with inexperienced auction companies. Larger homes or unique properties will cost more but if you do not advertise you will not succeed. Advertising: This is the seller’s only out of pocket expense. The buyer pays the commission which is 5 to 10% additional to the purchase price. Again, an experienced auctioneer knows how to get the most money out of the final 2 or 3 bidders. Once the buyers start bidding, it is only a few minutes until it is narrowed down to the top 2 or 3 bidders. It only takes two buyers to succeed, however, if they don’t sense the auction fever, a term that is hard to explain unless you have been to an auction, they won’t bid at all. Buyers love an absolute because they know if they are the high bidder they will get the property. This scares sellers because they are afraid they will lose more than they want to lose on the property. Absolute: The property will sell regardless of price offered. I. Advantages: Sellers love this because their comfort level allows them to sell and not lose any money beyond the price they will accept. Ii. Disadvantage: A lot of buyers will not attend unless the minimum bid is low enough to attract the investor type of auctionees. The best book I read was Church’s, Jails & Goldmines” by Steven Good, a professional worldwide auctioneer. Keep track of your favorite properties and get instant notifications if the price or status changes. Find Properties that match your search criteria and receive notifications when new homes hit the market. If the trustee does not evict the current owners, you may be responsible to do this. You should avoid spending money on repairs or improvements during the redemption period. In other states, you may need to wait a month or more for the sale to be confirmed by a court. In some states, ownership can be transferred immediately or within a few days. If you are the winning bidder, make sure you get the necessary documents from the auctioneer to verify that you are the winning bidder. Take as many cues from the other participants as you can, but don’t let them dictate how much you bid. Also, if you’re not able to pay the remainder of the bid within the time frame stipulated by state law, the deposit you paid at the auction is often nonrefundable. By setting a firm ceiling for your bid, you’ll avoid getting caught up in the heady auction atmosphere and overbidding, which can result in little or no bargain for you. If you own a home, you might be able to take out a home equity line of credit, which is a cash loan. If you don’t have that type of cash lying around, you have a couple options. You won’t even be qualified to bid if you don’t meet that requirement. Determining your bid amount is more obviously important in states where bidders are required to bring the full amount in cash or cashier’s check to the auction. Based on all the factors used to determine the potential bargain – and your financial capability – you’ll need to determine how much you can and should bid at the auction. So a first mortgage will usually have the first priority, and all other liens will be considered junior liens. The priority of a lien is usually determined by the date it was placed on the property. If no one bids above that amount, the foreclosing lender will take possession of the property. This is all public information and you can research on your own with the county recorder or you can use RealtyTrac’s property reports and tools to help. You need to find out as much as you can about the estimated market value of the property, how much is owed on the property and if the owner has any other liens against the property. If you get a friendly representative when you call the trustee, you might be able to get information about how the bidding works in your area, but in most cases you’ll need to educate yourself. In other states, bidders are required to bring a certain percentage (10 percent is common) of the bid amount to the auction and pay the remainder of the amount within a certain timeframe if they are the highest bidder. The bidding procedure varies from state to state, so you should become familiar with the procedure in your area before bidding at an auction. Although cancellations and postponements are announced at the time and location of the originally scheduled auction, you can call the trustee to find out beforehand. After you find a property online, it’s a good idea to drive by the property to get a better idea of the property’s condition and the type of neighborhood. It’s important to get up-to-date auction information and act on it as quickly and on a regular basis Develop a system to keep track of properties that interest you. Our commission splits are based on the bid price not the contract price. We intend to be in business, in Minnesota, for years to come. Or Minimum opening bid $10,000” when we know the seller won’t sell for that amount. Once the bidding starts at that price, the property sells to the highest bidder above that amount. There is always the fear that no one will show up and they will have to sell for pennies on the dollar. Please fill in the following information so we can alert the Home Guides editorial team about a factual or typographical error in this story. Thank you for providing feedback to our Editorial staff on this article. If the home sells for the full amount of the loan, the right of redemption period lasts only 90 days. To do this, the seller must cure the default on the loan, plus pay any associated fees. But generally once the bidding begins, anyone approved by the trustee can bid on the property until only one bidder is left standing. The proof of funds can include a deposit that is refundable if you do not win the property or cannot complete financing for the purchase within 30 days. In the minimum bid format, the seller sets the minimum bid, and public bids are taken from there until the highest bidder wins. Depending upon the type of property, location, value, and the size of the market area, the advertising budget can run from 1/2 percent to 5 percent of the estimated value. If you’re interested in trying to pick up a bargain property at auction, there’s a lot to learn. Without this information, it can be hard to know what you’re getting into, what a property’s repair costs will be, or the true value of property until you’ve become the new owner. Even if you win the auction, in some cases, you will not be allowed to purchase the property. For example, you may need a cashier’s check for the minimum bid amount of the property in which you are interested. You will need some amount of cash no matter what just to secure your bid. Also, because of the financial situation the previous owner was in, there may be other liens against the home, like tax liens, contractor liens, or a second mortgage. Properties being auctioned off aren’t necessarily hidden gems. Also, because of the extra risk involved and because fewer people may be interested in the property than if it were available through traditional channels, prices can be lower. Other times it is only possible to drive by and see the outside. These allow people to determine in advance which properties they wish to bid on and the maximum price they are willing to pay. Listings describing the properties to be auctioned are also available. Often, these properties are sold at a loss, but if there is a profit, it is supposed to go the homeowner after the mortgage and any other liens are paid. In an absolute auction, the winning bid gets the property. In a subject to lender confirmation auction, the lender doesn’t have to accept your offer even if you are the highest bidder. In these cases, it is the unpaid tax authority (not the bank) that seizes the property. The other main way a home ends up at auction is when the owner doesn’t pay property taxes or becomes severely delinquent on state or local income taxes. The amount of time it takes from when the homeowner stops paying the mortgage to when the home actually ends up at auction varies, but can be anywhere from a few months to a year or more. Then, the bank files a notice of default with the county recorder. First, the homeowner doesn’t pay his mortgage for several months. Before a property reaches auction, several things have to happen. Title can also be conveyed with a Special Warranty Deed The Terms of Sale will state the type of deed. A: A clear title, unless stated otherwise, will be conveyed via a Government Deed Back taxes, liens and/or other encumbrances will be paid by the Government. If you are unable to close, you will forfeit any deposits you made. A: Failure to obtain financing does not relieve you of your obligation to close on the property. These costs will be paid by the Buyer and Seller in accordance with the customs of the county in which the property is located unless stated otherwise in the Terms of Sale. Closing costs include transfer taxes, documentary stamps, recording fees and escrow fees. Only the seller may exceed closing beyond 30 calendar days. A: Closing occurs within 30 calendar days of the sale or sooner. A: Within three business days, the high bidder will deliver ten percent (10%) of the purchase price less the initial money deposit by either cashier’s check or bank wire. A: After the auction the high bidder and second high bidder (back-up bidder) will be required to make an earnest money deposit in the form of a cashier’s check made payable to CWS Marketing Group. Bid deposits must be received by 5pm one day prior to sale. Personal or business checks, bank letters, money orders or letters of credit will not be accepted. Once we receive your bid deposit you will receive an approval email. Note: A refundable bid deposit is required for approval to bid online. A: Cashier’s or certified checks made payable to CWS Marketing Group are the only form of payment accepted. These funds are not collected unless you are the successful bidder for a property. A: If you plan to bid at the auction, you will need to show a cashier’s check (made payable to CWS Marketing Group) in the amount of deposit stated in the terms of sale. The deposit must be in the form of a cashier’s check made payable to CWS Marketing Group. A: You are required to put an earnest money deposit down on each property that you purchase on sale day. A: CWSAMS is the prime contractor for the U.S. Department of the Treasury’s nationwide Seizure and Forfeiture of Real Property Contract. Good buys are possible, just be sure to do your own research and inspect the property. A: Public interest and the market drive the final price of auctioned properties. A: Seizures are due to smuggling, drug trafficking, money laundering, credit card fraud, food stamp fraud, mail fraud or other illegal activity. A: It is random in which state properties become available because these are criminal seizures occuring anywhere in the U.S. You may sign-up for free email notices that will alert you if a property becomes available in your area. Online Auction Deposit Form If you would like to place a bid for an online auction, please mail the Bid Deposit Form with your deposit to address on the form. Please mail the Written Bid Form with your bid amount and deposit to address on the form. Written Bid Form If unable to attend the live auction, you may submit a written bid. Bidder Registration Form You may print the Bidder Registration Form prior to the auction and bring to the sale. The bid is sometimes a dummy bid (see definition) but not always. Sniping – the act of placing a bid just before the end of a timed auction, thus giving other bidders no time to enter new bids. The reserve price differs from a minimum bid (see definition), in that the seller sets the reserve price (if desired), while the auctioneer sets the minimum bid. If the winning bid is below the reserve price, the seller has the right to reject the bid and withdraw the item(s) being auctioned. Reserve price – A minimum acceptable price established by the seller prior to the auction, which may or may not be disclosed to the bidders. If the proxy is outbid on an item during the auction, the proxy (depending on the instructions of the bidder) may either increase the bid (up to a set amount established by the bidder) or be required to drop out of the bidding for that item. The minimum bid differs from a reserve price (see definition), in that the auctioneer sets the minimum bid, while the seller sets the reserve price (if desired). If no one bids at the initial minimum bid, the auctioneer may lower the minimum bid so as to create interest in the item. If the lot is for a group of items, the price paid is for the entire lot and the winning bidder must take all the items sold. Alternatively, a participant may offer a bid at a smaller increment, which the auctioneer has the discretion to accept or reject. An auctioneer may decrease the increment when it appears that bidding on an item may stop, so as to get a higher hammer price. Increment – a minimum amount by which a new bid must exceed the previous bid. Escrow – an arrangement in which the winning bidder pays the amount of his/her bid to a third party, who in turn releases the funds to the seller under agreed-upon terms. The winning bidder has his/her earnest money applied toward the final selling price; the non-winners have theirs refunded to them. The purpose of this deposit is to deter non-serious bidders from attending the auction; by requiring the deposit, only bidders with a genuine interest in the item(s) being sold will participate. Dynamic closing – a mechanism used to prevent auction sniping , by which the closing time is extended for a small period to allow other bidders to increase their bids. Buyout price – A price that, if accepted by a bidder, immediately ends the auction and awards the item to him/her (an example is eBay ‘s BuyItNow feature). They announce the rules of the auction and the item(s) being auctioned, call and acknowledging bids made, and announce the winner. Instead of asking $100, hoping to entice wide interest (for who wouldn’t want a $1,000 car for $100?), the auctioneer may suggest an opening bid of $1,000; although the first bidder may begin bidding at a mere $100, the final bid may more likely approach $1,000. For instance, say an auctioneer is about to sell a $1,000 car at a sale. Another approach to choosing an SOB: The auctioneer may achieve good success by asking the expected final sales price for the item, as this method suggests to the potential buyers the item’s particular value. This is due to the increase in the number of bidders attracted by the low SOB. Several observations indicate that the lower the SOB, the higher the final winning bid. Thus there is a certain margin of safety to ensure that there will indeed be a lively auction with many bids submitted. Experienced auctioneers will often select an SOB that is about 45 percent of the (lowest) estimate. Once there is an opening bid, there will quickly be several other, higher bids submitted. To accomplish this, the auctioneer must start the auction by announcing a suggested opening bid (SOB) that is low enough to be immediately accepted by one of the bidders. There will usually be an estimate of what price the lot will fetch. The Auction Alliance 59 controversy focused on vendor bidding and it was proven to be legal and acceptable in terms of the South African consumer laws. If the reserve is not reached this should be clearly declared. A co-owner is one of two or several owners (who disagree among themselves). These are all official legal terms in Australia, but may have other meanings elsewhere. In Australia, a dummy bid ( shill , schill) is a criminal offence, but a vendor bid or a co-owner bid below the reserve price is permitted, if clearly declared as such by the auctioneer. In a first-price auction, a dummy bid is an unfavourable bid designed so as not to become the winning bid. In an English auction, a dummy bid is a bid made by a dummy bidder acting in collusion with the auctioneer or vendor, designed to deceive genuine bidders into paying more. This form of a ring was used as a central plot device in an episode of the British television series Lovejoy (series 4, episode 3), in which the price of a watercolour by the (fictional) Jessie Webb is inflated so that others by the same artist could be sold for more than their purchase price. In Britain and many other countries, rings and other forms of bidding on one’s own object are illegal. A ring can also be used to increase the price of an auction lot, in which the owner of the object being auctioned may increase competition by taking part in the bidding him or herself, but drop out of the bidding just before the final bid. To call out these nonexistent bids auctioneers might fix their gaze at a point in the auction room that is difficult for the audience to pin down. The objective of the buyer is to minimize his expected total cost for acquiring the fixed number of items. They established monotonicity properties for the value function and the optimal dynamic bid policy. In this model an item valuation derives from the sale of the acquired items via their demand distribution, sale price, acquisition cost, salvage value and lost sales. Environmental auctions, in which companies bid for licenses to avoid being required to decrease their environmental impact. Without modification, auction generally refers to an open, demand auction, with or without a reservation price (or reserve), with the item sold to the highest bidder. Of special interest and importance during the actual auction is the time elapsed from the moment that the first bid is revealed to the moment that the final (winning) bid has become a binding agreement. Where there are few bidders and each bidder is allowed only one bid, time is saved, but the winning bid may not reflect the true market value with any degree of accuracy. Open bidding during an extended period of time with many bidders will result in a final bid that is very close to the true market value. The number of simultaneous bidders is of critical importance. These goods are rarely in single lots – photocopiers or fax machines would generally be sold in bulk lots. This means that the goods have already been sold off, usually to a trader or dealer on a private, behind-the-scenes basis before they have had a chance to be offered at the auction sale. Usually these goods have been sold by ‘private treaty’. Private Treaty Sales Occasionally, when looking at an auction catalogue some of the items have been withdrawn. Bidders can also avoid the possibility of goods being damaged whilst they are being removed as they can do it or at least supervise the activity. The attraction is that someone else has already paid substantially to set up the policy in the first place, and you will be able (with the help of your trusty financial calculator) to calculate its real worth and decide whether it’s worth taking on. Here you find a vast range of materials that have to be sold by various government bodies, for example: HM Customs & Excise, the Official Receiver, the Ministry of Defence, local councils and authorities, liquidators, as well as material put up for auction by companies and members of the public. The winning bidder pays the amount bid for the item, without top-up. Losing bidders must pay the difference between their bid and the next lowest bid. Top-up auction is a variation on the all-pay auction, primarily used for charity events. Auction by the candle A type of auction, used in England for selling ships, in which the highest bid laid on the table by the time a burning candle goes out wins. You are consenting to receive this offer plus additional coupons, offers, updates, up to 4/mo, standard text message and data rates may apply. Since the seller typically pays for title insurance, a company has been selected and will be provided to you in the contract room. A: No. If a buyer does not close for any reason on or before the closing date, the initial deposit is automatically forfeited. A: A buyer’s premium is a percentage paid by the buyer and added to the highest successful bid to determine the final contract price. A: You will move to the contract table where you will present your check for the bid deposit and complete the sales agreement. The bid deposit is held in escrow and is deducted from the total purchase price, equal to the bid amount plus the buyer’s premium. A: No. The bid deposit is a non-refundable deposit, and it is usually an amount that we feel comfortable will assure the buyer will close. When a property is being sold absolute, it will be sold to the highest bidder regardless of the price. We try to make sure that the reserve is reasonable and that the seller is very motivated to sell at the high bid achieved, regardless of the reserve amount. You just need to bring and present a separate check for each property you intend to purchase. This amount is posted on the property page of the web site and in the brochure. If you fail to pay the balance due by the closing date, you forfeit your bid deposit. As a bidder, all you need to do is hold up your bidder card and call out your bid, or tell one of the bid assistants what amount you want to bid. Sellers are motivated to sell, and they offer buyers an opportunity to purchase desirable property at a substantial discount. Owners make a wise business decision to sell property in a one-day sale rather than continuing to carry costs associated with conventional marketing. You are only competing against the other market bidders, and you will not overpay. Since this is open for everyone to see, there is an inherent honesty to the process. You should inspect the property during one of the scheduled preview dates. We understand your concerns and your need to cover an existing mortgage on your property. Please keep in mind that we will be your agents and will have a fiduciary responsibility to represent your best interest. A. This is part of the interview process during our first meeting. The auction process is the best way to revive interest and create urgency in the marketplace to obtain offers at current market value. It usually has not been marketed effectively, and therefore, the property has experienced insufficient exposure. A. Often, we find that the price is not the reason why a property isn’t selling. This does not include normal wear and tear items or any problems that occur after the closing. A. There is no seller’s disclosure form for you to fill out: however, if there are any blatant defects, ethically we must disclose these to potential buyers. Generally, the marketing plan includes direct mail, local, regional and targeted print advertisements, our web site and other marketing avenues that may include radio and/or television. A. A detailed marketing plan is developed by the auctioneer and is presented to the seller for approval. The decision to sell absolute or reserve should be discussed in detail with your sales associate or auctioneer. You may also choose the reserve method, a set secretive price, which the seller will not sell below. It attracts purchasers from the broadest geographic region because buyers can justify their time and efforts to inspect, bid and buy, knowing there is no question that the property will be sold. This guarantees you are going to sell, and this creates a much greater interest with potential buyers. You are able to sell your property quickly, receive a fair market, no-contingency contract and usually close in 30 days. This is a legal term meaning that once the bidding is declared open the property will sell to the high bidder regardless of price. Buyers get maximum flexibility, Sellers get maximum value. The use of patented ‘MultiPar Software’ makes the whole bidding process easy to understand, and it’s FUN. Bill Fair and Company uses this multi-parcel method to generate the most successful auction possible! We accomplish this in an unrestricted open market forum with continual computerization of bidding results. Sometimes we offer a large piece of property which can be divided into one or more tracts. The high bidder will execute the contract and make the earnest deposit. When the auctioneer determines that there is no further increase offered he will declare the high bidder. From the first bid, things move quickly with bidders bidding up to the price they are willing to pay for the property. Any tie bids or other issues regarding who has the high bid are always resolved by the auctioneer, who has complete and final authority. If you did not intend to bid, simply inform one of the bid assistants or the auctioneer and the mistake will be corrected. It is a myth that bids can be made accidentally by scratching one’s nose or waving to a friend. Bid Assistants make sure anyone trying to bid is recognized. Bid Assistants will be introduced at the opening remarks. The Auctioneer is the person making the opening remarks and calling the bids. These comments usually take only a few minutes and the bidding is ready to begin! Remember that REO’s sell at pretty close to full market value and are not the deals presented on late night television. Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct. There are no costs to participate in our partnership program and in most cases you will earn the same fees as you do representing a client in a traditional sale, but in an accelerated timeframe! Thanks again for letting us have such a delightful time at your auction! We live in California full time but own a home in Southwest Missouri and are therefore in the area several times a year. Just a quick note to thank you for the sale and for the box of personal items you sent back to us. We are so very happy and pleased with the results and all you did to make it possible. We had an excellent turn out, a great sale and excellent follow-up. Cody for his help during setup and Tyler for the great job he did with the advertising and other staff that are behind the scenes. None of them offered the level of advertising or the commission rate that you did, even at double and triple the price. We had several people come and look at the property and they were all qualified buyers. The advertising fee was very reasonable, in fact, I could not have gotten any where close to that level of exposure on my own. I just wanted to drop you a line to tell you and the other folks at Diamond S Auction how pleased I was with the service you provided. I have personally recommend Diamond S to many different types of sellers and intend to continue doing so. It is my opinion that the ability to consistently advertise and market effectively for good attendance by interested bidders at different types of sales has been a big part of why customers are satisfied with the auction process. The customer can take a hands-off approach with virtually all of the preparation process being performed by Diamond S. This is exactly the kind of service that is perfect for heirs, many of whom are out of state, with little ability to manage the auction preparation process. I have dealt with Diamond S Auction for many years and have seen first hand the customer oriented approach that has proven to make the company so successful. We were also very pleased with the way they worked with the bidders to obtain the highest selling price for our properties. We were very impressed by their professionalism and attention to detail with the set-up, as well as, the computer presentation they used during the auction. If you are the winning bidder your deposit will be credited towards the purchase price of the property. All bidders are required to register to bid by: Providing government issued identification, completing a registration form, presenting a cashiers or bank guaranteed check to the auction registration clerk prior to being issued a bidders number. People who are seriously considering bidding on a property have commented time and time again how much they appreciate the updated information. Information is added to the DIGIBIP as it is produced like appraisals, disclosures, surveys, inspections or material facts about a property which may be discovered after the original digibip was made available for download. We ask that anyone who downloads the free digital bidder information package to provide contact information. No person who has not properly identified themselves will be allowed on the property. Registration is free and does not commit you to anything and simply provides the auctioneer a record of who has inspected the property. All persons & prospective bidders are required to register to preview or inspect the property. We do not count internet bids against live bidders who have not properly registered or paid the bid deposit. A. Internet bidding is available for qualified bidders. When you register to bid we require bidders to hand over the deposit check and/or bank letter of check guarantee. There are no private showings and we schedule for weekend and after normal working hours on a weekday. Second after looking over the information plan to inspect the property at one of the scheduled preview dates. The BIP contains copies of every document, pictures, seller disclosure, survey, deed, restrictions & covenants, appraisals and community information. First you should download the Bidder Information Package from the web. If you want to place a ‘pre-auction bid’ all you need to do is print out the bidder registration, terms & memorandum of bid provided in the DIGIBIP or contact the auctioneer and we will gladly send you the proper documents. Title insurance costs are like the recording fees they are based upon the price of the property. Title insurance and escrow services are available at the buyers’ option and extra expense. The winning bidder is responsible for closing costs which include deed preparation, transfer taxes, recording & processing fees. All properties are sold AS-IS WHERE IS WITH ALL FAULTS AND NO WARRANTEE OTHER THAN CLEAR TITLE BY DEED. All lots (parcels, homes, etc) offered at auction are sold free and clear of any liens or encumbrances including back taxes, water bills and association fees, unless otherwise noted and announced. You are the market you are the one who determines the value by deciding how much you are willing to pay for the property. We suggest that you download the DIGIBIP and READ THE INFORMATION as a starting point. We suggest that all prospective purchasers inspect the property prior to purchase and/or verify any information from independent sources. The information contained is from sources deemed to be reliable however neither the auctioneer nor seller take responsibility for the accuracy of any information contained. Please be sure you know where your purchase money is going to come from because there are no refunds of your bid deposit because you could not get financing. The property is sold without any contingency for financing or anything other than a free & clear title by deed. Right not the lending industry is hurting just as bad as the realtors are so if you have decent credit getting pre-approved is easier than ever. We try to have enough information on the property available in the DIGIBIP for a prospective bidder to bring it to their bank or lender. Please take a moment and read it again a few more times before asking what is the opening bid. To ask this question is like calling your stockbroker and asking how much IBM or eBay will close for on the stock market today. In most cases the seller is willing to deal with reality of all cash no contingency 30-day closing contract sitting in front of them. The first is when one owes more than a property is worth. The Industry Standard (and law in many places) requires the seller to obtain a certificate of release from their lender prior to or before advertising an auction as absolute or without reserve. Traditional agents are welcome as a BUYERS’ agent to represent a buyer at the auction and earn up to 3% without costing the seller or the buyer one cent more. Buyers are happy knowing they only paid one bid more than someone else was willing to pay and not an inflated asking price. Internet bidding is welcomed and encouraged however we require anyone who places Internet bids to complete registration forms, post the required deposits and to do everything any other bidder may be required to do. We strongly encourage all bidders to inspect a property by attending one of the scheduled previews in person. Auctioneer is an agent of the seller and any information provided is from sources deemed reliable but is not guaranteed. There are no ‘secret’ negotiations one-on-one like the ‘traditional’ system; the process is transparent, in the open & simple. For the few who are ready to sell, it’s a great alternative and not your last resort! Buyers who cannot close would be in jeopardy of losing any deposits + be subject to additional damages depending on the contract. For example the buyer cannot have a mortgage contingency, he must have all the funds ready to close within 30 days. To add it together, 30-45 days marketing + 30 days closing = 60 – 75 days. Typically an auctioneer will market your property for 30-45 days. They know, for example, a condo in south Florida that has been on the market for one year at a price of $250,000 is not going to go for anything near that. Keep in mind that auctioneers turn away 90% of the properties they look at based on the seller’s unrealistic expectations. This can be either published or unpublished to the public depending on the recommendation of the auctioneer. As long as your reserve price is reasonable, you can absolutely set a reserve price. For example, if the reserve price is $250,000 and the highest bid is $225,000, the seller does not have to accept the bid. A reserve price is the lowest price a property will be traded for. Closing costs and any other fees associated with transferring the property from the Seller’s name to the Buyer’s name are also typically covered by the Buyer, similar to the Buyer’s Premium noted above. Usually, the auctioneer uses all the marketing monies to implement the marketing campaign outlined above. Prior to signing a contract an auctioneer would provide a marketing budget, outlining where the marketing fees would be spent (this is required by law in some states). For example, let’s say the property is listed for $750,000 – the marketing fee would be between $7,500 and $22,500. Often times, if you include your property in a multi-property auction event with several sellers, the economies of scale kick in and your out-of-pocket fees can be reduced greatly. The rule of thumb that we hear out there is that the marketing fee ranges between 1-3% of the perceived market value of the property. Remember, there is no commission and the Buyer also pays all the closing costs, so having to pay a small marketing fee pales in comparison to a standard commission typically associated with a traditionally negotiated transaction. The money they are spending is usually the seller’s money. The commission is paid in the form of a buyer’s premium, which is a gross up on the bid price. Did it take 15 days for to notify you the bank accepted your offer, or did auction inform you it was accepted and then it took 15 days to get signed copy of contract from bank. I am trying to close on an property and was hoping for clarification. Additionally, there is an open house, so you can go through the property and inspect it at that time. I’m not an inspector (or even handy), but I’ve worked with enough properties now that I can do a once-over and have a good ballpark figure. I’m pretty good at eyeballing properties and knowing how much repair is going to cost. Keep up with that intensity and that debt will be gone before you know it. You’re taking ownership and doing something about it. 2 jobs and an eBay side hustle? A lot of people take the woe is me” pity party approach to their situation, and you’re going the opposite direction. I received the documents by e-mail and returned them via FedEx. The closing was handled by a title company out of Houston. I’d have been ticked had I won the auction to have the bank reject the amount; it’d be misleading. I’ve been sucked into them before (search for diamonds on my website and I have a good story there), so totally understand the allure. I’ve read reports online of people winning the auction but the bank refusing the offer – basically de facto, unstated reserve prices. I love a good auction, and even a bad one: real estate, antiques, storage lockers, government surplus. The closing company then took another two weeks to complete their end of the paperwork. The bank that owned this property took all 15 days to approve the sale. When properties are bought and sold through , the seller has 15 business days to accept the price. The following Monday, I initiated a wire transfer of the full amount. I called to ask if I could simply wire the entire amount and accelerate the closing. According to the contract, we needed to send in an earnest money deposit of the greater of $2,500 or 5% of the auction price. I I signed it using my iPhone, right there from the winery. As we were sitting outdoors enjoying a glass, the sales contract arrived in my Inbox. We celebrated our big win with lunch, followed by a trip to a winery. If someone else tries to put in an equal bid, I reasoned, mine would be higher. I offered a few dollars more than the minimum increment. We were at a bed-and-breakfast in the middle of nowhere, and I wouldn’t be able to find another connection if our Wifi went out. I was glued to my computer with sweaty palms, hoping that the Internet connection stayed solid. I knew that would add a few minutes to the closing time if there was a last-second bid, but I also figured that the other bidder(s) were using e-mail as a notification, and the e-mail wouldn’t go out until after the auction closed if I waited until the last minute to place a bid. It took between 1-24 hours before they would outbid me. They might be using the e-mail system, I realized, rather than watching the page. There are minimum bid increments that decrease as the price rises. When you bid, the page automatically updates to show if you’re the high bidder. It’s run in AJAX – computer-speak which means that you don’t have to keep hitting refresh” on your browser. The representative told me that if I placed the high bid, I’d have two hours to electronically sign the contract and that I’d be required to wire the earnest money deposit on the next business day. The representative wanted to confirm that I knew that it was an all-cash auction and that the property was being sold where is, as is,” with no contingencies. I also went through a mini pre-qualification process over the phone. They will put a $2,000 hold on your credit card, in case you’re a winning bidder and then back out of the purchase. When you register to bid on the property, you need to provide them with a credit card number. A couple of the properties sold for surprisingly high prices, but most of them wound up selling in a reasonable investor range. My wife and I noticed a few properties in our area that would make good rental properties (if the price was right). That means a lot of other people may come to bid on a property that you want. Soon you’ve broken your budget because you’re just trying to one-up that son-of-a-$#$&#% over there in the corner. Why I oughta…” — then you know it can become personal. If you’ve ever been to an auction, wanted something, and then been outbid by that so-and-so over in the corner who — … was that him SMIRKING at me?!? It’s not that I don’t like people (I do!), but the fewer people competing against me, the better. Since demand is higher, basic economics states that prices will be higher. — At most, 50 people attended my university’s surplus auctions, and only about 20 of them were serious buyers. I could quickly figure out whether or not I could an item would be profitable. I also researched how much each item recently sold for at my school’s last auction, so I knew my ‘wholesale’ cost. Knowing the Prices — I researched the prices of comparable, recently-sold items on eBay, so I knew the current fair market rate. I never lost money (though I make no promises that it can’t happen to you) when I purchased items at auction, even if a few items remained unsold. My transactions weren’t enough to pay for my grad school education , but it certainly covered beer money during those years. It was clear that they were doing the same thing I was, just on a grander scale. He’s got sharp insights about business, finance and life. Jason built and sold a 7-figure business after two tours of service in Bosnia. In this post, Jason describes how he bought a rental property through a foreclosure-auction website. STEP 1: Create your profile: Tell us a little about yourself and the type of home you’re looking for. Foreclosures may seem like a very scary home-purchase option but using can help take the fear out of the home buying process! Delinquency – When a homeowner fails to meet the terms of their mortgage for a prolonged period of time and after several notices. This is generally administered by a state agency and the bidders are usually required to pay cash at the time of purchase. As-is – Refers to a transaction where the property is transferred to the buyer in its current state, without any requirements for additional disclosures or any recourse available for the buyer against the seller. If you’re ready to take the plunge, do your research, speak with a professional, set a budget, prepare for the worst, and take it one step at a time. Even professional investors can end up upside down on these transactions. There will be no seller disclosure requirements either because, after all, nobody from the bank has ever lived there. The property will be transferred in as-is condition, so the buyer is taking on all of the burdens. Most lenders will not allow a transaction to close unless all of their requirements are met. Because of the uniqueness of the transaction, you’re more likely to discover additional liens on the property during closing. It’s also prudent to run a comprehensive title search and report. Often times the agent can get their hands on a recent inspection report, saving you time and money before you decide to move forward. Don’t skimp on the inspection either; it could end up costing you way more in the end if something gets missed. The bank won’t allow for any contingencies in the offer, so be sure about your decision. It’s recommended that you have a professional inspection performed prior to making an offer. This is primarily a protective measure to shield the bank from any recourse by the buyer. You can also check online public records and the county courthouse. You will want someone that can guide you through all of the twists and turns. IMPORTANT: As is” condition means that you will accept the property in its present condition; what you see now, and discover later, is what you get. Some of these agencies may assist with financing, but the IRS requires full cash payment for the property. U.S. Department of Veterans Affairs ( VA ), Small Business Administration ( SBA ), Fannie Mae, Freddie Mac, Internal Revenue Service ( IRS ), or others can save you money. The benefit here is that the lender is usually obligated to clear any additional liens on the property, including back-taxes, so it’s a much safer investment than an auction. For the buyer that means that there will likely be little room for negotiation. Generally lenders want to move this distressed asset off their books immediately and will price to reflect the market value of the property. However, when you purchase a lender-owned property, it can offer the least value and most competition. You will also want to have a clear understanding of any liens or encumbrances on the home. When buying an auctioned home it’s common not to have the right to view or inspect the property. In some instances, this as-is condition can limit how much you can inspect the property. The plumbing is drained, the hot water is turned off, and the windows may be boarded. Foreclosed homes are usually winterized to reduce the risk of damage to the property. It’s a good idea to register for a few as an observer to learn the lingo, rules, and nuances of the process. Some states may allow a good-faith deposit with a short redemption period, but more commonly you need to hand over a cashiers check for the full amount immediately. Though typically, once the loans are paid, there is no money left. When the property is sold to the highest bidder, the liens are paid and any overage is given to the homeowner. It’s important to note that during this phase the lender cannot take advantage of the property owner in any way, nor can the lender make a profit at the auction. Sometimes the property owner is not willing to remediate, and sometimes the lender is not willing to execute a short sale. Homes don’t always sell during the pre-foreclosure stage. IMPORTANT: Keep in mind that when the property enters pre-foreclosure, which is somewhat of a grace period, the owner has several months to pay off the default amount. The home is still sold in as-is condition, but the buyer may have the right to inspect the property in advance without the right to ask the lender to fix any defects. This helps the seller avoid foreclosure, and the accompanying credit history blemish, while usually translating into a discount for the buyer below the home’s market value. You can make an offer to purchase the property, but the lender has to agree with the homeowner to accept less than the outstanding balance on the mortgage loan. The owner vacates the property at the time of signing the short sale agreement. During pre-foreclosure the homeowner still has control of the property. That’s why it’s critical that you understand the risks you are taking and are willing to endure the as-is nature of the purchase and all of the baggage that entails. This damage can range from superficial, to the removal of hardware and appliances, and even the intentional damage of structural elements in the home. Often the owners will feel that the lender is acting in bad faith and will purposely cause damage to the home prior to their eviction. Chances are that if the owner wasn’t able to stay current on the bills, they weren’t able to stay current on maintenance or repairs either. It’s critical to understand that distressed properties are often treated poorly by the previous owner; after all, someone was forced to leave their home. As a group, these are considered distressed properties.” They are distressed because of both the financial situation of the owner and also the physical condition of the property. At certain stages you can get a better deal while taking on more risk, and in other stages you can absorb less risk but at the sacrifice of a bargain. If the numbers make sense they’ll make the deal, and if not then they won’t. You’re most likely communicating with the lender or bank that owns the property and for them it’s just a business decision. This means they have major major major issues like termites, wood rot, water against the foundation, rotten seals, bad roof, etc the list goes on. Comments may be held for moderation and will be published according to our comment policy Comments are the opinions of their authors; they do not represent the views or opinions of Money Under 30. Enter your email to receive our free weekly newsletter and MoneySchool, our free 7-day course that will help you make immediate progress on whatever money challenge you’re facing right now. Money Under 30 has everything you need to know about money, written by real people who’ve been there. The investor lends you the cash at a high interest rate (typically 12 to 18 percent) and looks forward to you not being able to make the payments back to him so that he can take the property. Hard money is a term used to describe money borrowed from a private investor. Therefore, you’ll need to bring a cashier’s check of the full amount of your maximum bid with the trustee’s name on it. If you get the property for less than your maximum bid, you’ll receive a refund. In Arizona, for example, you only need to put an earnest money deposit down at the auction, but you’ll only have a few days to pay in full. Due to the risks involved in buying a home at auction, that’s not going to happen. If your goal is to fix and flip the property, you need to take the ARV and subtract the repair estimates, your holding costs, listing expenses if you’re going to list it with a Realtor and the profit that you want to take as well. A friendly contractor can be very helpful in helping you price out tools and labor of any repairs that you think might need to be done. Many of the online tracking systems have tools for estimating ARV (after repair value), but a more accurate way would be to pull recent comparables and calculate the cost of estimated repairs yourself. It’s easy to get carried away with the emotion of bidding wars, but being willing to let a property go is your safety net. Calculate the maximum bid for each property that you are interested in. Write it down and stick to your maximum bid, not a penny more. You may choose to peek in through the windows or accidently” slip in if it’s vacant, but be aware of the laws and your safety! Getting access to the inside of the home before you bid on it is desirable but not always possible. Some investors don’t care much about a foreclosed house’s interior appearance, but if you plan on living in it for a while or even fixing and flipping, the inside should concern you at least somewhat. Because the auction purchases come with all existing liens and encumbrances, a title search in the form of a preliminary title report will help to identify things like IRS liens or past-due taxes that you, as the new buyer, must pay. Some title companies will charge you for this, and others will provide it for free if they feel they have a good chance of getting your business. If you bought a second position lien at auction, your purchase will still be subordinate to the first position lien, which could foreclose, wiping out the subordinate liens, so all the money you spent would be a waste. That said, ForeclosureRadar isn’t free and it’s not available in all 50 states, so you may have to do some research on your own. You can even download a ForeclosureRadar application to your phone so that instead of printing out a daily list and bringing it with you to the auction, you can just pull out all the details of the day’s auction on your phone. ForeclosureRadar is one of the best services I’ve found to find pre-foreclosures in your specific criteria such as zip code, age, number of beds and baths, etc. But just looking in the newspaper won’t give you the up-to-date information you really need. Notice of Trustee Sales or Sheriffs sales are published in a local newspaper weekly for a few weeks before they are sold at auction. Notice, for example, that most bidders wear sunglasses and keep their hands in their pockets; these tricks help them from showing their emotions whether it be excitement or disappointment. When you’re at the auction, get a feel for the bidding process and the way that people act. After all, you see the opportunity to get a lot more houses for a lot less money. Grayson holds certificates from the University of California campuses at Irvine and San Diego. Her articles have appeared in publications for Oxford and Harvard University presses and research publishers, including Facts On File and ABC-CLIO. Lee Grayson has worked as a freelance writer since 2000. The sellers sign the property deed after the winning bidder completes the financing or makes cash payment for the property. The winning bidder signs the purchase agreement for the property. Bidders receive bidding numbers or numbered paddles to indicate an offer during the formal bidding process. Most sellers set a minimum price for the sale, called a bid reserve. Sellers list properties with licensed auction firms rather than using traditional real-estate market listings for a variety of reasons. Another tip is to stick to your pre-determined maximum bid. Read the terms of sale or phone ahead to be sure of the method of acceptable payment. By contacting them well ahead of the date of the auction, you’ll be able to properly file any documents that are required. You’ll need to estimate the value of the property to avoid overpaying. They, therefore, will in most cases sell the property to the highest bidder, even though they stand to lose thousands of dollars or even tens of thousands of dollars. When a bank decides to sell a REO property at auction, they are usually very ready to sell. The bank then may decide to hire an auctioneer/broker to sell the property. If the current home owners still occupy the home, they may not be eager to allow you into their recently defaulted home to see what you’re bidding on. There is also a chance the home is in disrepair if the owners failed to make payments, and is something to consider before making an offer. If someone bids more than $200,000.00, the high bidder will be the purchaser of the property. If say, $200,000.00 is owed on the property the bank may decide to bid to the $200,000.00 to protect their investment in the property. Zillow is not responsible for the content on such third party sites and does not necessarily sponsor, endorse or otherwise approve of the materials appearing on the sites. The content may include links to other sites owned and operated by third parties. Veteran bidders conduct title searches on the properties in which they’re interested. Listen up. You may hear the auctioneer say something like: This property is sold subject to all liens and encumbrances.” That means the winning bidder is responsible for past-due taxes and liens imposed by contractors or the Internal Revenue Service. If your dream property is one of the first auctioned, you may be in luck. The first few properties offered often sell for less because bidders are trying to figure out pricing patterns. Make a set of photo and info sheets for each property, along with your top bid, just to avoid confusion on auction day. Calculate necessary improvements, based on a worst-case scenario” (replacing plumbing, electrical, etc). Your plans for the property will affect your maximum bid price. If you win this property at auction, will you live in the house? If it’s a disaster, there’s a chance the interior will be, too. If it is occupied, there’s a good chance the home has working plumbing and electricity, but this is not guaranteed. Study the home – You probably won’t be able to get into the home, but you should be able to tell if anyone is living there. Beware the neighborhood that is peppered with foreclosed properties; this may be a sign that values are still dropping there. Narrow your area – Choose a few neighborhoods to research. Be aware that auction dates often change or are postponed, so be sure to confirm specifics with the lender’s attorney or the trustee. You’ll also find states where the entire balance is due the day of the sale. In some cases, you must bring a percentage of the winning bid price in the form of certified funds, the balance being due in 30 days. You may see some buyers dressed in suits standing near the auctioneer in an effort to convince other bidders they’re representing the lender; such posturing may scare other attendees away from a bidding war. Sometimes these two processes are occurring at the same time. Tax-forfeiture occurs when an owner can’t pay their property taxes. His books, published originally by Harper & Row, have sold more than 300,000 copies. If the residents won’t move, you may need to contact an attorney who can obtain an eviction notice and arrange for a sheriff to clear the property. In some cases, you may be able to find utility records that can help you better understand property issues. Estimating repairs can be difficult because if the property is occupied, the residents may not want visitors. Each property is unique, so repair requirements can vary widely. Will there be any liens that will become my responsibility after the sale? Speak with a local attorney for details before bidding. In some jurisdictions, there may be an equity of redemption right that allows the borrower who defaulted to regain title to their property under certain conditions. Typically, they have 15 days to do so. Once an answer comes through, there’s an additional period required to arrange closing, which may take several weeks. Can I bid $1 more than the next bidder and win the property? With an absolute auction, one bidder will win, while with a reserve sale, it’s possible that no bid will be sufficient. People debate this question, but it’s largely a matter of personal preference. Get to know local auctioneers, brokers, attorneys, repair specialists and appraisers who specialize in foreclosures. Learn the mechanics of the auctioning process in your community. Ask auctioneers about financing and pre-approval requirements. What does matter is that successful bidders have the financial ability to close the deal on time and in full. Technically, it doesn’t matter if the funds come from you or a lender. This depends to a great degree on the laws in your state. The term all-cash” generally means the ability to put down a deposit immediately after a successful bid and close within a short timeframe. They want the money in case someone bids and wins, but doesn’t close the deal. As with a rental car reservation, you’ll typically have to provide a credit card number and expect the auction company to take a given amount to hold. Are foreclosures riskier than existing home purchases? Is there a lot of local sale and rental demand—or a little? How much would a given property be worth if it was in pristine condition? Be aware that trespassing and Peeping Tom rules may limit access unless you’re invited onto the property. It’s important to visit the property before the auction, if you can, especially if you live locally. In all cases, bidders should review disclosures with care and seek as much information as possible about the property. The condition of the property may range from wonderful to awful, and it may or may not be occupied. The property may be sold on an absolute basis (the highest bid wins, even if it’s for a tiny amount) or with a reserve or minimum bid (the property has to sell for at least a given price, otherwise the lender gets title). The property is sold as is, where it is, and with any existing faults and limitations. There are no terms to discuss, no haggling over paint or appliances. Sales of distressed homes usually come in several forms. The IRS also allows a property owner to redeem the property if back taxes are paid within 120 days. Decide what your maximum bid price is and stick to it. Do not allow yourself to get caught up in the bidding and go over the price you decided you are willing to pay. Inquire about town by-laws, ordinances, zoning issues and toxic or hazardous waste issues that may affect your purchase decisions. Or, they will disclose the amount of outstanding debt that the new owner must assume, in addition to the house’s bid price. Most reputable auctioneers provide a current title assessment that indicates that the property is free of all debt. A title search will locate outstanding debts, including unpaid taxes and property liens, as well as previous construction debts that can reveal unknown condition issues. Get pre-qualified for a mortgage from a bank or mortgage lender so you know how much buying power you have. After a bidder enters into the bidding, she sometimes indicates her continued bidding to the auctioneer with a head nod or hand movement. Watch the crowd carefully to spot who is bidding and notice how they bid. Pay attention to the auctioneer’s selling practice and how he calls for bids. Notice what fees the auctioneer charges and any money the winning bidder must pay in addition to the winning bid price. The auctioneer or property owner is legally responsible for disclosing this information to all interested parties prior to accepting bids. In addition to the cost of the home, you may need to settle unpaid tax bills if you win. He enjoys books, football, Scotch, unusual video games, Southern architecture, and learning new random subjects. Above all, be sure you can pay for it. If you withdraw a winning bid, you will face steep penalties. This is usually because the current tenant forbids it, and an angry tenant could decide to trash or gut the place before moving out after the sale. There can be serious maintenance issues with the home needing to be addressed before it may even be live-in ready, and even move-in ready homes at auction can be quite outdated on the inside. Buyers planning to bid for a property should be prepared to pay for the property at the auction, so come with a cashier’s check for the specified amount of money the auction holder requires to complete the purchase. The starting price of a property might be the balance remaining on the mortgage, or possibly a lower amount just to get bidders interested. Newspaper ads and online searches are good places to start. While it’s not for everyone, many people are intrigued by the possibility of nabbing the winning bid on a good property for a cheap price. By using this site, you agree to the Terms of Use and Privacy Policy Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc. Text is available under the Creative Commons Attribution-ShareAlike License ; additional terms may apply. Instead the mortgagee realises the security through sale, the exercise of the power of sale also being regulated by statute. In California and some other states, original mortgages (the ones taken out at the time of purchase) are typically non-recourse loans; however, refinanced loans and home equity lines of credit aren’t. Lender’s ability to pursue deficiency judgment may be restricted by state laws. If the mortgage is a non-recourse debt (which is often the case with owner-occupied residential mortgages in the U.S.), lender may not go after borrower’s assets to recoup his losses. It gives lender a legal right to collect the remainder of debt out of mortgagor’s other assets (if any). Deficiency judgments can be used to place a lien on the borrower’s other property that obligates the mortgagor to repay the difference. The mortgagor may be required to pay for Private Mortgage Insurance , or PMI, for as long as the principal of his or her primary mortgage is above 80% of the value of his or her property. In the case where the remaining mortgage balance is higher than the actual home value, the foreclosing party is unlikely to attract auction bids at this price level. However, there are a number of issues that affect how pricing for properties is considered, including bankruptcy rulings. At least one textbook has attacked the paradox inherent in the tender rule—namely, if the borrower actually had enough cash to promptly pay the entire balance, they would have already paid it off and the lender would not be trying to foreclose upon them in the first place 21 —but it continues to be the law in the aforementioned states. However, the debtor may have to post a bond in the amount of the debt. To keep the right of redemption, the debtor may be able to petition the court for an injunction. The holder of a mortgage without this clause has only two options: either to wait until all of the payments come due or convince a court to compel a sale of some parts of the property in lieu of the past due payments. The vast majority (but not all) of mortgages today have acceleration clauses. The Lender will also include any unpaid property taxes and delinquent payments in this amount, so if the borrower does not have significant equity they will owe more than the original amount of the mortgage. When the 10 or 30 days have passed that means that the acceleration has expired and the Lender can move forward with foreclosing on the property. Once the Borrower(s) receives the two letters providing a time period to reinstate or payoff their loan the lender must wait until that time expires in to take further action. This letter is called an FDCPA (Fair Debt Collections Practices Acts) letter and/or Initial Communication Letter. Also in the acceleration of the mortgage the lender must provide a payoff quote that is estimated 30 days from the date of the letter. Demand/Breach letters are sent out by Certified and Regular mail to all notable addresses of the Borrower(s). In the letter it informs the Borrower(s) that they have 10 or 30 days from the date on the letter to reinstate their loan. The notice of acceleration is called a Demand and/or Breach Letter. The most common time periods allot to debtor(s) is usually 30 days, but for commercial property it can be 10 days. Each mortgage gives a time period for the debtor(s) to cure their loan. The clause in the mortgage also instructs that a notice of acceleration must be served to the obligated mortgagor(s) who signed the Note. It can declare the entire payable debt to the Lender if the Borrower(s) were to transfer the title at a future date to a purchaser. When a term in the mortgage has been broken, the acceleration clause goes into effect. Not all accelerations are the same for each mortgage, as it depends on the terms and conditions between lender and obligated mortgagor(s). Acceleration is a clause that is usually found in Sections 16, 17, or 18 of a mortgage. As in judicial sale, the mortgage holder and other lien holders are respectively first and second claimants to the proceeds from the sale. This process involves the sale of the property by the mortgage holder without court supervision (as elaborated upon below). In some states, like California and Texas , nearly all so-called mortgages are actually deeds of trust. In some rather rare instances, foreclosures are filed in federal courts. A judicial decision is announced after the exchange of pleadings at a (usually short) hearing in a state or local court. As with all other legal actions, all parties must be notified of the foreclosure, but notification requirements vary significantly from state to state. These sites will also sell houses occupied and make the winning bidder be responsible for evicting or coming to other terms with the occupants. I plan to write a more detailed article on the other types of auctions, but for now know that each site has different terms and procedures. Many times they have no idea how the process works and you can build report by telling them how it works and what the timelines are. I also tried to talk to the occupants before the sale to get as much information as I could. Some investors will try to get into homes before the sale, but if caught it is trespassing and could be breaking and entering as well. After interest and carrying costs we ended up losing money. The lawsuit had not been recorded yet and we had no way of knowing about it. In the end the lawsuit was thrown out, but it took the judge one year to look at the case and we had to hold the property that entire time. After winning the bid we found out the previous owners filed a lawsuit against the bank claiming the bank foreclosed wrong. We had an and E that showed we were bidding on a first position note and we viewed the home before the sale. I have also seen new investors bid on a second loan assuming it was a first loan before. Some states have redemption periods as long as 6 months! Some states give much less notice of what houses will go to the sale and what the bids will be. I have heard some areas only have hours to research properties before they are sold. This requires bringing cashiers checks for the amount of money you want to bid. In Colorado there is no guarantee you are bidding on a first loan or you will get a clear title. A junior lien holder can redeem the property by paying off the first bid amount plus interest in full. There is a short redemption period for junior lien holders in Colorado that lasts at least 10 days. The winning bidders must sign a form and have until noon on Wednesday to come back to the office with a cashier’s check for the full amount of the bid. Pre-sale list is published every Monday afternoon, which lists the properties going to sale and the starting bid. The bank can also start the bidding at less than what is owed. The bank or lien holder will make a starting bid, which may be what is owed on the loan including late fees and interest. The experienced investors know how much they can pay for houses that come with all this risk and still make money. There is no guarantee you are even bidding on the first loan. In Colorado we are given the sale list for properties two days before the sale. If your financing falls through or you find a problem in your inspection you usually get your earnest money back. You have to evict them or possibly honor their lease if they have one. The less people you have to compete with when buying a house, the better chance you have of getting a great deal Many times auction companies will have strict criteria for buying their houses.In many instances I had to buy a house without seeing the interior buy a house that was occupied. Real estate auctions look much like other types of auctions. These auctions have much different terms than the foreclosure sales and are much easier to buy from. There are no open houses or showings when you buy a house at the foreclosure sale. There are many other types of real estate auctions which present excellent opportunities to buy at your own price. The two main types of property auctions are foreclosure auctions and tax lien auctions. Auctions typically take place at the sale house or at the county courthouse, in the case of foreclosure auctions. This section is a generic overview of real estate auctions and to answer frequently asked questions (FAQ’s) from bidders or prospective buyers. The majority of house buyers are owner occupants who need to get a loan Most investors also need a loan to buy a house and auctions that require cash eliminate those buyers as well. If this is your first experience with real estate auctions, here is some info on how our auctions work. Your best foreclosure real estate auction opportunity may be here. On one deal we had the winning bid on a house at the foreclosure auction. In some cases a house may be occupied and the buyer cannot inspect the interior until they buy. Diamond S Auction & Real Estate Company sold our house and farm in Kirksville, Missouri. Bidding at our real estate auctions is easy! Contact a lawyer that specializes in real estate transactions for advice and assistance if you are considering buying a house at auction. Prior to my real estate career I had been involved with car auctions and commercial auctions. The auctioneer may operate his/her own auction house (and thus perform the duties of both auctioneer and auction house), and/or work for another house. Land & Property Auctions Here you can buy anything from an ancient castle to a brand new commercial premises. The first step in preparing to buy a house at a trustee auction is to go down to the auction and see what the atmosphere is really like. Make sure you know exactly how the foreclosure auctions work in your state before you bid. While many people go the traditional route of buying a house by home-shopping for months—using a real estate agent and negotiating with a seller—some people instead choose to buy their home at a real estate auction. Many think that real estate auctions are the best way to get a good deal on a home. The most frequently asked question is what is the minimum bid”. The range of auctions that take place is extremely wide and you can buy almost anything, from a house to an endowment policy and everything in-between. Bids are as is where is. There is an open house date where you can inspect the house yourself. Keep in mind that foreclosure auctions are just a small segment of the real estate auction business. Real estate auctions provide one way to bring a number of buyers together at one time to bid for your property. Then again, I do my due diligence before I buy so I know exactly what my title will look like and if it’s a mess, I don’t buy. There are many variations on live real estate auctions. There are two types of auctions that may occur, a public foreclosure auction or public auction through an auction company. For the sale of consumer second-hand goods of all kinds, particularly farm (equipment) and house clearances and online auctions. The two (2) questions we get asked the most every auction is: what is the reserve price and what will the property sell for. You do not need to have a real estate agent or realtor represent you in order to bid at The Industry Standard auctions. When I used to go to our foreclosure auctions I used to see many new investors check out the auctions for weeks to see how they worked. If no one bids on the home at the foreclosure sale, the house will go back to the bank. No inspections: Many auctions do not let buyers inspect a house after they bid on it , like most traditional sales would. Before you go after the property you want, it is a good idea to attend other real estate auctions to see how they work. Most live real estate auctions are advertised months in advance. Supreme Auctions do not require that you be represented, however, if you are working with a real estate professional, they will be required to attend any open house viewings with you as well as the auction day. But now sellers are shifting to real estate auctions to sell their homes. In early days of real estate auctions only the properties in bad conditions or subjected to foreclosure were auctioned. Increasingly, real estate agents are discovering the benefits of real estate auctions. By law, unless stated differently, all auctions are reserve auctions. We work alongside real estate professionals, not against them. The foreclosure auction is the actual real estate auction open to the public and held usually on the steps of the court house, or inside the court house. Contact auctioneers in your area who specialize in real estate auctions, or call auctioneers’ offices to find out if they hold house auctions. This article has been about foreclosure auctions that the banks use to complete the foreclosure process. It depends on how many properties you are planning to buy. Larger auctions are the type of real estate auction for which you want to feel the most prepared. I have included some of our previous successful real estate auctions for your review. But this view has changed as the number of real estate auctions are increasing day by day because sellers of residential as well as commercial properties are opting to auction their property directly or turning to real estate broker houses to get top price as per market rates from the auctions. Real Estate auctions allow all parties interested in the properties to compete for the winning bid. The auctioneer will not let that house go for any less during the auction. This is what draws home buyers and investors to real estate auctions in the first place. A: Open house dates are scheduled prior to the auction for buyers to inspect the property and ask questions. Government, Bankruptcy and General Auctions Government and General Auctions are amongst the most common auctions to be found today. Again, run away from these homes as far as you can unless you have a contractor ready for major repairs and you can buy the house outright. Foreclosure auctions force the owner to sell in order to pay past-due mortgages. In my case I have bought a foreclosed house once and it worked out very well for me. After the repairs the house was worth far more than the price I paid. I used to buy most of my fix and flips at the foreclosure sale in Colorado and I even bought a personal residence at the foreclosure sale. A foreclosure auction gives the general public a chance to buy homes that are being foreclosed on by the lien holder. Non refundable earnest money: When you buy a house you have to submit earnest money to the seller. Promises and innovation in real estate auctions for over 30 years. Express Real Estate Auctions does not do an independent title search. If the investor purchased your house through the auction. If the property is not sold during the public foreclosure auction, the property is then listed with a real estate agent. Why would anyone be interested in buying a property at auction? Foreclosure auctions are held by bank-hired trustees Tax lien auctions are conducted by local sheriffs. REMEMBER: The house is being sold as-is and the auction house makes no warranties on anything and doesn’t care if you can’t get the money in 30 days. It would never be worth it to use hard money to buy a house that you’re going to live in though, since the hard money loans are short-term and high interest. More often than not, you will be making a bid to buy the property as is”. Participants can ask questions and get free, confidential advice from foreclosure counselors. Do I always need the full amount in cash to buy a foreclosure? Pay attention when driving for signs in front properties, especially if a house you want to buy is sitting empty. Lenders sometimes use real estate brokers to oversee the auctioning of the home, but not all real estate agents specialize in property auctions. There are many types of auctions, and some banks use another auction to sell the house once they have completed the foreclosure. On personal property and not real estate. A real estate auction is an innovative and effective method of selling real estate. A: A real estate auction is an innovative and effective method of selling real estate. Real estate auctions offer many advantages to motivated sellers who are committed to selling their property. Most states require that real estate auctioneers hold a real estate license. The long waiting period to own the house usually doesn’t work because the Buyer’s situation changes. In a public auction, you buy the property site unseen without inspection in most cases. Once you buy it, it’s yours to deal with – warts and all. If you are pre-approved for a loan to buy the property, take that paperwork to the auction. This type of deposit is most often used in auctions involving high-value goods (such as real estate ). The absolute best route to take is to work with an experienced real estate agent that specializes in foreclosure home sales. The appraised value/minimum bid prices for land listed are in the auctions section below. Most foreclosure auctions require payment in cash (or a cashier’s check) within a relatively short time after the auction. Attend several local house auctions in the area where you want to buy, whether you are interested in the particular property or not, so you can watch and get a feel for the auction process. When buying a house that you can’t see inside of, you have to consider how much the repairs could be. I almost always bought the houses from the auction for flips so I knew how much my repair budget could be to make money I would always assume a house would need new flooring, paint, appliances, fixtures and at least $5,000 in other repairs depending on the age of the home Sometimes we got lucky and the house needed less work and sometimes it needed more. There are many different types of real estate auctions that come with varying amounts of risk. A real estate auction works in much the same way as any other type of auction. Auctions are a different animal all together and the ‘œsellers’ do not want any possibility of a house they just sold does not close escrow due to any last minute lender issues. Qualified buyers will be gathered on a set date and time and are prepared to buy your property. Auctions are another way you can access and purchase an REO property. If you are house hunting, you may want to consider buying a foreclosed home, also called a real estate owned (REO) property. Many people initially think of the old, limited perception of auctions as what happens on the court house steps. In the Questions & Answers ” section we’ve collected some of the most common questions sellers have asked us over the years and provided the answers for you. If you call the county clerk, make sure you clarify that you are looking for the location of mortgage foreclosure auctions, not tax foreclosure auctions. Most auctions for foreclosure are public and involve bidders who appear in person to purchase the home. Auctions offer a first chance to snap up certain properties, so in theory, some of the best properties get purchased at auctions. Hurley Auctions welcomes partnerships with real estate professionals. As one of the preferred auction providers for real estate firms, we work in cooperation with leading real estate professionals. At Property Auction, we’ve assisted in thousands of real estate auctions – we know what works, and we can help you. When I was in graduate school, I used to buy random pieces of computer and scientific equipment from my schools’ surplus auctions. Lender foreclosure auctions require court approval before the property transfers to the buyer. If the house has been abandoned then there is a good chance that the person might have stripped everything of value out of the inside of the house but still left the outside in relatively good condition. Foreclosure auctions differ substantially from a typical residential sale. Craig Donofrio lives in New Orleans, where he writes about real estate and finance news. Cash purchases: Many auctions require the buyer to pay cash for houses they bid on. Foreclosure auctions may require the buyer to have cash the same day they bid or before they bid on a property. Why should you consider putting your property up for auction? Promoted Real Estate Auction. Below are answers to common questions about buying real estate from the U.S. Department of the Treasury. They never were but real estate professionals could not deny the global success of selling real estate at auction. Successful auctions are the result of dedication through hard work and a commitment to quality. And unlike some real estate auctions, Perlmutter’s home isn’t in foreclosure or distress. Bankruptcy auctions are similar to foreclosure sales in that a distressed situation exists. However if you are looking for a property to renovate, an auction is an excellent way to buy a property that may need a ‘little TLC’. I don’t often take the time to go to auctions because I just haven’t had much luck in the past. Supreme Auctions has been successfully marketing luxury real estate for sale by auction for over 30 years in 70 countries around the world. Many times it has been found that real estate auctions remain incomplete because the buyer or successful bidder is turned down for mortgages. This typically occurs because many of the properties up for sale at foreclosure auctions are worth less than the total amount owed to the bank or lender. What can be done to stop or postpone a forclosure auction? To find out how a customized Father Time® real estate auction can help you efficiently and effectively sell your real estate talk with us about your Real Estate for expert guidance. Frequently it is determined by the type of property that is being sold and the seller’s particular needs. In many states, all the auctions in each county are at the same location. Most auctions are at a public place in the same county where the property is located. This Premium is usually 5%-10% of the purchase price depending on the auction house. Auctioneers may or may not (depending on the laws of the jurisdiction and/or the policies of the auction house) bid for their own account, or if they do must disclose this to bidders at the auction; similar rules may apply for employees of the auctioneer or the auction house. Police Auctions 47 Police auctions are generally held at general auctions although some forces use online sites including eBay to dispose of lost and found and seized goods. A: Buying real estate at an auction is a very simple process. Very often real estate agents work directly with banks to handle REO properties. Many people, however, don’t have enough money to pay cash for a house. There are 3 main stages of foreclosure: foreclosure auction, real estate owned (REO), and pre-foreclosure. You should consult an attorney and/or a foreclosure specialist for individual advice regarding your own situation. Always review the terms of the current auction in the Auctions section. The lender does not have to wait this period before auctioning off the house. If the sale is a foreclosure auction run by the lender, the property is often still in foreclosure. A house that has gone through a foreclosure auction and failed to attract any acceptable bids may remain the property of the owner of the mortgage. This is not a fun situation to be in, when trying to talk to someone about buying their house they are losing to foreclosure. However, investors or even owner occupied bidders can buy houses at the foreclosure sale if they bid more than the banks bid (assuming the bank isn’t bidding as well, which is possibly). Some online auctions are less risky than foreclosure auctions, which can provide opportunities for less experienced buyers. Clear title: Many foreclosure auctions do not guarantee clear title. I am buying a house now that is occupied and I have never seen the interior. Perlmutter is part of an increasing number of luxury homeowners choosing to forgo the traditional Multiple Listing Service, months of walk-throughs and back-and-forth deals with real estate agents, instead letting an auction house do all the work in selling their homes. An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. A buyer’s premium is sometimes used on selling of real estate. And most auctions require you to close quickly in 30-45 days. We have had great success selling all types of real estate including Farms, Commercial, Residential, & Land. This is essential when a real estate takes lot of time to sell and the owner is represented by a real estate agent or broker. Knowing Your Property – Many property auctions are held on-site to allow buyers to look at the property they will be bidding on. However, some auctions are held online, with no chance for the buyer to inspect the property. If you feel that Wells Fargo did not provide you notice of foreclosure, you may seek legal advice through a real estate attorney to determine your rights. Once this is cleared, he opens the bid for each house on the list. Just talk with the auctioneer about our upcoming schedule of auctions. Do not auction your house if you expect or must get full price. Buyers like absolute auctions because the seller is obligated to accept their bid. These auctions typically have the highest number of bidders because they know if they are the high bidder they will win the property. Down payment amounts and methods of purchasing often depend on the property and the auction house. U.S. Treasury auctions accept only a cashiers check bid deposit. However, you are not required to have a broker in order to bid at the auction. In the sale of all types of real property including residential and commercial real estate , farms, vacant lots and land. On-Site Auctions Sometimes when the stock or assets of a company are simply too vast or too bulky for an auction house to transport to their own premises and store, they will hold an auction within the confines of the bankrupt company itself. Titles If you fancy being the Lord of the Manor then you can buy a hereditary title at auction. Motor Vehicle and Car Auctions Here you can buy anything from an accident damaged car to a brand new top-of-the-range model; from a run-of-the-mill family saloon to a rare collector’s item. Indeed, some of the more interesting recent developments have been the use of the Internet both as a means of disseminating information about various auctions and as a vehicle for hosting auctions themselves. A: Some auctions have financing available, while others do not. The auctioneer will say the number already bid and the next number asked to be bid. The good news is that there are auctioning agents that offer reliability and a fall back plan for you. Most jurisdictions are required to publish notices in the local paper of pending foreclosure auctions. Specialized agents will have a network of contacts from traditional lending institutions, mortgage banks, other real estate agents, and residents living in areas where you hope to buy. This is not just because they will have better access to available listings, but also because foreclosure transactions are very different from conventional real estate sales. Keep in mind those pictures might be quite different from the current condition of the inside of the house. If you have access to the Multiple Listing Services through a broker or real estate agent, you may be able to pull up pictures from an old listing when the house was for sale. You must either have the cash or be willing to take on a risky, high-interest hard money” loan to buy the property. And you’re tempted by foreclosure auctions (where banks sell foreclosed homes to quickly get rid of them). Foreclosure auctions typically require the buyer to pay immediately, often in cash, or set a limited number of hours after the auction for payment. Some auctions, however, offer the house as an absolute auction, without any minimum sales price. What’s the best way to learn about auctions before actually buying? People who buy these properties hope that the risk will be offset by the kind of discount prices often available on these homes. Visit or phone the town hall that governs the property you want to buy. In the past, acquiring properties through auctions was generally limited to real estate investors and professionals, but that’s no longer the case. If the winning bidder does not show up, the second highest bidder is notified and given a chance to buy the property at their highest bid. Before the lien holder can take possession of the house through a foreclosure, they have to offer it up for auction. Buying homes and real estate at live or internet auctions can expose you to risks not present in a typical purchase, and may best suit experienced cash buyers- see below to find out why. I started attending residential auctions in 2006. The traditional channels of searching real estate listings and working with real estate agents aren’t the only way to acquire a property. Foreclosures are a great way to save money on a home, whether purchasing your very first home or you are looking to buy an investment property, foreclosures are an excellent option. Foreclosure starts have fallen to the levels last seen before the mortgage meltdown, but while the worst of the crisis is over, opportunities to buy homes at with big discounts remain in every market. Real estate professionals may use auction terms unfamiliar to many buyers and sellers, but these terms may be very important to the success of your auction experience since they describe how the auction will work. There have been cases in which the sellers have accepted online bids or offer, and the auctions were called off. Alternatively, you could attend a few auctions of individual properties and see how the process works for each one. When you go to a foreclosure auction in which dozens of real estate properties from the region will be sold, the pace could be very fast. A real estate auction is also called a foreclosure auction, in which the sellers will try to secure the biggest financial return on a distressed property. Indisputably, auctions are fast and short on aggravation. One of my best real estate brokers accompanied me. It was his first auction. There are certainly deals to be had but auctions can be very dangerous for buyers. We start the auctions promptly and usually they are very brief. Auctions are successful in considerably bringing down the amount of time a property is on the market for sale. Many real estate owners prefer to go for a direct auction instead of going to a auction houses to avoid payment of sales commission to real estate brokers which is about 8-10 percent of the property’s value. The buyer’s premium is a service charge that is added to the high bid for our public auctions. For our public auctions the property is generally only available for viewing 30-90 minutes prior to the auction. No Other Sales Method Can Ever Duplicate The Excitement Associated With Auctions. Auction Is The Best Solution To Sell Real Estate Versus The Conventional Method. You can purchase the property from the bank through a real estate agent once the property has been listed. For every property in every auction, Father Time® Real Estate Auctions prepares a comprehensive Bidder’s Information Packet to provide detailed information and earn a buyer’s confidence. Highly competitive, back-and-forth bidding does nothing but drive the price up. This defeats the purpose of an auction, which is to buy a home for less than market value. A real estate auction conducted by a private company works in much the same way. Tom Hall Auctions represent sellers with one common goal, to sell their real estate in the shortest time frame with the least inconvenience and for the best possible price. After 30 days, your house can go to auction and the buyer has 30 days to arrange financing. I had both bought and sold various items and products at auctions. Some states have redemption periods for the owner, in which case the owner can buy the property back from you if they pay the full amount paid at the auction, plus applicable fees. It’s also not uncommon for auctions to be postponed without a new date being published. Bidders can avoid this problem by working with an auction house to ensure that the property has clear titles. The majority of sales are onsite auctions held at the property location. A: Buyers may have home inspectors examine the property during open house dates at their own expense. This is a fillable form used for only live auctions held at the property site. A: All of our auctions are conducted utilizing the Open-Cry bid system. The seller has the option to accept any bid at the auction, whether it meets the reserve or not; however, a reserve will keep some bidders from attending and performing the necessary due diligence to buy the property. We will offer to sell equipment if the real estate is being sold as well. As an award-winning auction marketing firm and leader in the real estate industry, we welcome the opportunity to work with you. Has facilitated hundreds of auctions from sellers inquiring about the auction process. Buying a house online, like buying anything online is very tricky business. I’ve attended some in-person foreclosure auctions, to watch how the game is played, as well as watching online auctions on and Bid4Assets. We tracked the online auctions to see how they proceeded – just as I tracked the results of my university’s surplus auctions during my grad school years. I know this seems like I’m repeating #1, but is one of many ways that people find out about foreclosure auctions at the courthouse steps. Foreclosure – The process by which a lender can repossess a homeowner property in order to repay an outstanding debt. Commonly the lender’s agent will also clear and clean the house for sale. NEVER, EVER buy a lien in second position, or any lien that isn’t first position for that matter, unless you know exactly what you’re doing. But if you can pull off buying a house at auction, you can get into a home for as much as 50 percent off list price. State or county tax auctions offer government-confiscated properties. I can see where a lot of care would need to betaken before buying an auctioned house. Is it better to go to absolute auctions or sales that require minimum bids? In some cases, you may be able to see a virtual tour or even attend an open house. Do a full title search done on a property if you spot a house coming to auction that you think you would like to bid on. Check with your REALTOR® and local auction houses to find out when property auctions are planned. Most people are actually friendly and will at least tell you if they are renting or if they own the house. All of these factors make it tough for most buyers to purchase homes from auctions. Short notice: Some state foreclosure sales give buyers very little time to know what houses will be bid on and how much the starting bids will be. Other online auctions will give the buyers weeks notice before an auction. If the house is occupied, you can’t just kick out the occupant. It’s easy to attend a real estate auction and feel you are out of your league. Powell Auction Specializes In Estates, Real Estate, Personal Property And The Development Of Farm Land, Lake Front And Commercial Property. When land is forfeited, no taxes are collected. Please note, a majority of our auctions do not utilize a buyer’s premium. If you are serious about selling, you should contact us. Auctions are our specialty and only business. The tried and true method is on the lawn.” Bidders stand outside of the house while the auctioneer makes the sale. Hiring an auctioneer who routinely handles sales of houses similar to yours will make it more likely that he’ll attract a crowd of buyers who are hoping to buy a property that is similar to yours. Luckily, most auctions include a fee for a buyer’s agent to represent you. For this reason, as-is auctions are best-suited for cash buyers. Has proven that the auction method can work for any type of property. The owner of the property has passed away and the property is being sold for the estate of that person. On auction day, Supreme Auctions suggest that you make arrangements to arrive at the property at least 45 minutes prior to the scheduled Auction time. We further understand that for us to continue successfully marketing high-end real estate by luxury auction, Supreme Auctions must continue to market properties of sellers who are truly committed to sell. It is important to have any questions answered prior to the auction as once the property is sold it is final. From the initial consultation, through the open house and auction day, and throughout the closing process, Doerr Auction & Realty, Inc. Buyers enjoy auctions because they compete in an open and fair environment. Auctions appeal to people – it brings them in to look at all the listings you hold, not just the auction listing. The two common ways of buying a foreclosed home are through a real estate agent or through a public auction. After two years of hearing what a buyer’s market it is but being afraid to buy with prices still falling, buyers are getting up the gumption to jump into the market with both feet. A good auction company will have a following, a number of buyers who will attend their auctions on a regular basis. If you can’t secure a cash loan, you may consider trying to buy a pre-foreclosure or bank-owned property, both cases where you can usually obtain a regular mortgage loan secured by the property being purchased. You can get started by reading state foreclosure laws You could also contact a local real estate agent or attorney in your area. First, we do two types of auctions, absolute (without reserve) and reserve (auctions with a minimum selling price). Auctions can be a riskier way to purchase a property than buying a property through a real estate agent , so it’s important to be extremely well-educated about the process and about the properties you are interested in bidding on. Also, just because a home is for sale at auction doesn’t mean that you’ll be able to get it at a good price (or that the home is a good deal at any price – it could be a money pit!). The consignor maintains title until such time that an item is purchased by a bidder and the bidder pays the auction house. Antiques and Collectibles Auctions Auctions of antiques and collectibles are fascinating places and hold the opportunity for viewing a huge array of items. Make sure all your questions and concerns are answered before you attend an auction. Many people are afraid of the old, outdated perception of auctions. We auction all types of real estate from condominiums, single-family homes, land (agricultural and timber), commercial and investment properties and high-end trophy properties. Offering a property in this manner increases the buyer base, creates a positive and exciting auction event, and gives all bidders an equal chance to buy exactly what they want. To offer the asked for bid simply raise your hand or speak out to the auctioneer or one of the bid assistants. They understood that they were selling more than a house and farm, they were selling our home! A. Bidders are qualified with a substantial deposit in order to bid. The buyer is agreeing to buy the property as it is, which could be as simple as a broken garage door to a major environmental issue. In a real estate auction commissions are typically paid by the BUYER, not the seller. Short Sale – A real estate transaction that happens before foreclosure occurs, usually with the approval of the lender to liquidate the property for less than the outstanding loan balance. This is where all real estate transactions for a property in that county are recorded. Auctions are typically conducted by a neutral third party such as a trustee or sheriff. Auction companies occasionally require all potential bidders to deposit cash to participate in property auctions of high-priced properties. Most auctions don’t last long; if you’re five or 10 minutes late, you may miss the whole thing. Some larger auctions will have representatives from several large mortgage lenders in attendance. Many auctions require bidders to bring along a certified check for $5,000, made payable to the auction company. Observe the buyers – Sometimes auctions are as much about theatrics as they are about business transactions. If the house is coming to auction, there should be a sign out front announcing the date of the auction and listing a phone number where you can call for more information. Auction winners must go through a property closing just like a traditional real estate transaction. Auctions can be held at local courthouses, conference centers or at the auction company’s office. We looked through the windows and the house appeared to be completely vacant. Some states have owner redemption periods, which means the owner of the home has a period of time to pay off whoever bid at the sale and get the house back. Other states have much different laws and each states handles their auctions differently. That usually leaves the experienced investors to battle over houses at auctions. Arrive at the auction early, to give yourself time to inspect the property, register and ask questions. PMI brings innovation to the time proven real estate auction methods. Selling real estate has traditionally been a time consuming process for both the seller and buyer. Hurley Auctions has been providing clients with an unsurpassed level of service for over 20 years. Selling a property through a real estate auction helps determine the true value of your property and brings serious buyers to your listing. Usually a lender obtains a security interest from a borrower who mortgages or pledges an asset like a house to secure the loan. You actually do not need a real estate agent to bid on – though in many instances it is allowed and there is a commission available. We are anxious to share with you our real estate auction marketing strategies and how we can sell your property at auction. If your bid is not successful or if the bidding war goes over the listed price, you know in the back of your mind you can always attend other auctions and purchase a similar property. Therefore, before you plan a real estate property bid, you should contact the auctioneer to determine if you can inspect the property prior to auction day. Overall, the real estate auction process will be easier to understand once you have seen it in action. Some are being sold because the owner has died and their estate has authorized the sale. And it probably isn’t wise to select an auction company that never does anything but bank-owned foreclosures if you and your real estate are solvent. Call me (208)866-3481 for more information and professional help on real estate auctions in Ada and Canyon counties including Boise, Meridian, Eagle Star, Kuna, Nampa, Caldwell, Middleton and smaller outlying cities. Auctions encourage emotional heat-of-the-moment competition and reduce your bargaining power. Your property won’t get lost in the mix of a listing with other real estate. Pre-sales of auctions have actually become popular, meaning once the auction is advertised, many offers come in for the property before the auction date in the hopes of bypassing any competitive bidding. We recommend that you arrive at the auction early, in order to have enough time to register with the auctioneer and to tour the site. There are many traps and pitfalls that the buyer needs to navigate in order to win an auction. During the auction, our bid assistants will be available to relay your bid to the auctioneer and answer any questions you may have during the auction. Decide whether you wish to be represented by a real estate broker. Therefore, Supreme Auctions are committed to providing you with a clear and concise understanding of the property being sold, the terms of the auction, and the auction process as it relates to that specific auction. No other auction company in New England can match PMI’s experience in auctioning real estate. He should consult experienced and professional auction consultant who have specialized in real estate auctioning. Since auction is the best way to get true market value for the real estate, the magic of an exciting real estate auction works for the marketing of these properties for sale. Real estate auction is an exciting event both for the auctioneer and the bidding parties therefore they are always well attended. In addition by setting a minimum price, he will no longer have to bear the risk of buying back the property if it does not reach that price and will also save the cost of paying the required sales commission to the auction house. Performing the Auction – As a seller, once you have put your property up for auction (especially if you are working through a property auction service), most of your work is done. This may require that a real estate auction service be contacted or that parties be hired to help you conduct your property auction. They are realizing that auctions promote activity in an industry that thrives on activity. A well-conducted real estate auction by its very nature minimizes such failures. The foreclosure process is not very difficult to understand. Double J Auction and Realty also offers online auctions for the convenience of the seller, available depending on the type of marketing plan chosen by the seller. You can try it’s an online auction site for national real estate including Arizona. If it is, the lender may or may not stop the foreclosure. Many auction companies sell properties from various banks and investors, holding auctions across the country either in-person or online. This is also known as a foreclosure property or a bank-owned property. Auctions create urgency for buyers who wish to purchase the property, and an absolute buying deadline that did not exist prior to offering the property up at auction. Auctions are unique events that focus market attention on the property, at the expense of competing properties. It’s best to avoid a bidding war during a real estate auction, especially if you’re new to the process. For the most part, the real estate auction process works the same, regardless of where it’s held. If your property is actively listed with a real estate agent, they are welcome to contact us as well. Check our Upcoming Auctions schedule or give us a call at 816-781-1134 If you come to one of our auctions, be sure to introduce yourself! Our auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price. Residential, Commercial, Land are the primary categories. We will extensively research your property and help you determine the best way to market your real estate. Our team of professionals is dedicated to making your real estate auction a success. Deposits: When bidding on a property, most auctions will require 5 -10% of expected value of property upfront in cashiers check. I have seen many auctions fail and they were almost always resulting from inexperience and no long history of results. After a few months of attending auctions, I wanted to learn more so I started reading various books on auctions. You may encounter investors who attend many auctions every month and who don’t necessarily appreciate new competition. If you are a potential buyer planning to attend a Real Estate Auction and would like representation that understands the auction process, please give us a call. Dan Hiller is a licensed Real Estate Broker and Kevin Hiller is a licensed Real Estate Agent. Some auctions allow Internet bids; others require sealed bids before the auction begins, with the winner being the highest bidder. Because auctions are usually cash transactions, the county may require that any bidder verify her identity and ability to pay for the property before the auction begins. If you can’t afford the risk of buying a property in poor condition, stick with auctions that allow you to inspect the property before bidding. If a property winds up at auction, it means the owner was having financial trouble, so the house may have deferred maintenance problems. In the case of a foreclosure auction, the lender is not allowed to profit from the auction. A real estate contract will be executed at this time by the high bidder and back-up bidder. You would need to work with your lender to prequalify for a loan prior to attending the auction. Auctions may set a reservation price which is the least/maximum acceptable price for which a good may be sold/bought. Auctions may differ as to the price at which the item is sold, whether the first (best) price, the second price, the first unique price or some other. Insurance Policies Auctions are held for second-hand endowment policies. Internet Auctions With a potential audience of millions the Internet is the most exciting part of the auction world at the moment. A: All of our auctions are Open-Cry type auctions, meaning that the auctioneer asks for each bid, and the bidders simply signal the auctioneer that they accept. A. We hold all auctions on site or in a central meeting facility, depending on the needs of the seller and the number of properties being offered at once. Our auctions are positive, enthusiastic events designed to generate competitive bidding and to provide immediate results for both seller and buyer. We will work with your broker throughout the entire process. We certainly hope to return to your auctions on our return visits! Give us an opportunity to talk to your Clients and explain the benefits of a personal property or Estate auction. INTERNET BIDDERS MUST REGISTER THE SAME AS PUBLIC BIDDERS: has offered internet bidding with 100% of our auctions during our entire history. BIDDING IS OPEN TO ALL MEMBERS OF THE PUBLIC: All auctions are open to bidding from members of the general public meaning that anyone who is properly registered with the required deposit may bid on the property. If you are interested in auctioning your property start by filling out the begining of real estate auction sellers form below. Their local Realtor left the keys under a rock at the house (a long story; they seemed disorganized). There were people who conducted tens of thousands of dollars worth of transactions during those monthly auctions. Real Estate Owned – Representing a foreclosed property that did no sell at auction and has returned to the possession of the lender. Auction – Occuring if a property goes into foreclosure. If the property fails to sell at auction it will move into the full possession of the lender and become real estate owned. Auctions are usually cash only, which tends to limit the field of bidders to investors and other lenders. In this case the home moves into foreclosure at which point it will be sold at auction. The case is usually that the owner has stopped being able to make timely payments and likely negotiated with the lender to sell the house below market value, also commonly called a short sale. Also, do your due diligence on several homes that you’d want to buy and not just one, because it’s likely that the one you have your eye on may either be delayed (and delayed, and delayed) or sell for a higher price than what you’re willing to pay. Order a preliminary title report from a title company. Each county’s auctions are run a little bit differently, and you’ll want to know the ins and outs of the auction in your particular area long before bidding. Perhaps you even know somebody who bought a home for cheap at a foreclosure auction. The proceeds from these auctions pay any taxes owed, with the remaining cash returned to the homeowner. As with any major purchase, there is quite a bit of homework to do before attending the real estate auction. Once the bank has possession of the property it is now called a REO (Real Estate Owned) property. Typically, the foreclosure real estate auction process won’t allow you to view the property’s interior before making a bid unless the bank grants you access, if the property has been abandoned by the previous owners. Before you head to the real estate auction, you will need to understand the different kinds of foreclosures. This content is not, nor is it intended to be, legal advice and should not be relied on in lieu of consultation with an attorney. If you’re entertaining the thought of buying a foreclosure, it’s smart to attend a few auctions as an observer. Free mortgage foreclosure information workshops are held for homeowners who are worried about making upcoming mortgage payments, are already behind on payments, or just want to learn more about foreclosure; and for renters whose landlords may be facing foreclosure. After the classification process, an appraised value is set for the land. The county is then responsible for management of the Tax-Forfeited Land Program. Is the nation’s leading online real estate marketplace. It depends on which foreclosure and which existing home. The division of the lending institution that sells foreclosure properties and the division that does real estate financing are two separate organizations. Speak with local real estate brokers to better gauge the market. Because this remedy can be harsh, courts almost never allow it. Instead, they usually grant an order for possession and an order for sale, which mitigates some of the harshness of the repossession by allowing the sale. Nevertheless, in an illiquid real estate market or following a significant drop in real estate prices, it may happen that the property being foreclosed is sold for less than the remaining balance on the primary mortgage loan, and there may be no insurance to cover the loss. HUBZU, Homesearch, and many more sites have auctions for REO properties that the bank already owns. In the day (Tuesday) before the sale we would get an and E (ownership and encumbrance report) from the title company, check out the house as much as we could and then decide if it was worth bidding on the home. Many buyers are scared of auctions because of the possibility of losing earnest money, no inspections and other issues. The popularity of auction sales of real estates is increasing day by day despite the dominance of the traditional process of real estate selling. Summary: This article explains how a real estate auction works, and how you can use them to your advantage. In today’s unpredictable economy, selling real estate can be a frustrating and sometimes intimidating process. At a minimum bid auction, the auctioneer only accepts bids that are at or above the published minimum price for that piece of real estate. After all, auctions appeal to potential sellers, bankers, attorneys, trust officers and accountants. In the end, a real estate auction is a potential way to get a distressed property from a lender for a bargain price, perhaps not much more than 15 percent below the fair market value. Most importantly, you shouldn’t rely only on what you learn about the property from online or printed information from the lender or lender’s real estate agent. Absolute auctions heighten the drama – there’s no turning back – and bring in better prices, says Rose and Bratton, who sold his Hot Springs home at auction. There are usually very limited opportunities for potential buyers to view the property – often just a couple of hours before the sale, so the seller isn’t inconvenienced by potential buyers trooping through the house for weeks or months. Sellers love auctions because they are fast, efficient and effective,” says Joe Wilson, owner of Wilson Auctioneers Inc. In the last few slow-market years, the real estate auction business has been growing like crazy. Perlmutter, who followed previous Grand Estates auctions before choosing the company to sell his house, said he expects similar success Tuesday. Live auctions for local homes and real estate, storage liquidations, personal property, business equipment, estates, benefits and fund-raisers. We will work with you to create the best advertising package that meets your budget. Myth #9: Auctions are attended by mostly experienced investors, leaving little chance for everyday buyers to get the winning bid. The estate may be handled by an attorney or by a family member acting as the personal representative. Please feel free to ask any questions regarding these announcements and the terms of sale. They post signs and they network with real estate brokers to get the word out. Our staff will be on hand to answer any questions about the closing process and ensure a smooth transaction. Our professional on site auction showing staff will give you a guided tour of the property and answer any questions you may have about the auction process and the property itself. Contact us today to setup a consultation , where you’ll speak with one of our auctioneers to find the best options for your real estate. The auction method is cited in most of these statutes as a requirement to foreclose on a mortgage often referred to as a Foreclosure Auction or Mortgagee’s Sale at Auction. Paul McInnis and his staff bring years of real estate auction experience, as well as professional auction marketing techniques, to the sale of real property. To date, PMI has sold private homes, single house lots, waterfront mansions, condominiums, shopping centers, subdivisions, farms, and rural land, all by auction. Many times, it is wise for a real estate owner to auction a property not in use to cut down maintenance expenses. Real estate auctioneers are at a liberty to set a minimum price which is more than its market value that he will receive in any case. The properties available for auction often include homes, condominiums, commercial buildings, operating businesses, and undeveloped land. This will probably again require legal and real estate counsel, and direct correspondence with the winning bidder on your property. Setting up the Auction – the first step in auctioning off a property is to consult legal and real estate counsels to make sure that the proper procedures will be followed in the auction. However, not all real estate is well suited for auction – if it does not appeal to a broad market, it may not be profitable to try to auction your property. Government auctions often include perfectly good property that has been seized or foreclosed upon, and can be excellent markets for the thrifty buyer who does his research on the property and knows what he is purchasing. A single auction for one development might bring in dozens or even hundreds of prospective buyers who are now in the real estate agent’s market area. If this occurs, and the opening bid is not met, the property is deemed a REO or Real Estate Owned. This Also Allows Us One More Opportunity To Address Any Questions And To Emphasize The Selling Features Of Your Property To Prospective Bidders. This would b in order to drive by and take a look at the exterior condition and neighborhood. Whereas, it takes an average of 30 days for an REO or traditional real estate sale to close. On top of this, REO (real estate owned) or bank-owned homes are available for showings unlike those homes in the public auction. Despite these challenges, auctions can be a good resource, as long as the excitement of bidding does not lead you to buying a foreclosed home at an inflated price or more than you can comfortably afford. After the property has been listed with a real estate agent, marketed for a set period of time and has not sold, the bank will often transition the property to an auction company. A public foreclosure auction can occur when ownership of the property officially transitions to the bank. As with a typical real estate transaction, out-of-pocket expenses can occur before and after an offer to purchase a property has been submitted. Let the Insured, Licensed and Credentialed Experts at Father Time Auctions be your complete liquidation solution. For many types of properties, selling at auction is a powerful, highly effective alternative to traditional real estate brokerage. After the gavel drops, the winning party makes an initial deposit and executes the real estate contract. Our auctions are designed to be easily understood by bidders, and create a comfortable environment for bidders to make their purchasing decisions. The lender might add on other expenses incurred during the foreclosure process. This gives you an opportunity to ask questions about a particular property, or to conduct a walk-through inspection. A: While we hold most auctions on-site, there are several other options available including, an off site gallery style” event, a sealed bid format, and an online-only auction. For more information on the changing view of Real Estate at Auction, see Media on Auctions”. A: A key advantage of auctioning real estate is the benefit of a customized advertising and marketing program. In order to be affective the opening bid must be low enough to act as an inducement to buyers. It is an art to see a successful auctioneer work the audience of buyers. This turned out to be one of the most valuable real estate experiences I had ever learned. If eviction is necessary, you can contact a local real estate attorney or the county sheriff for the proper procedure. Clarify with the auctioneer and a real estate attorney what further steps need to be made before you take ownership and possession of the property. A real estate attorney or title company can check for liens, or you can check directly with county records. If you already are familiar with real estate auctions, please click on the Broker Participation form below. If you would like to hear more about the advantages a Real Estate Auction has to offer, call for a no cost no obligation consultation. Our purchase agreements and other real estate forms are provided by the Minnesota Association of Realtors. It’s important to check the county’s foreclosure auction by-laws to know which auction format the county uses. This isn’t normally used in foreclosure auctions, because the seller has no choice but to sell. But for savvy, intelligent and motivated individuals, property auctions are worth exploring as a way to pick up a home or an investment property on the cheap. The bank doesn’t have to accept the winning bid in subject to lender confirmation foreclosure auction. Auctions take place at local government courthouses and other locations chosen by auction companies, such as hotel conference rooms. If you are talking about private auctions like REDC, you may be able to get financing but you must bring a willingness to pay a Buyer’s Premium on top of closing costs. You need cash and you need to investigate each property, you also have to be willing to take a risk that the property doesn’t have any liens on it. The investors who buy at the courthouse or wherever they’re scheduled at (public libraries etc) have massive amounts of cash & are willing to take the risk that there could be some outstanding lien, including IRS & otherwise. Commission – a fee paid by a consignor/seller to the auction house; it is typically calculated as a percentage of the winning bid and deducted from the gross proceeds due to the consignor/seller. Auctioneers are frequently regulated by governmental entities, and in those jurisdictions must meet certain criteria to be licensed (be of a certain age, have no disqualifying criminal record, attend auction school , pass an examination, and pay a licensing fee). In Sweden and many other countries there are no legal restrictions, but it will severely hurt the reputation of an auction house that knowingly permits any other bids except genuine bids. This is the practice, especially by high-end art auctioneers, of raising false bids at crucial times in the bidding in order to create the appearance of greater demand or to extend bidding momentum for a work on offer. They also provided a model 57 for the case in which the buyer must acquire a fixed number of items either at a fixed buy-it-now price in the open market or by participating in a sequence of auctions. A bidder could find themselves bidding for items which are still plugged in, and the great advantage of these auctions taking place on the premises is that they have the opportunity to view the goods as they were being used, and may be able to try them out. Every year several of these specialist auctions take place and quite apart from the value to someone who wants to be addressed as Baron or M’Lord, they are enormously entertaining for anyone interested in people watching. A: You must register with a valid ID (Driver’s License) on auction day and receive a bidder card in order to bid. Buying real estate at an auction allows you to experience a quick purchase and closing, to eliminate lengthy negotiations and to secure the market value was paid. They may also assist with questions during the auction, including asking the auctioneer to pause if necessary. An auction moves very quickly and a single piece of real estate will be sold in about 5 minutes from start to finish. The auction approach is presented as a tool to real estate professionals to supplement their business, not replace it. Your people are so professional in how you look, how you run the auction, how you are open to questions and how quickly you get the things sold. If I am ever in need of doing another real estate auction, I will definitely be looking for Diamond S to do it. Thanks again for your help, I am very satisfied with the service you provided. If the reserve price is not met during the bidding which is more and more the case in this real estate market then the memorandum of bid or auction contract is written up and presented to the seller for approval. Real estate sold at auction is presumed to be sold with a reserve unless advertised as being absolute, unreserved or with no minimum & no reserve. If the answers to these questions are yes, yes and yes – your property may be a good auction candidate. Now that’s quick, and that is ONE OF THE BIGGEST BENEFITS OF SELLING REAL ESTATE AT AUCTION! It’s typically based on a traditional real estate broker’s opinion of value or even the last list price. In order to successfully market an auction, auctioneers spend a considerable amount of time, efforts and money to promote an auction. I’ve never seen a foreclosure auction – or otherwise – where you could make contingent bids. I kept watching until a house came up for sale in a neighborhood that had high rental demand, low supply, and strong rents. Encouraged by the success of my eBay side hustle, I recently decided to try my hand at a real estate auction. We invite readers to respond with questions or comments. Yes, that is data from February of 2009, but your chances of getting a killer deal on a home at the auctions are only increasing. ForeclosureRadar , a comprehensive auction-tracking tool for real estate professionals, states that 80 percent of homes that were auctioned in California in February of 2009 were sold at an average of 36.3 percent below listing price and 40 percent of the homes sold at auctions were sold for 50 percent or a greater discount. There’s no need to make your first bid at the maximum price that you are willing to pay, if you can potentially win the real estate auction for a lesser bid. By gauging the average pricing in the neighborhood, you will be able to get a sense of what appropriate bids may be on the day of the real estate auction. This is an opportunity to purchase the home, from the defaulting owners, before the foreclosure auction even occurs. Pre-foreclosure is the time between the Notice of Default being delivered and the foreclosure auction itself. REO occurs when the property fails to be sold at the above foreclosure auction and ownership is assumed by the bank. If you think basic repairs for a house will run $15,000, you don’t want to end up paying $130,000 at auction if the move-in ready home next door is listed at $140,000. Expect the house needs, at the very least, cosmetic upgrades: new carpet, paint, appliances and kitchen cabinets. In most regions, notices about upcoming auctions are published in legal newspapers or the legal section of the local paper. Many buyers have never attended a foreclosure auction before – either a large auction in which dozens of properties from across a large geographic region will be sold or a smaller trustee auction. The county’s portion pays for the maintenance, operation and repair of tax-forfeited land on inventory. Peter G. Miller is a nationally syndicated real estate columnist. Most liens are sublimated (or wiped out) by a foreclosure sale. All real estate investing—like all stock market investing—implies some level of risk. Lastly, real estate values are related to local economies. If that doesn’t work, the lender may start foreclosure proceedings, and the home may be put up for sale at a public auction. Property liens and outstanding taxes may also exist on houses auctioned by owners or as part of an estate settlement. Before bidding, be sure to check for any liens against the home Work with the auction company and research the home’s title as thoroughly as possible before bidding. In a foreclosure auction, the lender cannot profit from the auction, and these properties are often sold at less than market value. The bank re-possessed the home and wants to sell it in order to recover the money it originally lent. In these situations the owner/servicer tries to sell it through standard real estate channels. When the entity (in the US, typically a county sheriff or designee) auctions a foreclosed property the noteholder may set the starting price as the remaining balance on the mortgage loan. The process for buying at the foreclosure sale I outlined is only the process for Colorado. I can get a better deal on the MLS than I can at the foreclosure sale in my area. RealtyTrust’s highly trained Auctioneers and Auction Specialists educate themselves on each property we sell so that they can answer your questions quickly and accurately. I understand that you are looking for other customer reviews (which is a great idea), but if you have any questions about our policies, website, etc – please don’t hesitate to ask. Her work has been published in law reviews, local newspapers and online. We guarantee a clean clear title to the property or your down payment is refunded in full, buying at auction is very easy, please let us know if you have any questions or concerns. This is a brutal myth fabricated by some traditional real estate agents that used this ‘fear’ technique to frighten sellers from utilizing an auction. If you work for another Government agency, check your agency’s policies. If you wish to bid on all but purchase only one, than you need only one deposit check (generally the properties will be sold in the order they have been listed on the website and flyer.) If you are planning on buying more than one property, you will need a deposit check for each one. Typically, a wide variety of real property is available, including homes, condominiums, commercial buildings, operating businesses, and vacant land. Alternatively, a real estate auction may offer you, the potential bidder, the ability to submit a bid in writing, also called an absentee bid, which will then be considered during the bidding process. Other participants in a real estate auction, especially big ones, might seem to represent the lender, which is pure drama, and other attendees could be mortgage lender representatives. A week earlier, the company sold for $1.72 million a Charleston home that had languished on the market for four years under two different real estate firms without a single offer. Sales of residential real estate at auction grew by more than 47 percent from 2003 to 2008, according to the National Auctioneers Association. The way agency works in Idaho, the listing agent can not fully represent you because they already work for the seller. The mass promotion of the property being auctioned is what makes this method of sale work. Partition sales involve marital disputes or partnership disagreements, and may or may not be conducted under a court order. Settlement times, deposits, and terms of sale are advertised prior to the auction, as in the case of a foreclosure. Feel free to bring an expert with you, such as a knowledgeable friend, property inspector, contractor, real estate agent or appraiser. Real estate investor Justin Pierce writes an occasional column on the art of buying and selling houses for profit. This will allow for you to complete your Bidder Registration, (if you have not already done so), collect your Bidder Packet, take a final tour of the property and ask any remaining questions you may have before the live auction commences. We will work closely with you in the days leading up to the sale, by providing you the information you need to evaluate the property and be prepared to make a sound decision on the auction sale day. With traditional real estate sales, many buyers of luxury homes, ranches, penthouse apartments and other properties worry that they will pay too much. Has conducted hundreds of Real Estate Auctions, promoting the properties of each individual seller and giving our full attention to meeting the seller’s goals for the property. Our company utilizes both traditional brokerage and accelerated auction marketing to sell all types of real estate including commercial, industrial, resort, multi-family, mixed-use, waterfront and residential properties. We hold real estate broker and/or auctioneer licenses in Maine, Massachusetts, New Hampshire, Vermont and Florida, with affiliates across the United States. There are many statutes that regulate the foreclosure proceedings for a mortgage. This approach allows the auction method of marketing to work at its maximum potential and creates the utmost motivation for prospective buyers to become interested in the property and ultimately attend and participate in the auction. A profitable auction opportunity is created when there is limited supply of a particular type of property whose demand in the real estate market is relatively high or the market is declining with limited buyer’s interest in this traditional sales process. Often a buyer tends to assume that if a property is up for auction instead of being sold in the regular real estate market, there is a defect or something about the property that the seller believes will hurt his sale or does not wish to disclose. When you purchase property at a foreclosure sale, all junior liens other than property taxes are wiped out. The foreclosure Trustee Sale typically occurs on the steps of the county courthouse in which the property is located. If the default isn’t corrected (the loan must be brought current) within three months, a foreclosure sale date is established. There are several stages during which the homeowner has an opportunity to bring the loan current and avoid foreclosure. At That Point, The Successful Bidder And The Seller Or The Seller’s Representative Will Sign A Real Estate Contract, The Necessary Deposit Will Be Collected And A Closing Date Will Be Set, Typically Within 30 Days Following The Auction. Professional Bid Assistants Will Be On Hand To Help Address Questions And Ensure That Everyone Who Wants To Bid, Does Indeed Bid. The banks lose around 20% to 25% of the loan’s value on a foreclosure. In addition to searching the usual resources such as newspapers and online real estate listings and websites, you will want to search various bank and government websites for REO properties. Getting prequalified is a process in which a prospective borrower provides financial and other information, such as employment history and funds for a down payment, in order for a lender to determine how much loan the borrower may obtain for the purchase of a home. Negotiating the purchase price of a foreclosed home may take a little longer than a typical real estate transaction because the process may require multiple levels of approval. And in order for a buyer to feel comfortable enough to purchase a property at auction, the Buyer must be confident that there is ample opportunity to investigate the property thoroughly before competing in active bidding. Some homeowners who are losing their homes to foreclosure harbor resentment toward their lenders. This contrasts with traditional real estate listing contracts, in which buyers typically maintain many options for easily exiting the purchase contract. If the market value is at a level below your existing mortgage, then that is the price that you have to work with regardless of what selling method you choose. Our custom marketing ensures that your property stands out when buyers and Realtors are evaluating commercial properties, land or homes for sale in Kansas City MO and surrounding areas. We will then implement our strategic Accelerated Marketing Program” that is designed to reach buyers that will be interested in owning your real estate. The Professional Guide to Real Estate Auctions” by Stephen Martin and Thomas Battle III. Other factors to consider are the rate of real estate appreciation in the area and the potential for increasing the property’s value by making repairs and improvements. The opening bid at the auction is based on the total amount owed to the foreclosing lender and may include fees incurred because of the foreclosure proceedings. In California, the right of redemption for a foreclosure sale lasts for a year. A: Single and Multi-family Homes, Condos, Townhouses, Land (Commercial, Residential & Agricultural), Commercial Buildings (Retail, Warehouses, Operating Businesses). Sometimes they end up with a property with a $50k+ lien on it, but it doesn’t matter so much to them because they’ve got $30M to work with. Relisting – re-selling an item that has already been sold at auction, but where the buyer did not take possession of the item (for example, in a real estate auction, the buyer did not provide payment by the closing date). Proxy bids are common in auctions of high-end items, such as art sales (where the proxy represents either a private bidder who does not want to be disclosed to the public, or a museum bidding on a particular item for its collection). Consignee and consignor – as pertaining to auctions, the consignor (also called the seller, and in some contexts the vendor) is the person owning the item to be auctioned or the owner’s representative, while the consignee is the auction house. Katehakis and Puranam provided the first model 56 for the problem of optimal bidding for a firm that in each period procures items to meet a random demand by participating in a finite sequence of auctions. Led by sites in the United States but closely followed by UK auction houses, specialist Internet auctions are springing up all over the place, selling everything from antiques and collectibles to holidays, air travel, brand new computers, and household equipment. Also in this group you will find auctions ordered by executors who are entering the assets of individuals who have perhaps died in testate (those who have died without leaving a will), or in debt. In short, if the true market value is at a level below your existing mortgage, then that is the price you have to work with regardless of whether you use the traditional method of sale or the auction method. If there are real estate agents involved, either representing you or the bank, those agents are required to provide you their disclosure statements. Our objective to joint venture with real estate professionals has never changed; we want to offer Realtors a solution, not become their competition. This is a requirement as professional real estate auctioneers; we have a fiduciary responsibility to the seller and lender to keep a record of everyone who enters the property and/or is interested in purchasing the property. Real estate is not sold contingent upon financing, inspections, appraisals, feasibility studies or any subject to clauses. There are lots of resources available on the Internet, from title companies, real estate agents, bankers and more to help you figure out what a property is worth. If there is anyone with the ability to predict the selling prices of real estate at auction before it happens or the price of a stock, sporting event, horse race or whatever please let me know who they are so we can hire them. In this situation we are dealing with lenders to accept short sales for less than what is owed even if the property is not in foreclosure. 1) There are thousands and thousands condos just like it in South Florida and 2) in order to motivate buyers and auctioneers for that matter, they need to have realistic expectations. The auctioneers we work with average 80%+ closure ratio, meaning over 80% of the properties that are brought to auction result in the property being SOLD! I was pretty sure that the bank was going to accept my bid because a) it was above the stated reserve price, and b) it was only slightly less than the foreclosure amount. But while I was there, I became distracted by a HUGE throng of people attending a concurrent foreclosure auction. Foreclosed homes can sell for up to 50% off market value, depending on the location & type of foreclosure. This is where working with a specialized foreclosure agent can come in handy. The most important thing to understand about closing on a foreclosure is that it’s a non-standard transaction and the lender will have their own processes and requirements. Foreclosure sale ads from the VA and the FHA are posted in newspapers on a regular schedule. This tends to be a slower process and involves more paperwork than other types of foreclosure transactions. REO is the most popular method of buying a foreclosure because it’s generally the easiest and safest way. It also helps the lender control costs by avoiding the foreclosure process. FACT: Foreclosures come in four primary flavors: Pre-foreclosures or short sale, auction, real estate owned (REO), and government owned. Understand that foreclosure is a process and there are multiple stages during which the homeowner can resolve the delinquency or a potential buyer can make a purchase. In general, when purchasing a foreclosure expect a very impersonal experience. If you’re up for the inherent risks, you’ll want to know how it differs from a normal real estate transaction, what options you have, and where to look. Most of the auction homes hav been on the foreclosure market for 18 to 24 months because of their high price and stagnant economy. Hard money can be risky, but if you can afford to make those payments and you think you’ll sell the property fairly quickly, it can work. Instead, research different foreclosure tracking tools. Fair warning: If you have a full-time job (and you aren’t in real estate), it could be challenging to find the necessary time to prepare to bid at a housing auction and do the necessary research. If you can’t make it down there because of your work schedule, consider having a friend or relative experience the action and report back to you. Foreclosures still abound in the U.S. real estate market, although some areas (think Florida and Las Vegas) have way more than others. The amount matches the real estate commission in some states (a percentage of the final sales price), but other firms set a flat commission fee. The foreclosure auction is generally considered best left to the professional buyers, who understand the legal aspects and who can afford the risk of buying a property without being able to inspect prior to the auction. Zillow also posts foreclosure auction information on homes, including location, date and time. Be prepared to obtain a cashier’s check, money order or certified check for the required down payment (amount will be calculated by your property manager and will include a non-refundable application fee). If the property taxes remain unpaid after the statutory expiration of redemption period”, the land forfeits to the State of Minnesota. Real estate tends to attract liens, so it makes sense to get title insurance for the property with the insurer you prefer. Since it’s the lenders that are selling houses, why don’t they just finance the foreclosure sale? Some properties are zombie foreclosures,” a situation where the borrower has abandoned the property before the foreclosure has been completed. If you purchase property at a foreclosure auction, the original owners may exercise their right to recover the home by paying off their dept. Purchasing a foreclosed home from a lender directly or on the traditional real estate market is less risky than buying a foreclosed home at auction because, in a longer process, important information about the home may come to light. In a weak market the foreclosing party may set the starting price at a lower amount if it believes the real estate securing the loan is worth less than the remaining principal of the loan. If repossession is imminent the debtor must seek a temporary restraining order. Because the right of redemption is an equitable right, foreclosure is an action in equity. Alternatively, the court may order the property sold subject to the mortgage, with the proceeds from the sale going to the payments owed the mortgage holder. This process is generally much faster and cheaper than foreclosure by judicial sale. Under this system, the lender initiates foreclosure by filing a lawsuit against the borrower. I have made a lot of money from houses we bought at the foreclosure sale, but I have also lost money because of the nature of the auction. Every state has different laws regarding foreclosure auctions, which will make it very tough for inexperienced buyers. Typically we always suggest that the buyer do proper due diligence on any property they are looking to bid on. This might include title research, obtaining a real estate lawyer, driving near the property (and viewing the inside if open houses or private viewings are allowed), contacting the listing agent, etc. A foreclosure occurs when a property owner cannot make principal and/or interest payments on his/her loan, typically leading to the property being seized and sold. Foreclosure auctions, conducted on courthouse steps, in convention centers across the country and even at the property in foreclosure, can be intimidating. After viewing one of our properties, please contact your bank or a bank listed on the Financing Tab, we work with numerous banks in help to secure financing for our properties. Naturally, it’s always best to work with a professional who has strong online capabilities and is recognized by the National Auctioneers Association, the auction industries most recognized trade organization. You may also send a representative to bid on your behalf by signing over temporary notarized Power of Attorney, which must include the buying party’s social security number and appropriate language for having authority to bid/purchase real estate. Grand Estates has sold hundreds of homes in the $1.5 million to $10 million range at absolute auctions in some of the country’s most exclusive resort areas: Aspen, Colorado; Palm Beach, Florida; Nantucket, Massachusetts; Charleston, South Carolina; and La Jolla, California, among others. Not just an agent, Repoman- Dan Rowe is a licensed real estate broker in the state of Idaho and Realtor in good standing since 1991 holding the following designations: Accredited Buyer’s Representative, Certified Residential Specialist and Graduate of Realtor Institute. Under Idaho law, your agent is required to disclose adverse material facts, work only in your best interest, perform the terms of your contract, account for all monies, keep everything confidential and protect you every step of the way. When you work with us, your property gets the kind of professional attention it deserves, aiming the spotlight solely at your property. Minimum Bid Auction – An auction performed at an announced minimum price, which is stated before the auction commences. This puts the borrower on notice that he or she is facing foreclosure and starts a reinstatement period that typically runs until five days before the home is auctioned off. Bank of America said that the foreclosure dept tech has not reviewed the short sale offer and until they do, there would not be any postponement. Also, according to mortgage financier Freddie Mac, the typical foreclosure cost is nearly $60,000. Despite headlines of the slumping housing market and increased foreclosure rate, the banks still don’t get the idea. Where marketing approaches of traditional brokerage firms can last many months or even years, the auction process takes every aspect of effective real estate marketing and dramatically compresses the sales cycle, minimizes carrying costs, and creates a single moment of competitive bidding that determines the property’s true market value. Father Time® Auctioneers have earned the Accredited Auctioneer of Real Estate D esignation AARE from the National Auctioneers Association Education Institute with training in the most up to date real estate marketing and sales strategies available today. To sign up to auction you property, complete our Free Property Auction Analysis so we can learn more about your property and advise you as to next steps in the auction process. Anyone can bid at an auction as along as they have this deposit. If an auction is postponed, the trustee should provide the new auction date. For some buyers and investors, driving by the property has also facilitated a casual meeting with the owner (you may be able to still work out a last-minute deal before the auction) or yielded a wealth of unexpected information from a talkative neighbor. Auction properties sometimes do not allow for a home inspection or even provide a view of the inside prior to the auction. To discover properties that will be auctioned off, potential buyers can check county recorder websites and foreclosure listing services. Our Multi-Parcel method of selling real estate involves dividing a property into multiple tracts and then utilizing open forum bidding on individual tracts, combinations of tracts, and then whole property. You have done an excellent job of following up after the auction with people who could not make the auction. Most auction contracts must close within 30 days of the auction date. I sauntered to the edge of the crowd, and saw a live, in-person foreclosure auction run by a company called When I got home, I pulled up their website. While buying a foreclosure is becoming much more mainstream, the true bargain hunters are finding their listings through We provide all the information and resources you need to make your home purchase as easy as 1-2-3! Ultimately, buying a foreclosure is a complex process that can result in a true bargain when done right or a terrible decision when approached carelessly. Typically short-sale homes are in better condition than foreclosed properties because the parties have found a solution before a legal foreclosure proceeding begins. Each of these scenarios has its own caveats, so be conscious of the type of foreclosure you are dealing with and be diligent with any special considerations. There are various stages of foreclosure and various types of entities that may be in possession of the property during the transaction. Follow the published starting bid on your list (which can change), and look at the position of the lien that is initiating the foreclosure. Either before the day of the auction, or on auction day, you will need to get registered with the auction company. Tax forfeiture usually lags behind foreclosure by several years — in part, because the tax-forfeiture process takes much longer. At , we believe that bringing buyers and sellers together with an easy, transparent platform yields the true value of any real estate asset, whether it be a luxury home, a multi-story Class A office building, an entry-level foreclosed home, or a self-storage facility. He blogs at and contributes to such leading sites as , the Huffington Post and Peter has also spoken before such groups as the National Association of Realtors and the Association of Real Estate License Law Officials. The overwhelming majority of foreclosure sales are conducted using a reserve, since lenders are trying to capture at least a minimum amount of money to offset their losses. But there are some inherent risks involved in buying a foreclosure home—like the inability to do a thorough internal inspection. First, there are short sales or pre-foreclosures , deals where an owner who can no longer afford the property tries to work out a purchase with a buyer, subject to the approval of the lender. United Kingdom : Foreclosure is a little used remedy which vests the property in the mortgagee with the mortgagor having no right to any surplus from the sale. Foreclosure in the People’s Republic of China takes place as a form of debt enforcement proceedings under strict judicial foreclosure, which is only allowed by law of guarantee and law of property right. Australia and New Zealand : Foreclosure has been prohibited by law in New Zealand for well over a century. In this case, the court overseeing the foreclosure process may enter a deficiency judgment against the mortgagor. In most situations, insurance requirements are sufficient to guarantee that the lender gets some pre-defined percentage of the loan value back, either from foreclosure auction proceeds or from PMI or a combination thereof. Time from notice of foreclosures to actual property sales is dependent on many factors, such as the method of foreclosure (judicial or non-judicial). In a foreclosure proceeding, the lender also bears the burden of proving they have standing to foreclose. A debtor may also challenge the validity of the debt in a claim against the bank to stop the foreclosure and sue for damages. This protects the creditor if the attempt to stop foreclosure is simply an attempt to escape the debt. Lenders may also accelerate a loan if there is a transfer clause, obligating the mortgagor to notify the lender of any transfer, whether; a lease-option, lease-hold of 3 years or more, land contracts, agreement for deed, transfer of title or interest in the property. Foreclosure by power of sale, also known as nonjudicial foreclosure, is authorized by many states if a power of sale clause is included in the mortgage or if a deed of trust with such a clause was used, instead of an actual mortgage. The foreclosure sale is on Wednesday morning at 10 AM. You can call the public trustees office on Wednesday before the sale to see if any properties you are interested in are still going to auction. We stopped buying at the foreclosure sale last year, because competition has increased, pushing prices too high. The riskiest are the local foreclosure sales, because they require the quickest payment with the least amount of due diligence available. The auction or sale starts with the auctioneer asking for an opening bid. An auction needs 2 buyers to be successful, we at Dustin C. Snyder Auctioneer LLC. This form can be printed out and completed prior to the auction. Inspect the Property – we recommend a visit prior to auction day. Doerr Auction & Realty, Inc. Generally, a public auction is for sale by owner. Here are a few pointers on buying a property at auction. On auction day the registration period usually begins from 30 minutes to two hours before the scheduled auction time. Therefore, we are committed to providing you with a clear and concise understanding of the property being sold, the terms of the auction and the auction process. As leaders in the auction industry, we adhere to a strict Code of Ethics, which spells out our obligation to properly inform buyers during the marketing campaign whether the auction is absolute or with reserve. Please remember, all auction properties are sold AS IS”, and by placing a bid at public auction you are entering into a binding agreement to purchase real estate…If you do not understand, please do not bid. RealtyTrust Auctioneers hold public, oral auction on the premises of the properties being auctioned. Sellers can increase buyers’ interest in the property by providing more information about the property before the auction. Thus, by choosing a minimum bid auction, sellers may limit the number of buyers who are interested in the auction. The down payment is required the day of the auction unless bidding on the online platform, if your bid is the successful high bid on auction day, the down payment is required, and is held in our companies escrow account. We sell thousand of acres of land, numerous homes and farms at auction. A huge benefit to offering property in an online auction is the asset’s exposure to a large marketplace. Much like a traditional listing, there will be property inspection opportunities during the online auction process that will be facilitated by an agent or broker. On auction day, there is no substitute for experience. Our website is incorporated into the official Treasury site, CWS is not affiliated with any other auction information services, seminars, or publications, and we never charge a fee to access these auction listings. Certain real properties may be offered for auction on the Internet. Many states have a period of time after the auction during which the final sale and transfer of ownership must be approved by a court. Don’t pay too much for a distressed property or make the mistake of making improvements on a property before you are sure it is yours, even after a successful bid at auction. It’s always wise to contact the auctioneer on the day before the auction or the day of the auction to determine if it will still take place as planned. It could be difficult to back out of your bid later, depending on the terms of the auction. The buyer who ultimately wins the bid at the auction is the only person whose check will be deposited. Do your research on what you will need to participate in the auction. Therefore, it pays to attend a large auction and learn the buying process. Wise noted million-dollar properties are sold every day at auction. Others are on the auction block because the owner needs to sell by a specific date, such as in the case of a job relocation. Of course, for buyers, there are deals to be had when buying a property at an auction. Setting a reserve, on the other hand, requires the auction to reach a certain amount or there’s no sale. Selling your home through an absolute auction means the highest bidder gets the home no matter what the bid. Others charge the buyer an auction premium, usually 10 percent. A good advertising strategy can make the difference between a successful auction and one that flops. Another way is to look in your local newspaper for the regional auction firms that do the most business in your area. Some people still associate auction sales with distress, but auction professionals say these days that’s absolutely not true. And on auction day, potential buyers must be prepared to write a check for the remainder of the 10 percent deposit should they have the winning bid. Qualified buyers are able to preview a property by appointment starting five days before the auction. Myth #7: If the property being auctioned does not sell, it’s more difficult to attract potential buyers after the auction whether in the traditional market or another attempted auction. So although there are costs that may be a little higher in an auction than in a traditional sale, the rapid results that an auction can bring often end up saving the seller even more in carrying and maintenance costs of a property they need to liquidate. On the day of the auction, the auctioneer will arrive at the property at least one-half to one hour before the auction time. Although the auctioneer does not require that you are pre-qualified for a loan, it may be helpful for you to know your limit before attending the auction. See the auction advertisement or call the auctioneers for specific inspection times. In the case of a foreclosure, the auctioneer does not have access to the property before the auction, but the property may be opened when we arrive to conduct the auction. Generally, the property will be open for inspection on the day of the auction, typically one-half to one hour before the scheduled auction time. In many cases, properties offered at auction are in similar or better condition than properties currently listed for sale. Auction properties may range from excellent condition to poor condition. Additional terms may be announced at the auction or may be posted at the sale site. Your responsibilities as a purchaser are advertised prior to the scheduled auction date and will be read by the Auctioneer at the time of sale. Make sure you clearly understand the terms and conditions of the auction before making a bid (these will be included in the bidder packet you receive when you register). Every auction that I know of has a buyer’s premium of 5 percent. Buyers are required to do most of their due diligence prior to the auction so many already have put a lot of effort into an auction home before the bidding even starts and losing means all that time was wasted. Any buyers who show up to the auction are automatically vested. Many people think they’re going to get a steal of a deal at auction and they don’t do their math beforehand. You and your party will be escorted to the closing room immediately after the auction to complete all necessary documents. Our properties are sold without contingencies, so you will need to make arrangements to have financing in place (if you require it) before the auction day. When you make the decision to attend one of our auctions, you will know that the property will sell on auction day. As luxury leaders in the auction industry and members of the NAA, we recognize and adhere to their Code of Ethics, which spells out the auction company’s obligation to properly inform the buyers during the marketing campaign whether the auction is absolute or with reserve. When you see an advertisement for an auction, make sure that you understand the difference between an absolute” auction (an auction without reserve) and a reserve auction, as sometimes properties are subject to meeting an undisclosed reserve amount before the auction company can sell the property. As a buyer, it is important for you to know that at an auction conducted by Supreme Auctions, you will be provided with all the information you need in preparation for the auction day. If you feel a need for your bid to be totally anonymous, discuss this with the auctioneer prior to the auction beginning. Also there are NO other contingencies in the sales contract such as a) property inspection after the auction; b) the sale of another property before settlement can occur, etc. Any financing arrangements will need to be done prior to the auction day. Contingencies – All properties are sold As Is” and NOT subject to the buyer obtaining financing after the auction. Usually $5,000 but can be more or less, see each specific ad. This is required for all registered bidders at the auction. A valid government Photo ID is required at the auction. A properly implemented auction marketing campaign will create significant activity which should translate into a high level of participation at the auction. Property will be offered at auction and the final bid is subject to the owner’s approval. As a seller you can set the terms of the auction – Absolute, Minimum Bid or Subject To Confirmation. Our auction company has worked with brokers and with auctioneers across the country to bring satisfied buyers and sellers together. Both Sellers and Buyers appreciate the benefits of the auction method. Many real properties are candidates for being sold at auction. Auction reduces the burden of negotiation process from the sellers mind. It should be ensured that the marketing campaign of the auction event focused properly to have a high impact. It is necessary to make sure before the auction that the buyer is financially secure so that the seller will not have to wait for receiving the entire payment. Also the property owners have absolute control on the auction sales process. Auction opportunity arises when a seller’s mind is auction oriented with a hope that the property will fetch a fair market price. This premium is always disclosed before the start of the auction. The way in which money exchanges hands depends on the terms of sale set up by the seller in the auction; sometimes an auction may require the winning bidder to pay a buyer’s premium, which is an amount of money in addition to the winning bid that the buyer must pay. Winning – The winning bidder at an auction will be notified through whatever medium is specified by that particular auction. Every auction has Terms of Sale, which an investor should read and understand before registering to bid. Registering – The first step in performing an auction is to register to bid in whatever venue the auction requires. After the Auction – Since a winning bid on an auction is not a legally binding contract, once a winning bid has been accepted, you must make sure that the proper legal channels are followed to transfer ownership of your property to the winning party. It is also important to make sure that the winning bidder in your auction is notified in a timely manner, so the transaction can be completed as quickly as possible. Setting up an auction includes deciding what type of auction to perform and how long it will run, estimating the value of the property, and determining where you wish to advertise your auction. If you are a seller, an auction can expose your property to a number of buyers who are prepared to offer a fair price for the property. Depending on the type of auction and the preferences of the seller, the auction type used in any situation could be any combination of these, and it is important to find out what kind of auction best fits your preferences before auctioning or bidding on a property. The auction goes through as if without a minimum price, but if the unannounced reserve is not met, there is no winning bidder for that auction and no one receives the property. Reserve Auction – An auction where the minimum bid is not published, but the seller privately determines a minimum bid which he is willing to accept on the property (reserve). For instance, a listing agent will receive different compensation than a broker who represents a buyer on auction day. Auction agreements obligate the seller to transfer title to the highest bidder in an absolute auction; the auction agreement obligates the seller to transfer title to the highest bidder that meets or exceeds the reserve price in a non-absolute offering. Auction is an aggressive marketing program that increases potential interest in and awareness of a property. A seller sets the terms and conditions of the sale, maintains control of the property throughout the auction (depending on auction type), and actively participates in the sale process. An auction generates excitement and heightens buyer interest. Creates competition among buyers – auction price can exceed the price of a negotiated sale. The winner of the auction will then receive the trustee’s deed to the property. None of these are accurate, especially when it comes to Double J Auction and Realty. Learn more about the many advantages to choosing a property auction for both the buyer and the seller in our presentation! All advertising materials will announce the buyer’s premium before the auction date. If An Auction Is Conducted On Site, We Will Allow Bidders A Final Inspection Period Immediately Prior To The Auction To Take One Last Look Around. One Of The Greatest Determining Factors Between A Successful Auction And A Not So Successful Auction Is The Confidence Of The Bidders About What They Are Buying. At Powell Auction We Provide The Service You Need To Get Results. An Auction Immediately Establishes A Fair Market Value. Whether You Are A Seller Or A Buyer, Each Auction Will Surpass All Expectations. How do I get a list of properties going to auction from the county? Sellers and lenders hire private auction companies to host auction events. You either get the list via the assigned trustee website or through wholesale auction companies for a fee. How do i get a list of properties that are up for auction on any giving day? I just came back from an auction in which i was prepared with a cashiers check made out for myself and it was rejected by the trustee. Eventhough they knew the auction date is today at noon. We can’t decide whether to hire a service to bid on the properties for us or actually try our hand down at the auction. You also need to be careful as a lien by the IRS that the property is attached to can be collected for up to six months after the auction. Without doing the proper research on a property, you could end up bidding on and winning an auction property that may have 2 liens on the property. There are some great deals to be found at the public auction but there are also some large risks. Arrange a hard money loan prior to the auction or pay cash for the remaining balance. Anyway very interested to learn how this auction ;ease let me know if you can assist me thank you. This company specializes in Maricopa County Public Auction. If you do your research and due dilligence well, you’ll find some great deals at the public auction. It is always a good idea to do your research and set your budget before you attend an auction. Be prepared if you decide to purchase at an auction, most auction proceedings happen quickly and you have little time to deliberate. An auction isn’t successful if the winning bid doesn’t close. The winning bidder-as well as every auction attendee-comes away from the experience impressed with the professionalism of the event. So if you are given a chance to inspect a home before the auction takes place, seize that opportunity! It’s important to understand that most homes sold through an auction are sold as-is. You might only have to make a down payment at the auction (as opposed to the full purchase price commonly required at a sheriff’s auction). Before the bidding begins, a representative from the auction company will explain the bidding process and the terms of sale. Upcoming events will be advertised on the auction company’s website well in advance. They can also be conducted by private companies, such as the Williams and Williams auction company (). In true auction fashion, the home will be sold to the highest bidder. A public auction for a foreclosed home will normally take place at the county courthouse in the county where the property is located. And this is why the bidding for auction homes generally starts below market value. In fact, we encourage your attendance so you can experience a live example of the auction process firsthand. Buyers who are unlikely to close are dissuaded from bidding because of the stringent terms of auction. A: Rarely does a Cates auction purchase contract fail to proceed to closing. As is” simply means that you are not offering to make any additional improvements to the property and the buyer is bidding on and buying it in the condition it is in at the time of the auction. According to the auction terms, a prospective buyer cannot make his or her bid contingent on any outside factors such as financing or inspections. A: Everything that we sell at auction is sold as is” and non-contingent,” with a 30-day projected settlement date. Sellers are only required to invest in the advertising and expenses of their auction event. The fact that you are selling at auction does not change the market value of your property. Our sellers have desirable properties and have chosen auction as a means to expedite and control the terms of the sale. We are happy to help you determine if auction is an appropriate strategy for your seller. Complete the Free Property Auction Analysis today to so we can talk about if auction is right for you! The best way to see if auction is right for you and your property is to talk with us. We’ll consult with you regarding the process and provide a recommendation for your property. The Auction vs. Ordinary” section will give you a side-by-side comparison of auction and a traditional sales approach. In this type of auction a minimum selling price is established prior to the auction that is acceptable by the seller. The main advantage to the seller in this type of auction is they are not obligated to accept a price other than one that is entirely acceptable to them. By utilizing an auction with reserve the seller can be flexible in accepting or rejecting all bids. An Auction with reserve means that the property is being offered subject to the seller accepting or rejecting the high bid. The main advantage of an absolute auction is that it generates maximum response from the marketplace. There is no minimum and the seller cannot reject the highest bid at the auction. A property that is offered at absolute auction means that the property will absolutely sell to the high bidder regardless of the price. Prior to the auction we will discuss your goals and specific needs. Remember each and every auction is different, so it is impossible to assume that your auction will be exactly like the one that you attended. Certainly, we encourage your attendance and would be pleased to have you experience a live auction process firsthand. The amount of deposit will clearly be spelled out in auction literature. This money will be refunded to you at the end of the auction if you are not the successful bidder. Most realtors do not have auction experience and will probably steer you away from using an auction. Very Important; an auction will not succeed if good and proper advertising is not used. The auction company will itemize where they spent this money and return all unused deposits. It is also the biggest reason that sellers choose not to auction their home. You absolutely must do everything possible to make your auction succeed, with the 2 most important items being selecting the right company and the right type of auction. Your biggest expense would be losing money on a failed auction. It is very important to know how to start the bidding at an auction properly, if not there will be few if any bidders. The most important items when selecting an auction company to sell your residence or property is experience and results. The seller usually makes the most money on an absolute because more buyers attend and as a result the price is bid up higher with the auction process. A good auction company will not start the auction unless they feel comfortable that there are buyers signed up that will bid at least a fair price for the property. The public does not like it because they could go through the entire auction process and have the winning bid and later find out it does not meet the reserve price. Ii. Disadvantages: Buyers may not attend auction because they are not certain they will get a good deal on the property. No one knows this price except the seller and auction company. Reserve: The seller tells the auction company they will not sell this property for less than a certain price. Bidding at an auction can be intimidating, especially if you’ve never done it before. Arrive at the auction location early and locate the auctioneer as quickly as possible. Call the trustee the day before or the day of the auction to check one last time if the auction has been canceled or postponed. A reasonable purchase amount at auction is at least 20 percent below full market value, and much better deals are often possible. It’s also important to determine the bid amount even in states where you don’t need to bring the full amount to the auction. In most states, the public auction clears out any junior liens, but there are exceptions such as tax liens, which typically will continue to be in effect after the auction. If there are outstanding liens on the property, the winning bidder at the auction may be responsible to satisfy these liens in some cases, so it’s important to check for any liens and the priority of the liens before you bid at the auction. RealtyTrac subscribers have access to the opening bid amount and the estimated market value for properties scheduled for auction. It’s important to know this amount so you can determine if the auction represents a potential bargain purchase when the opening bid is compared to the property’s market value. Of course, the best education will come from simply observing a local auction. In some states, bidders are required to bring the full amount they want to bid in the form of cash or cashier’s check to the auction. If the auction location is not listed on RealtyTrac, you can typically get that information from the trustee or the county clerk. After a property is scheduled for auction, the owner has a chance (typically less than a month) to stop the auction by paying the amount owed to the foreclosing lender. A good tracking system is important since most successful auction buyers pursue several properties sometimes over a period of several months. We use this type of auction to let the buying public know you are now willing to take less than previously advertised. The only time we suggest a seller use this type of auction is if they have had the property on the market and overpriced. Minimum Bid Auction: In a minimum bid auction there is a required opening bid that is the seller’s minimum selling price. If you are a serious buyer you should make time to attend a reserve auction. Just because a seller doesn’t choose a absolute auction doesn’t mean they want more than their property is worth. The drawback to this type of auction is that a potential buyer might not take the time to come to the auction because they assume the seller won’t accept their high bid. If on the day of the auction they decide to accept less they can, but they do not have to. As in an absolute auction, when all interested parties attend an auction the final bid is the current market value. They set their minimum selling price when they sign the auction contract. Reserve Auction: In an Auction with reserve, the seller reserves the right to reject the final bid. The reality is that when all interested parties attend an auction the final bid is the current market value. Absolute Auction: In an absolute auction, the property sells to the highest bidder regardless of price. The right of redemption is a provision that allows the seller of the home to re-acquire the property, even after it is sold at auction. Proof of funds can be as simple as providing a copy of a cashier’s check to the auction trustee before it begins. In the auction with reservation format, the seller of the auctioned home may reject the sale for any reason. In the absolute auction format, the home is sold to the highest bidder, regardless of the price. The county in which the auction takes place uses one of several auction formats. Familiarize yourself with the auction terms ahead of time to avoid any unpleasant surprises. Similarly, the auction could have a hidden reserve price that sets the limit on the minimum acceptable price. More or better financing options may be available by purchasing a bank-owned property the traditional way, instead of at an auction. Each auction company/county government has its own requirements for payment. Buying a property at auction often requires a lot of cash. Auction properties aren’t always great deals, but the potential to get a great deal is such a big draw that, for many people, it compensates for the numerous potential drawbacks of buying an auction property. Some auction companies have open houses so potential bidders can walk through the properties ahead of time. What can potential bidders learn about auction properties before bidding? The starting price of the auction may be the balance remaining on the mortgage , or may be a lower amount designed to spur bidding. If the homeowner doesn’t pay the balance owed or renegotiate the loan with the lender, the home can be put up for auction. Please see the auction details for the sale you are interested for bid deposit requirements. Please bring your driver’s license or other photo ID to the registration tables on auction day. A: The auction is open to the public and there is no admission fee required to attend the sale as an observer. A proxy may also be limited by the bidder in the total amount to spend on items in a multi-item auction. EBidding – electronic bidding, whereby a person may make a bid without being physically present at an auction (or where the entire auction is taking place on the Internet). They generally will call the auction using auction chant. Auctioneer – the person conducting the actual auction. Auction block – a raised platform on which the auctioneer shows the items to be auctioned; can also be slang for the auction itself. In an ascending open auction it is considered important to get at least a 50-percent increase in the bids from start to finish. In South Africa auctioneers can use their staff or any bidder to raise the price as long as its disclosed before the auction sale. (The bidder does not want to win this auction, but he or she wants to make sure to be invited to the next auction). Each type of auction has its specific qualities such as pricing accuracy and time required for preparing and conducting the auction. One of the most interesting bodies to look out for at auction is HM Customs & Excise who may be entering at auction various items seized from smugglers, fraudsters and racketeers. 46 A government auction is simply an auction held on behalf of a government body generally at a general sale. A: Closings generally occur within 30 days after an auction. Feel free to have your legal advisor review the contract prior to the auction date. A: It is very important for auction buyers to be educated and informed regarding the auction process. If a premium is being utilized, it will be detailed in the auction catalog. A: An auction where the property is being sold with a reserve means that the property is being sold subject to seller confirmation. If you are the highest bidder for a property, you will be required to make a bid deposit on auction day. A: If financing is required to complete a purchase, we suggest you arrange and pre-qualify with a lender prior to the auction date. See the information listed in your specific auction catalog to determine this. A: The speed of the marketing process is the number one reason people choose an auction sale. A starting bid comes from qualified bidders who attend the auction. However, it is important for you to be informed and prepared prior to auction day. The fact you are doing an auction does not change the market value of your property. On auction day, the market will determine what value is acceptable for your property. A part of that process is to help you decide if the auction process is best for you. There are great differences in the marketing of a voluntary, by-choice auction versus a distress auction. A. The best way to sell is to auction the property absolute. Ultimately, the auctioneer manages the auction process, and the broker gets paid without having much to do with the process. A. No. Our auction staff is composed of specialists who deal with this situation daily. A. For sellers, there are many advantages that are built into the auction process, but the number one reason is the speed of the marketing process. The auction begins promptly at the appointed time with the Auctioneers opening remarks. One common misconception about auction companies is that they compete with local Brokerages. Many of our friends attended the auction and all were impressed by how well it went. Thank you especially to David, Devon and Denise during and after the auction. From the very beginning they were there for us and available to help out and make the auction a success. I want to compliment your organization and each of your staff for the excellent job they did at the auction for Rental World. I am very satisfied with your professionalism and efforts in regards to the auction on my property. I had checked with three other auction companies prior to choosing your service. If you are not the winning bidder your un-cashed deposit check will be handed back to you before leaving the auction location. Your information is not sold or rented to anyone else and is only used to provide updates about the auction event. IF YOU DO NOT WIN THE AUCTION YOUR UNCASHED DEPOSIT CHECK IS HANDED BACK TO YOU AT THE AUCTION! At the end of the bidding the winning bidder will be required to sign the auction contracts and endorse the bid deposit check. All deposits are held by the auction staff during the bidding process. On auction day the bid deposit is required to prove you are qualified to complete the transaction. Sellers who enter their property in the auction are very motivated and willing to review any and all responsive bids placed prior to the auction. Yes you may bid before auction day it is becoming more and more popular especially if you really like a property and are afraid it might go beyond your reach on auction day. Ask the auction staff if there is a preferred lender for a particular auction event. Yes the financing procedure is basically the same for an auction as it is for any other property. In an auction it really does not matter where you open the bidding in many cases we open the bidding at the deposit amount. The second time a property does not sell at auction is when a seller is greedy and wants more than a property is worth. In this day & age most people have a mortgage against their home and simply do not have the cash on hand to payoff their home loan before auction day. Experience has shown that people who have inspected a property but cannot attend the auction for one reason or another have been great bidders. Bidding at auction is a legal and binding contract to purchase on the published terms and conditions. The Industry Standard auction process is designed to be simple, straightforward and very fair to all of the parties. Also remember, just as we wrote above, the auction process is not for everyone. The auction contract between Buyer and Seller usually commands a 30 day closing with time being of the essence. Meaning, the seller typically pays all or most of the out-of-pocket marketing expenses associated with your auction sale. Understand that the lender acquired the distressed property at the auction because no one bid higher than the default amount. Make sure there are no surprise claims pending against the home that you may have to deal with after the auction. Dealing with banks to loan you money for an auction home is not a fun situation. In California, you must pay in full at the auction steps. You didn’t expect to go to a bank and ask them for a mortgage to fund your auction purchase, did you? Pick out one week and go to the auction every morning. Lender Processing Services (LPS) explains that the number of foreclosures in the United States has steadily risen for five straight months in a row and that the current foreclosure inventory in the United States is about 7.7 times the historical average. Some auction houses allow a period for loan processing. Buyers typically pay a sales commission above the purchase price to the auction firm. Buyers arrive at the auction and register to bid, when preregistration isn’t required. Auction firms also sometimes require buyers to bring loan-qualification or bank-guarantee letters. Buyers register to bid prior to the day of the auction at some sales. Some sellers hope the auction process increases the final sales price when bidders compete for the property. Sellers contact an auction company directly, and sign the auction sales agreement, typically to avoid buyer negotiations. The prospective bidder may even bring an inspector with him in many cases to make sure of the condition of the property before attending the auction. The auctioneer will widely advertise the auction and hold open houses, so that any prospective bidders can make sure of the condition of the buildings before bidding at auction. The bank will usually have a representative at the auction to protect their interest. A court representative or professional auctioneer in many cases may conduct this type of auction. Determine what you’re willing to pay before the auction and don’t bid any higher. Remember that your bid at the auction is absolute; there is no backing out, there is no home inspection waiver. Drive by the listed auction properties located within those neighborhoods. Bidders also need to be aware that large auction firms, such as Williams & Williams and The National Auction Group, charge either a flat fee or percentage of the sale price for their services. The successful bidder will sign his check over to the auction company while losing bidders simply redeposit their checks. This is to show the auction firm there is a legitimate intent. Find out requirements – Contact the attorney or auctioneer to determine how much money you need to bring to the auction as this varies from state to state. The reasons for foreclosure and tax-forfeiture are often the same — owners fall into financial trouble because of job loss, a sudden and expensive medical crisis, unexpected property expenses, and other reasons. The best approach is to get as much information as possible before in the auction. However, if you attend a reserve sale and the lender takes title, then speak with the lender after the auction about an REO purchase. The auction company wants to be sure that you have the funds to close the transaction. Some bidders drive by the property just before the auction to ensure that its condition hasn’t changed since the disclosure papers were written. If the highest bid at the auction is insufficient, the lender then gets title to the property and holds it as a bank-owned (or REO) property. You can have an attorney do a title search for you if the auctioneer does not provide one, or you question the credibility of the auction company. Some auctioneers give out auction paddles or bid cards for bidders to use. Check with local realty offices to find out if they have listings for area houses up for auction. An attorney can help you find out all terms and outstanding debt attached to the property before the auction. You should not attempt it without an attorney’s help unless you have experience purchasing property at auction. Some properties may not allow tours before the auction is sold. Keep in mind many properties are at auction because the homeowner had financial troubles. If the auction allows financing, become pre-qualified before you start bidding. Foreclosure by judicial sale, more commonly known as judicial foreclosure, which is available in every state (and required in many), involves the sale of the mortgaged property under the supervision of a court, with the proceeds going first to satisfy the mortgage; then other lien holders; and, finally, the mortgagor/borrower if any proceeds are left. Even the same site can have different terms for different properties going to auction. Some states require proof of funds before the auction. The auction is conducted at 10 AM and all bidders must register before the auction in person at the public trustee office. With an auction property you will usually not get your earnest money back if you back out of the contract for any reason. Looking to buy? To a homeowner, these can be the most beautiful words in the world, especially in a market like this one where selling property the conventional way is often a prolonged pain in the patootie. Myth #1: All properties being sold via auction are foreclosures and/or in bad physical and financial condition. Commitment to Sell. Auctioning off a piece of land, real estate, rental property, and more can benefit both the buyer and the seller, depending on whether the auction is reserved or absolute. It’s just another day at the steps of the Maricopa County Courthouse located at 201 W. Jefferson St. in Phoenix, AZ. The third session of the trustee sale also known as the public auction starts at 2 p.m. About a dozen investors wearing shorts, t-shirts, tennis shoes, flip flops and baseball caps gather around the youthful-looking auctioneer seated at the corner of the outdoor courtyard of the Maricopa County Courthouse building. It can be an exciting and sometimes overwhelming process to find and purchase a home. Before a property can go to auction, it must be scheduled and advertised. An aggressive marketing program is critical to an auction’s success. An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the highest bidder. David and Denise Stutenkemper and their associates were extremely helpful to us when we had to sell my brothers home and personal property after his sudden death. Imagine selling everything in a house, for market price, within 4 hours. Note from Paula: This is a guest post from my friend Jason Hull, a financial planner, landlord, world traveler and West Point grad. If you’re in the market for a new home, foreclosed properties can be really appealing. Get our free weekly newsletter and MoneySchool: Our FREE 7-day course that will help you make immediate progress on the money goals you’re working toward right now. While this is unfortunate for those who lose their homes, the opportunity to purchase a home at a highly reduced rate is very attractive to prospective buyers. Getting a great deal on houses is a key to my real estate investment strategy. When you attend a RealtyTrust auction, you will know that the seller is truly committed to selling the property on sale day. Bidders are encouraged to conduct due diligence or do their homework, inspect the property, area, etc. Our goal is to provide buyers with a straight forward, uncomplicated and transparent service to help you prepare for an upcoming auction and make an informed decision. You will also notice our commitment to helping you evaluate a property and become an informed, confident bidder. If you see a property for sale in a RealtyTrust auction, you can act with confidence that it meets the high standards our buyers and bidders have come to expect. Bank property sales typically require a final review and acceptance by the bank’s managers. RealtyTrust’s sellers reserve the right to accept or reject any bid regardless of how that offer is made, whether or not it exceeds the reserve price and whether or not it is the highest bid offered. Once an opening bid is received or called out, the auction process begins and the bidding will advance above the opening bid in increments established by the auctioneer. If you want them to move, they will, after you convince them to do so. Which may simply be after a conversation, or after evicting them through the court if necessary. My DD was limited to a title search and a drive-by in most cases. As for inspections, most of the ones that I bought were occupied so there was no opportunity to see inside, much less conduct inspections. Probably most of the cities an at least half a dozen counties. If the title is particularly messy there could be instances where you would have to initiate a quiet title action to seek to perfect the title. It’s quite possible the title you receive will be just fine or easily correctable by paying whatever liens survived the trustees sale (which may or may not be a big deal). NA Onyido It’s not that you don’t GET clean title, you just don’t get a GUARANTEE of clean title. What kind of research and due diligence to you do as prep? I appreciate the info on the title insurance @ quitclaim deed….I personally like to stay away from the quitclaim deeds because I have little knowledge on them. In those cases, bidding requires the same level of due diligence (and title examination) as bidding on the courthouse steps. If you do plan to bid, most of the sales are cash (some allow financing and the listing will say so) and many don’t offer title insurance and are conveyed by quitclaim deed. Frances holds a Bachelor of Arts in social studies education from the University of Wyoming and a Juris Doctor from Baylor University Law School. Heather Frances has been writing professionally since 2005. While this gives sellers more control over the purchase price, prospective buyers may not invest much time into researching the property since they have no way to know whether they will actually get to purchase it even if they bid the highest price. The seller has a specified time, usually no more than 72 hours after the close of the auction, in which to decide whether he wants to accept that price for his property. The seller does not publish a minimum bid, though he may have a minimum in mind. At a reserve auction, or auction subject to confirmation, the highest bid is actually considered an offer so the seller gets to choose whether to accept or reject the winning” bid. However, if no one bids over $100,000, the property remains unsold. For example, if a seller thinks his property is worth $120,000 and he sets the minimum at $100,000, he is guaranteed to receive at least $100,000 as long as someone bids over that amount. This reduces the risk for the seller since the sales price is guaranteed to be above a certain set minimum. Typically, this type of auction creates the most response from the marketplace, so it is a popular style among sellers, banks and government agencies. In an absolute auction, the property is sold to the highest bidder no matter what price that highest bid is. This guarantees the property will sell, so there may be more excitement and participation from buyers. We prepare a complete bidders packet, provide a sellers disclosure, and as much pertinent information as possible. Each auction falls under separate terms and conditions, please read the terms and conditions of the property you may be interested in. We may sometimes advertise a property with a starting bid, if we do so then the property will be sold at that price or higher. If the terms state absolute, then the property will be sold at any price. If under the terms and conditions state to be sold under owner immediate confirmation, meaning there is a reserve on the property then the property is being offered with a reserve. At the time of closing we deliver the down payment to the closing company, and in turn they take this as part of the purchase price. This would be paid as part of the purchase price, at the time of closing. When utilizing a buyer’s premium it will be advertised under the terms and conditions of the sale. It is added on to the buyer’s price, for example, If you would pay $100,000, and there was a 3% buyers premium your total purchase price would be $103,000. The below banks are familiar with the properties and values of the properties we sell, they have a strong understanding of the market price for our properties in our selling area. The bank you are working will be able to assist you with the approximate value of the property we are selling, in doing this they can guide you through the max bid you can make, give you estimated closing costs, and determine your qualifications. We can assist in helping determine the market value of a property you are interested in bidding on. Please take the time to ask us our evaluation and thoughts on the market value of a property we our selling. A property is only worth what a buyer is willing to purchase a property for, and what a seller is willing to sell their property for…hence the selling price. Please fill out the registration form, if you are the high bidder you will be required to wire, or send a check as a down payment the next business day, after bidding is completed and you are notified as a high bidder, approved by the seller. We have made it very easy with a link to become preapproved. It won’t take long to recognize whether they know what they are talking about. If you don’t already have a relationship with a professional auctioneer, interview three or four before creating a relationship. However, if the reserve price is not met, the interest generated by the online event should still allow the agent or broker to facilitate an expedited sale. This creates traction with prospective buyers and initiates a negotiation. In some cases, someone may even make a pre-emptive offer without ever visiting the property in person. The allotted bidding time is often extended as long as competitive bids are coming in. Virtual tours of the properties are always available online. Once each bidder has been given a bidder identifier or bid number, they may observe the auction action or participate from any remote location where the internet is available. Once the auctioneer has received the deposit (either by overnight funds or wire transfer), a given bidder is qualified to bid. Then, depending on the terms and conditions of the auction, a deposit amount will be presented to the bidders. Having a well-trained professional on-site is reassuring to prospective bidders and serves as an important part of the sales process. To make up the difference on the remaining balance, the seller cannot offer the property absolute” without fear of litigation. In most cases, buyers and sellers will be able to download a complete due-diligence package from the auctioneer’s website. In regard to property inspections, the due-diligence process between the online auction and a conventional real-estate offering is largely the same. Simply open your mind to seeing and doing things different, for the benefit of both your sellers and, ultimately, yourself. Depending on how long you have worked in this industry, the word auction” may bring a wide variety of preconceived notions to mind, but don’t let it alarm you. Please remember that these platforms are sales and marketing tools that are readily available to all brokers and agents today. Take a few moments and view the reference material we have provided for you in the LEARNING CENTER section of this website. If they become the successful bidder, this payment is non- refundable. Potential buyers must register to bid with a certified bank check. While some professionals may observe an auction and think it is a simple process, most lack the skill and experience to offer your property and obtain top dollar. There is one chance for success and you deserve the best. And when considering auctioning your real estate, the same effort should go into the decisions you make concerning the company you choose. When shopping for services, it’s important to do research to get the best. The Department of the Treasury has designated CWS Asset Management & Sales (CWSAMS) as the prime contractor responsible for the maintenance and sale of seized and forfeited real property. Most property is seized due to smuggling, drug trafficking, money laundering, credit card fraud, food stamp fraud, mail fraud or other illegal activity. Employees of the Department of Treasury and members of their immediate family are prohibited from bidding on any real property. A real property sales contract may be cancelled by the Government after review of records. Forfeited real property will not be sold to the defendant or person(s) acting as his/her agent. You must be over 18 years old and cannot be the party or agent of the party from whom the property was seized. If you do have a broker, all arrangements, including any fees and broker commissions, are strictly between you and the broker. A Special Warranty Deed requires the Government to defend the title against defects or clouds arising from the forfeiture process and to indemnify the buyer. The type of deed will be identified in the Terms of Sale. Sometimes, title is conveyed with Special Warranty Deed or Quit Claim Deed. Back taxes, liens and/or other encumbrances will be paid by the Government. Unless stated otherwise, a clear title will be conveyed via a Government Deed. Failure to obtain financing does not relieve you of your obligation to close on the property. You are strongly encouraged to investigate and secure financing arrangements, if required, prior to attendance. Title of the property will remain with the Government and you will forfeit any deposits you made. If you cannot make deposits or final payments within the time frames specified in the Terms of Sale, you will forfeit any right and interest in the property. A link to the Terms of Sale can be found on each property’s webpage. Please check the Terms of Sale for the specific instructions regarding payment. Forms of payment that are not accepted include: Personal or business checks, money orders, cash, credit cards, bank letters, or letters of credit. Cashier’s or Certified checks made payable to CWS Marketing Group, Inc are the only form of payment accepted. Closing costs including, without limitation, transfer taxes, documentary stamps, recording fees, and escrow fees will be paid by the Buyer and Seller in accordance with the customs of the county in which the property is located, unless stated otherwise in the individual Terms and Conditions of Sale. Only the seller may, at its discretion, exceed closing beyond 30 calendar days. Closing is usually required within 30 calendar days of sale or sooner. You can find the Terms of Sale linked to the description of each real property on the treasury website. The Terms of Sale are the specific guidelines and rules that each bidder is required to follow. In the event the high bid does not reach the minimum/reserve bid, the Government may open negotiations with the high bidder. Occasionally the Government will establish a minimum/reserve bid, this minimum/reserve bid is not released to the public. However, the Government reserves the right to accept or reject any and all bids. Generally, the Government does not place a minimum/reserve bid on items. We do not have the capability to refund a portion of a deposit check. However, if you do not win all of them, you will need to leave that check as an initial payment(s) toward the final price of the property or properties. You have a choice of having multiple checks or one check totaling the sum of the deposits needed. In most cases, they either void” the cashier’s check or stamp it with not used for the intended purpose” and will re-deposit the money in your account. You should check with your bank on their procedures for re-depositing checks. If you are not the winning bidder, we do not collect your deposit. Personal or business checks, money orders, cash, credit cards, bank letters, or letters of credit will not be accepted. The successful bidder’s deposit will be retained as the initial payment for the property. If you are not the high bidder or second high bidder, we do not collect your deposit. The Terms of Sale will explain deposit requirements for each property. In most cases, the second high bidder will also be required to make a deposit. Immediately after the bidding, the high bidder will be required to provide their earnest money deposit check. Cashier’s checks must be made payable to: CWS Marketing Group, Inc. To qualify to bid, photo identification and a cashier’s check deposit (amount varies) must be presented at registration. The final price of auctioned properties depends on public interest. In completing the registration process, the bidder agrees to comply with all electronic deposit requirements and acknowledges full and complete understanding of all Terms and Conditions. Persons wishing to participate in electronic bidding are required to register online at the designated website. At their own expense, potential bidders may have property inspectors examine the property during regularly scheduled open houses. Absolutely no access to property is allowed without prior authorization. Property will be available for inspection at the times specified. Failure to inspect property shall not constitute cause for cancellation of sale. The bidder is invited, urged, and cautioned to inspect the property prior to submitting a bid. To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader® You are leaving the U.S. Department of the Treasury public web site. If you need any help or clarification, ask a bid assistant. Failure to do so or bidder misunderstanding will not be reason enough to cancel a sale. This creates a delay of several weeks before you may take possession of the property. People may not be who they appear to be, and their purpose could be to drive up the bidding to a higher level than expected, so as to knock out the less experienced bidders. Ultimately, you don’t want to get trapped into outbidding people with more experience if the bidding gets really intense. That is where the research into properties that could meet your needs for price and other considerations will come in handy. Realistically, you go into the bidding process knowing the maximum amount you can afford to spend, always with the expectation you could be outbid. In a bidding war, you could expect the final successful bid to be near or at the listed price of the property. If you are participating in a large auction, you may have to go through the process of getting a bidding card and then be prepared to wave your card to the auctioneer to signal your bid amount during the actual bidding time. Inspection helps you determine the condition of the property prior to purchase. That would be critical for buyers considering a typical as-is bid on a distressed property. The best part about the bidding process is the actual competition between bidders, which occurs rapidly, unless bids will be submitted and considered at a later time. At a large auction, expect the auctioneer to collect a flat fee for his or her services or simply a percentage of the transaction. Ask the person offering the auction, either the auctioneer or the seller’s attorney. For example, you might have to bring a certified check with a minimum amount of $5,000 or a similar sum to demonstrate your qualification as a legitimate buyer. Watching the game players as they perform their roles could help you feel more prepared as a prospective buyer of a foreclosed property. It’s always up to you to feel ready to attend, armed with your research. An auction could take place at your local courthouse, in a rented space for sales of multiple properties, or at the property location itself. A good auctioneer will make sure all potential bidders are clear about what’s going on. Don’t be afraid to speak up if you are uncertain about what’s happening. Also, the sale does not depend on things like inspections, financing, appraisals, etc since the property is sold as is” with no contingencies. First, the property will be sold at a specific time instead of waiting days, weeks, or months for a buyer to make an offer. Some auctioneers also accept sealed bids in advance, telephone, smartphone and Internet bids, which Longly at the auctioneers association says works well for highly desirable homes in attractive settings. These ballroom” sales can attract hundreds of potential bidders who get the fever and bid until they win a property. Some auctioneers believe they get better prices if they group houses together and sell them off site. The check will be returned to non-winning bidders and forfeited by the high bidder if he is unable to close. Other auction companies – usually those that deal with less-pricey properties – simply ask registering bidders for a certified check equal to about 10 percent of the expected sale price. This ensures that a buyer can actually complete the sale. Some auction companies require that potential bidders present a letter of credit from their bank or a statement from a lender certifying that they are credit-worthy up to a given level. Before setting a reserve, make sure you understand what the no-sale fee is. That’s the price you pay the auctioneer for changing your mind and can be just as much as the price of selling the property. They may not like it, but that’s what it is,” says Bynum of Williams & Williams. With an auction, whether there’s a reserve or not, people can have confidence that the property is selling for what buyers think it’s worth. Setting a reserve gives sellers an option and is fairer in an unstable sales environment, believes Jim Tomaszewski, co-owner of JM Auction Services in Adrian, Mich. Ohio Auctioneer Rose prefers an auction premium because it places the burden of payment on the buyer. Chris Longly, spokesman for the National Auctioneers Association, says some auctioneers believe the auction premium approach discourages bidders. And some split their commission between the buyer and the seller – for instance, the buyer pays a 5 percent auction premium and the seller pays a 5 percent commission. Some auctioneers charge the seller between 6 percent and 10 percent of the sales price as a commission. There are many legitimate ways to handle auction fundamentals, so find an auctioneer who does business in a way that makes you feel comfortable. It’s also a good idea to check with the Better Business Bureau, or in 34 states there’s a licensing process and a way for the public to register a complaint against license holders. The National Auctioneers Association requires members to adhere to a code of ethics. Additional auction training can’t hurt – certified auctioneers have completed a three-year training program. Find auctioneers through the National Auctioneers Association, which in December launched the first auction multiple listing service as well as an auctioneer search engine. Some national companies have extensive databases of potential buyers and use them to reach out aggressively. A locally based auctioneer may understand your market better than a national company – but not necessarily. But you also probably don’t want an auction company that mostly does multi-million dollar mansions if you own a suburban townhouse. Obviously, if you’re selling a house, you don’t want an auctioneer whose specialty is cattle or antiques. Choosing the right auctioneer is the first and most important step. The sale itself is completed in a matter of minutes and closing is within 30 to 45 days. About 11 percent of the time, auctioned homes sell for more than what the seller had previously listed the home for in a conventional sale, says G.T. Bynum, marketing director for Williams & Williams, one of the nation’s largest auction companies with operations in all 50 states. In 2007, it made $58.4 billion in revenues, up 39 percent from 2003, according to the National Auctioneers Association. If interested, registered bidders are required to submit a refundable cashier’s or certified check before the auction: $25,000 for Alm’s Buckhead condo and $50,000 for Perlmutter’s Alpharetta home. Former Coca-Cola Chief Executive Officer John Alm, who is also using Grand Estates to sell his penthouse condominium in Atlanta’s upscale Buckhead neighborhood Tuesday, agrees with Perlmutter. He said the company’s aggressive marketing campaign for the auction, which has included billboards, thousands of brochures and ads in major publications, has garnered nearly 150 phone calls from interested buyers. At an event this month, Grand Estates sold a seven-bedroom waterfront home on Georgia’s Lake Oconee for $1.83 million, the most successful sale for a multimillion-dollar home in the area since 2007, according to listing records. And the number of private sellers Grand Estates has represented has grown, too, from 15 in 2005 to 25 in 2009. But within the past year, Kirk’s client list has grown to include hedge fund companies and banks working with sellers in lieu of foreclosure, something she doesn’t expect to continue once the housing market recovers. Stacy Kirk founded Grand Estates in 1999 with her mother, who, at the time, was trying to sell her own luxury home on Lake Norman, about 20 miles north of Charlotte. Perlmutter, 50, and his wife are typical multiproperty-owning clients who are looking to make a lifestyle change upon becoming empty-nesters. The Charlotte, North Carolina-based company specializes in absolute auctions, which require no set starting bid and award multimillion-dollar homes to the highest bidder. Grand Estates Auction Co. has seen its business increase and evolve in the past two years as homeowners looking to sell are forced to adjust to the sluggish housing market. HUD bids include inspection and financing contingencies and smaller deposits. HUD gives home buyers priority over investors, will pay closing costs, and HUD homes are priced to sell quickly. Many are listed in the MLS with a zero price, increasing exposure to buyers in all price ranges. If the appraisal comes in low or any repairs are required or you fail to qualify, you may lose your larger than normal deposit without the protection of a financing contingency. The ideal situation for a buyer is to have no competing offers for maximum bargaining power. A small window to bid only for attendees can reduce your competition. A great bargain outweighs all other considerations and you can’t get one unless you are there, informed and prepared. Others have an undisclosed minimum, sometimes called a reserve- this means you could win the live auction, but not get the property because the winning bid is below the minimum. If you have questions, or would like us to schedule a consultation or auction, please give me a call. With our auction, the seller determines what the buyer will pay, and the terms and ads are written accordingly. In a traditional closing the buyer may ask for you to pay all their closing cost. There are no contracts that can block a higher amount offer. Interested parties are bidding against other prospective buyers. Selling at auction promotes competitive bidding, and there is no juggling back and forth with counter offers or contingencies. There have been several occasions where we have sold property in excess of the appraised value or asking price. The seller determines the minimum, and it is kept confidential. The seller must agree upfront how the property will be advertised. The seller knows exactly when their property is scheduled to be sold and they have complete control with the option to accept or reject any & all offers. This means there is no waiting for a potential buyer to make an offer. Also keep in mind that homes and offices are much more helpful to the economy when they are occupied rather than vacant. Truth: Many property owners specifically choose the auction method of sale for its accelerated marketing process and 30-45 day closing, seeing it as an advantageous way to quickly liquidate an unwanted property. For the few that don’t, owners can be rest assured that their property has been promoted to the fullest through a detailed accelerated marketing process, often bringing in offers even after the auction date. Truth: While auction companies and private auctioneers do receive payment to cover costs and possible property appraisals, the bulk of their fee goes toward the accelerated marketing process. The property will be sold to the highest bidder regardless of price! There are a variety of situations where an owner would choose to have their attorney arrange the sale of their property for them. An attorney is representing the owner of the property. Free and clear title is also guaranteed, but no ratification is required by the bankruptcy court. If a dispute arises between two or more bidders, the auctioneer shall decide in favor of one of the bidders, or immediately re-offer the property. Any bid that is merely a nominal or fractional advance may be rejected by the auctioneer if in his judgement it may affect the sale injuriously. Bidding increments are made in amounts acceptable to the auctioneer, who may set a minimum bidding increment as the sale progresses. Bids are generally made either orally or by raising a hand. At the conclusion of the announcement and question period, the auctioneer will solicit bids for the property. Before the bidding starts, the auctioneer will make important announcements regarding the property and your obligations as a purchaser. You will need to show the auctioneer that you have the required deposit which qualifies you as a bidder. See the Inspection section on this page for more details. If you do not obtain the financing within the specified time for settlement, you will be in default of your contract of sale. If the bank must take longer than the specified time to complete the loan, the sellers may extend settlement for a short period if you can provide proof of a loan commitment. If you plan to use a mortgage to purchase the property, we recommend that you apply for the loan immediately. It is the purchaser’s responsibility to obtain financing. See our Financing Page for a list of auction-oriented lenders. We will be happy to recommend sources of financing and often provide a link on the property web page. For specific rates, see the Maryland State Department of Assessments and Taxation web site for Property Tax information, and the appropriate Circuit Court Clerk’s office for the Recordation and Transfer Tax information. As the purchaser, you will pay all of the settlement expenses, including title fees and recording costs. We recommend that you obtain a fire and/or liability insurance binder on the property immediately as of the date of sale. The Terms Of Sale will outline your specific responsibility. You may be required to pay interest on the amount of the purchase price, less the amount of your deposit, from the date of the sale to the date you settle for the property. You may be responsible for the expenses of owning the property as of the date of sale or as of the date of settlement, including taxes, utility costs and insurance. Otherwise, you are free to take the check back since it is in your name. If you are the winning bidder, you will endorse the check to the auctioneers. As a bidder, your certified or cashier’s check should be made payable to yourself. Properties are often available to view by appointment with the auctioneer. You are welcome to bring someone with you to the auction, such as a contractor or home inspector. We will provide as much information as is possible in each situation. Failure to comply with any of the terms of sale may cause you to forfeit your deposit and be responsible for the expenses to resell the property, as well as any deficiency incurred. If you are having a bit of trouble understanding the auction chant, plan to listen for a few minutes and get a feel for it before you jump in and begin bidding. The auctioneer will determine the increments of bidding. Comments our editors find particularly useful or relevant are displayed in Top Comments, as are comments by users with these badges: Replies to those posts appear here, as well as posts by staff writers. In some cases, contributors are sources or experts quoted in a story. Post contributors aren’t staff, but may write articles or columns. SuperFan badge holders consistently post smart, timely comments about Washington area sports and teams. In an auction, your buyer’s premium will be the same whether you are represented by an agent realtor or not, so you might want to at least ask a broker to help you determine the home’s value. That buyer’s premium means that the buyer pays all of the broker and marketing fees. The buyers will forfeit their their deposit to the seller if they do not close. It doesn’t matter if the home inspector finds a major deficiency. It doesn’t matter if the buyer fails to get financing. And that deposit will be forfeited if the buyer fails to close for any reason. The buyer is required to put up a 10 percent deposit right away. After the gavel falls, all the leverage goes to the seller. I remember going to one auction where a property was bid up to $85,000 when an almost identical property right around the corner was listed on the MLS for $65,000. They’ve gone to the bank to get certified funds or large amounts of cash. Auctioneers’ job is to generate as much excitement about a property as possible. Even with the math that I did beforehand I still bid slightly higher than my max number and I still didn’t win. When the price starts escalating then they are forced to do quick calculations in their head while under pressure and in the middle of all the excitement. But I settled on what I figured the home would be worth after a good remodeling and from that I determined how much I could pay for the home. As usual, the comparable sales were spread out over a wide price range. We pulled the comparable sales and re-pulled the comparable sales. If you can, then you probably have an idea of where I’m going. For those of you who have sold or bought a home recently, could you imagine having 100 bidders competing for your home? But I was hoping the crowds would be smaller this time since it was so close to Christmas. Sign up to follow, and we’ll e-mail you free updates as they’re published. Be the first to know about new stories from PowerPost. In most cases, your closing will be scheduled within 30 days. Ultimately, there is no substitute for viewing the property. This packet contains many more helpful details, such as maps, demographics, zoning information, seller disclosure, inspection and floor plans. A property brochure is also available to view online or you may request one be mailed to your address. This can be found on the Auction property page with full details about the location, size, acreage and many other aspects of the property. We provide a staff of professional auctioneers and bid assistants to help you in any way throughout the bidding and buying process. So if you are the successful bidder, you will know that your price is fair market value. However, with an auction, the visible market value is established. If you are the successful bidder, you will be required to promptly meet with the auctioneer to sign the sales contract and finalize your deposit. Usually a small wave of your hand and eye contact will let the auctioneer know of your bid. Once the seller releases the property, it will then be sold to the highest bidder. In the bidding process to allow time for the seller to make the determination whether or not to release the property. If the bidding reaches or exceeds the reserve price, it is simply sold to the highest bidder. The auctioneer will clearly state when the property is sold that it is Subject to Confirmation”. If the high bid does not reach an undisclosed reserve price, the seller (usually a bank or financial institution) will have two weeks to confirm their acceptance of the sale. B. Subject To Confirmation” – If the property is advertised as being sold Subject to Confirmation” the property will be put up and sold without a recess to the high bidder. The bidding process starts at the published number and the property is sold to the highest bidder usually within ten minutes or less and without any recess in the bidding process. This number may not have much or any correlation to the market value which may be much higher. For example: This property selling to the highest bidder over $ (some number)” When the property is advertised this way the property will be sold to the highest bidder above the published number. A. Published Reserve” – If we advertise and promote the property with a published reserve – The property will be sold to the highest bidder over that number. You will need a personal check or cash to pay any additional deposit money over the published required deposit up to 10% of the final purchase price. A minimum10% of purchase price or the published amount (whichever is greater) total deposit is required for the successful buyer. Bring cash or a bank cashier’s check made payable to yourself in the required deposit amount. (Many properties are sold in 10-15 minutes from published time. This will get you a bidder packet of info on the property including the sales contract and other relevant data. We have experience with this system and are ready to use it to get the most out of your property. This method has proven results that the Multi-Par system will increase the final selling price of property. Also has Multi-Par capabilities, which can split large properties into smaller parcels. It is this kind of personal attention that makes us a great choice when selecting your auctioneer. We have the experience and expertise to turn homes, farms, commercial and retail properties into attractive marketable assets. Team will listen to your goals and expectations for selling your property, and develop an extensive marketing plan geared towards attracting interested buyers to the auction. We have the experience and expertise to turn homes, farms, commercial and retail properties into marketable assets. Has sold thousands of properties and assets for clients throughout New England and beyond. The results are impossible to predict; however, we can assure you of the best possible effort in achieving the highest return for the Seller. The Auction Method is an efficient and many times a required tool in recovering value for assets in the jurisdiction of bankruptcy and other courts. The owner agrees to sell above a pre-determined price, but that figure is confidential between the seller and the auctioneer. The minimum must be low enough to serve as an enticement, yet high enough to satisfy the seller in the event that little or no advancement is made. This approach offers protection to the seller, but in essence a minimum bid more or less expresses that the seller will be satisfied with the minimum bid. Property to be advertised and sold to the highest bidder above a pre-determined and advertised minimum bid. Property to be advertised and sold to the highest bidder regardless of price. PMI has developed a specialized mailing list targeting potential buyers and sellers. Licensed and bonded auctioneers in the states of New Hampshire, Maine, Massachusetts and Vermont, with affiliates in most other states. Market-based values are established, and few defaults are experienced in a properly structured auction. It allows Sellers to establish the time frame and set the conditions of sale. They ranged in price from $10,000 single lots to multi-million dollar properties. He will not have to worry about emergencies because purchasing and closing dates are known to him beforehand. Therefore it is sold with no emergency and the seller gains from it. Potential buyers receive enough time to make a decision on whether to make a bid or not after having a good look at the property to be auctioned. In contrast to conventional sales processes where it is mandatory for the property owner to make necessary improvements and renovations to get a fair price, these properties are auctioned on as-is-where-is basis. He is able to sell the property according to the terms and conditions set by him. Sellers are informed about the auction date before hand after the auctioneer is ensured that the sellers/bidders are able to meet the preset terms and conditions laid down by him. After the promotion or advertisement campaign is launched, the auction event takes place within a few weeks on completion of official formalities. If possible the consignment should be assigned to a reputed advertising agency to make the ad campaign more attractive. The auction event should be advertised in print and audio visual media to have a greater impact. It is to be ensured that a considerable sum is paid by the buyer as a down payment which is non refundable and both parties are willing to close the deal as soon as possible. The potential buyers of the property are then registered after it is ensured that they are financially qualified. Onus rests on the auctioneer to create demand or an urge to make a bid in the buyers/bidders mind and to attract the attention of the potential buyers/bidders. This transformation has occurred because the earlier believe that a seller will not take the risk of auctioning his property at a lesser price than its market value has changed. When a property is offered for auctioned, a sense of urgency arises to bring the interested parties together on a particular day and the sales process creates a sales price through competitive bidding among the participating parties. The auctioneer should also try to avoid bearing high carrying costs associated with the property. The time of auctioning should be perfect, when the market is soaring high. With a strong equity position in the property, he will save the cost of paying a sales commission. To get a fair price, his equity position in the auctioned property should be strong. It is important for a bidder to find out everything he can about a property before placing a bid. This may require a bid deposit or some other form of registration. However, an auction requires careful monitoring and it is important to stay involved and informed about all offers made on your property, just as if you were selling a property through another type of market. As a buyer, you can enter a market where you are likely to encounter many sellers who are ready and willing to commit to sell their property quickly and fairly. However, whether buying or selling in an auction, it is important to know the market so that the transaction is favorable to all parties involved. If you are an investor trying to sell your property quickly and do not necessarily care for what price it sells, auctioning it off may be the avenue you wish to take. In reality, this is often untrue – a legitimate auction is not arranged to swindle an informed buyer, and can be an excellent way to sell a property quickly and efficiently, regardless of the state of the property. There is a form to do so and it must be completed and sent to our office. Please note, you must register as a buyer’s broker at least 24 hours in advance. We pay brokers for referrals, if they are the listing agent, as well as brokers who represent a buyer at an auction. Develops your own market niche – able to offer new products and services other agents aren’t providing. To ascertain the amount and structure of any commissions to be offered, refer to the particular terms and conditions of the auction contract. If an agent brings a buyer to an auction, and that buyer purchases property, the agent can receive a commission. He is able to make market comparisons quickly and easily. The buyer sees many offerings in the same place at the same time. The buyer can withdraw from the bidding at any time until the gavel falls. The buyer feels comfortable with the purchase knowing that there is a contending bid just one increment under the purchase price. The buyer knows he is getting the property at a fair market price. The buyer knows the seller is fully committed to sell. This includes location, condition and surrounding properties. The amount of the fee depends on the size of the property and the size of the necessary advertising campaign. When a seller signs our service contract there is a pre-determined advertising fee. In the case that free and clear title cannot be delivered by the seller, the buyer will be refunded his/her deposit. Our service contract states that the seller must be able to deliver free and clear title to the property without any liens or judgments. If the rare failure to close occurs, the auction seller can turn to the next highest bidders, who demonstrated their willingness to pay nearly as much as the buyer who failed to close. Bank REO, you will typically receive the property with a clean title. Priority of liens is determined by the date of recording. If there are no bids higher than the opening bid, the property will be purchased by the attorney conducting the sale, for the lender. This opening bid is usually equal to the outstanding loan balance, interest accrued, and any additional fees and attorney fees associated with the Trustee Sale. At auction, an opening bid on the property is set by the foreclosing lender. At the Trustee Sale, the property is auctioned in public to the highest bidder, who must pay the high bid price in cash, typically with a deposit up front and the remainder within 24 hours. The time and location of this sale are designated in the Notice of Sale. Finally, this Notice of Sale is also published in newspapers local to the county in question over a three-week period. In addition, the Notice of Sale is recorded at the County Recorder’s Office in the county where the property is located. The homeowner will receive a Notice of Sale, and this notice will also be posted on the property. After about three to six months of missed payments, the lender orders a trustee to record a Notice of Default (NOD). If you are interested in the available properties for auction, explore our Properties for Sale page. If you are interested in selling your property with an auction, contact us today to learn how we can help you! We set the highest standards for honesty, integrity, and professionalism for buyers and sellers alike. The marketable value of the property is determined by a competition between bidders to establish the final price of the property. The property will be shown two weeks prior to the sale, one week prior to the sale and the day of the sale in most cases. All potential bidders are required to be preapproved so a timely closing may occur. A buyer’s premium is used to offset the expenses incurred in the process of having the sale. For all auctions, a buyer’s premium is added to the final sale price which is usually a percentage of approximately 3 to 10 percent of the sale price. The seller has the ability to accept or decline any or all bids or to withdraw the property before the completion of the sale by the auctioneer. This gives the seller a guarantee of the minimum he or she will be able to make off the property sale. Let’s say a seller doesn’t want his or her home to sell for less than $200,000. A reserved auction benefits the seller by allowing them choose the bottom dollar they want their property to sell for as a reserve. After The Auctioneer And Bid Assistants Are Positive That The Highest Possible Price Has Been Reached, The Auctioneer Closes The Bidding And The Property Is Sold. Nothing Can Better Reinforce The Value Of Your Property In A Bidder’s Mind Than To See Someone Else Increasing The Bid. Bidders Are Placed In A Comfortable, Yet Competitive Environment Where They Must Compete Against One Another, The Psychological Effect Of This Can Not Be Found In Any Other Sales Method. At Powell Auction, Our Marketing Department Will Provide All The Necessary Research And Materials So That Bidders Will Have Access To Any Information They Need To Bid With Confidence. The Electricity In The Atmosphere Breeds That Excitement And Increase The Competitive Nature Of The Bidder. Because Of These Results Our Clients Return Time After Time. It’s The Only Method Of Selling Where The Price Is Always Negotiated Upward Instead Of Downward. Along With Providing Maximum Exposure For Your Property & Makes The Sell Of Your Property Quickly. The Auction Method, Once Viewed As A Last Resort To Sell Distressed Property Is Now A Cutting Edge Marketing Method Which Offers Many Advantages To The Seller. Our Time Tested Methods Have Proven To Be Consistently Successful. A Plan Of Action Is Tailored To Meet The Specific Needs Of Each Individual Client. Powell Auction Wants To Earn Your Trust, Your Respect, Your Friendship, And Your Business. And the Buyer loses his down payment if unable to complete the contract terms. It will cost you time and money to move-in or rent out. Call me at (480) 650-0075 and I will walk you through the process. It can be held at the trustee office or at the courthouse in Jefferson for Maricopa county properties. Cashier’s Check is good made out to yourself or as instructed by auctioneer. Feel free to let me know if there is any topic you would like me to discuss. Thank you Winona for reading my blog and for your encouraging comments. It takes time and extensive research to compile a full list on your own. There is a partial list available to the public from the county. I’ll make sure to bookmark it and return to read more of your useful information. I’m glad that you find my blog valuable and informative. Thank you for the nice words and for sharing my website with others. I’ll definitely digg it and for my part recommend to my friends. If you decide to stay, he/she could begin an eviction process against you. He/she has the right to give you notice to vacate the premises. Unfortunately, this is not the first time I heard of such an event. You may email me directly at MariaHassRealEstate@ if you need more assistance. If you need a hard money lender contact Les Gin at 602.882.8849. You may contact Jameson Van Ness of at 480.560.5757 and ask about their service. Very good information, do you know of a bidding service that will send bid lists out day before auctions, would sign contract with bidding service. It will take a lot of time, patience and commitment to get it done. If you would like to do it on your own, you could go to the county to ask for a partial list and call the different trustee offices to get their partial list. You will have to contact any of the bidding companies. Once you are a successful bidder on a property, the bidding company will release the check and remaining balance to follow to the Maricopa county. The bidding company will deposit your check in their trust account. If you are hiring a bidding service to bid for you, make the check out to the bidding service. If you are bidding for yourself, make the check out to your name. This is what I do with my short sales if I’m getting no where and it has given me results. Contact a supervisor or the CEO of the bank if you really want to stay in your home ASAP. I am not certain if you are referring to a loan modification as the restructuring plan. What if the bank clamed to be sending a restrucuring plan to stop a forclosere, but never fallowed throw. I have done everything and called every number I could to try and stop this… No luck! We have done nothing but call both and gotten the run around. Trustee do you mean Bank of America they are my mortgage company and the lawyers that are auction saling the home is recontrust. Postponements can be done just minutes before the sale. Your Realtor should be able to access this information. What if I am a property owner of one of these auction sales that is schedule for today at noon and I have a short sale offer that was waiting for approval yet did not get it in time from the nogotionator so that this could be postponed. Bidding at the courthouse is more complicated than it looks. They will simplify things for you and manage your expectations. If you have a lot of time in your hands to do a thorough research on the property and don’t mind the frustration of being overbid by others, then you may venture into it. Otherwise, leave it to the pros. My husband and I have been considering purchasing our vacation home through trustee auction and have been reviewing the list of foreclosed homes over the last month. I got a home trustte sale awesome deal had 10.000 cashier check but i also got pre qualified for loan. Bank owned homes is certainly a safer alternative and you do have time to have a title insurance policy in place and professional inspections done prior to actually having to put cash on the line. Is is strongly advised to have professional representation to minimize any risks that is associated with a trustee auction. If the seller was in 2nd position, you could end up the owner of a home that still has a large mortgage lien! As far as I know, FHA loan will not approve of this kind of a deal. Hi Maria: I was reading the information on bank-owned properties, short sales. If you would like to look at bank-owned properties, short-sales or regular sales, I will be more than happy to assist you. You may begin by checking out or by phone at 480.560.5757 or email azforeclosurelist@ Ask for Jameson and be sure to pass on my name – Maria Hass. A buyer can purchase a home quickly (within 48 hours) at a trustee sale. There is a bigger risk involved in purchasing homes at the trustee sale that may cost you sleepless nights. As a buyer, you are able to see the condition of the home and also inspect the home prior to closing a deal. Once a home is bank-owned, banks are more desperate to get rid of the home because they have held the property for so long (at least nine months without seeing a penny). In my opinion, buying an Bank-owned property is a better way to go. It is less complicated, easier and can offer you bigger savings. If you are not able to pay in full within the timeframe given, you will lose your $10,000 cashiers check and may be barred from future participation in the public auction. The remaining balance is due no later than 5 p.m. the next business day. There is an average of 400 homes listed for auction everyday and about 96% of them end up as REOs/bank-owned. The reason for the few sales is the high starting bids. That would mean that 96% of the homes went back to the bank. Out of 200 homes auctioned at the 10 a.m. and 12 noon sessions, eight of them actually sold. A majority of the bidders are wholesale investors bidding for their company or bidding for a client. You may also not have the opportunity to inspect the property and instead have to rely on photos and printed descriptions. Simple online searches for REO properties” or foreclosures” will result in a variety of online property resources and listings. Many foreclosed homes are listed for sale the same way as traditional homes. Foreclosed homes can vary from a regular home purchase, and you will want to research all loan products available for this type of transaction, including traditional loan products or an FHA 203(k) Renovation Loan (a mortgage that provides the purchase price plus funds for renovation by financing the as improved” value of the home). The REO market offers buyers a unique opportunity to invest in a variety of properties in a diverse range of conditions and price ranges. In addition, a prequalified status shows you are not just browsing, which in turn makes you more attractive to a seller. If you decide to move forward with a purchase 1 , getting prequalified gives you the advantage of being better prepared to make an offer. You will want to make sure the costs for your mortgage, property taxes and insurance are typically no more than 36% of your income before taxes and other deductions. Before you start looking at foreclosed homes, you will need to determine how much home you can comfortably afford. Earnest money is a good faith” deposit demonstrating the buyer’s interest in the property and may be an indicator of how much money will be deposited as a down payment. These out-of-pocket expenses may include lender required documentation such as an appraisal or home inspection and bank-required minimum earnest money. As a result, the bank is often unable to verify the condition of the property or complete a Seller’s Disclosure. Given that the bank has not maintained or had first-hand knowledge of the foreclosed home prior to acquisition, there may be no record of property repairs or maintenance that would assess the true property condition. You will want to submit a fair and reasonable offer, as most banks will list properties at a fair price. Pricing for a foreclosed home is typically set at market value in an effort to move the property quickly. In some cases, an investor may own the property and will have to provide approval as well. An REO property is owned by the lender as a result of the previous owner defaulting on the loan. We stay fully involved as a liaison between bidder and seller, and assist with any details that guide the sale to a smooth closing. A Father Time® auction is a thoroughly professional and unique business event, where no detail is left to chance. Today’s buyers are just getting up the nerve to throw their hat into a market that has been unprecedented in volatility. Some will go out of their way to damage the property before leaving it. That’s just the reality of buying distressed property. This means there are no warranties or guarantees, nor will you be able to make any repair requests. In closing, I’d like to reiterate a point we discussed earlier. Most bidding wars are based on a combination of inexperience and ego among the bidders. But the starting price will probably still be below the full market value of the home. If the home does not have a recent appraisal, the starting price is normally based on the amount owed to the lender. If the home has been appraised recently, the starting price will probably be a certain percentage of the appraised value (two-thirds, 75 percent, etc.). This will vary from one company to the next, so find out the rules and payment terms in advance. You must register as a bidder so you can receive a bidder number. By this time, you should already know how much you’re willing to pay for a certain property. The property will likely be sold as-is, with no warrantees of any kind. In most cases, the bidding will start at a certain percentage of the appraised value (such as two-thirds of the appraisal amount). These companies usually have photos and additional details on their websites, and they generally encourage walk-through inspections prior to attending the auction. Though you might get more information about the properties for sale when using one of the private companies. Afterward, a deed will be given to the successful bidder, who now becomes the homeowner. But they’re not always conducted by government officials. Their number-one objective is to sell the home as fast as possible. If they happen to make a profit through the auction, they’d certainly be happy about it. But it’s not their primary goal. With no contingencies and a sizable non-refundable deposit on the line, auction buyers are qualified and highly incentivized to complete the transaction. The Broker-Auctioneer will offer full disclosure to all interested parties in accordance with the law. A: Though we are selling as is,” we must abide by applicable state and federal laws. We will recommend the strategy we believe will be most beneficial for you. This way you can be sure you receive the maximum advertising exposure possible for your property at the lowest possible cost. A: The Auctioneer is paid via the buyer’s premium, which is added to the buyer’s final bid. Said simply, it is only worth what the person who wants it the most is willing to pay. The broad exposure of an auction, coupled with the competitive bidding requirement, generates the most accurate valuation of the property. A: We understand your concerns and many of our sellers need to cover an existing mortgage or lien on their properties. There are great differences in the marketing and the public image of a voluntary, ‘by choice’ auction, such as ours, versus a distress auction. When multiple properties have for sale signs posted, the property with the CATES AUCTION sign will always garner most of the attention. This means that your property is exposed to the widest possible buyer audience, thereby increasing your possibilities of a successful sale at the highest possible price. We have marketing professionals producing all advertisements and marketing material, with an eye toward highlighting your property’s strongest features. Of course your property will also be featured on Multiple Listing Service (MLS), , and a variety of specially chosen listing sites. While every campaign is unique to the property, auction marketing typically consists of professional brochures, online advertising, print ads in key publications, targeted direct mail, e-mail marketing, realtor promotions, preview events, property signs, telemarketing, and a full-featured webpage with photo galleries and downloadable documents. From investment properties to luxury estates, from $50,000 to multiple millions, from fixer uppers to new construction, from a single acre to thousands of acres, we have successfully sold it all at auction. This means a quick and easy transaction for you without the hassle of negotiations, and the uncertainty of of an unknown sale date. Your property is sold in as is” condition, with a non-contingent contract, non-refundable deposit and 30-day settlement is required of the buyer. An auction provides multiple bidders competing to buy, generally bringing a higher price than negotiating with a single buyer. Advertising a property for auction creates a sense of urgency, bringing all interested parties together in a specified timeframe. A: To accelerate the sale of your property by generating additional consumer interest and activity. Seller risks overpricing and thus, property sitting on the market; or under pricing and selling too cheap. Aggressive Targeted Marketing utilizing Signs, Brochures, Newspapers, Email, Internet, Direct mail, Telephone, MLS & more. Special Message for Realtors: If you are a realtor assisting a current or prospective seller, we have several partnership programs available to allow you to offer a professional Cates auction to your clients. This website has a number of resources to assist you in this process. Whether you are just beginning to consider selling or you’ve already tried multiple methods, you are wise to explore the auction option. (See our Email Privacy Policy for details.) Emails are serviced by Constant Contact. You may unsubscribe via the link found at the bottom of every email. By submitting this form, you are granting: Tom Hall Auctions, 4644 Main St, Schnecksville, Pennsylvania, 18078, United States, permission to email you. Please complete the information below and click Sign Up. The seller sells their property quickly at a fair price and the buyer purchases the property for only one bid more than the next willing buyer. Call us today for a free no obligation, confidential consultation and proposal. Buyers immediately can decide if the property represents a fair value to them. The auctioneer will accept bids at or above the stated minimum opening bid. Since the sale is guaranteed, buyer participation and excitement are maximized. This deposit eliminates most buyers who are not sincere about buying from even bidding on your property. You can cash out normally in 60 to 75 days from time you sign a contract. However, if you need to cash out and can afford to give up 10 -20% of your value, it is a great tool and can be very successful if you select the right auction company. They can help you market the home which will result in more money. If you have a realtor who knows about auctions, yes, definitely. You can reasonably expect to get 60-80% of what it would sell for on the open market. The auction purpose is to sell your home fast and let you cash out now, not 6 -12 months from now. There is nothing worse than spending $3,000 to $6,000 on poor or inadequate advertising and not have anyone show up. I have seen advertising and not have anyone show up. I have seen that happen only with inexperienced auction companies. Larger homes or unique properties will cost more but if you do not advertise you will not succeed. Advertising: This is the seller’s only out of pocket expense. The buyer pays the commission which is 5 to 10% additional to the purchase price. Again, an experienced auctioneer knows how to get the most money out of the final 2 or 3 bidders. Once the buyers start bidding, it is only a few minutes until it is narrowed down to the top 2 or 3 bidders. It only takes two buyers to succeed, however, if they don’t sense the auction fever, a term that is hard to explain unless you have been to an auction, they won’t bid at all. Buyers love an absolute because they know if they are the high bidder they will get the property. This scares sellers because they are afraid they will lose more than they want to lose on the property. Absolute: The property will sell regardless of price offered. I. Advantages: Sellers love this because their comfort level allows them to sell and not lose any money beyond the price they will accept. Ii. Disadvantage: A lot of buyers will not attend unless the minimum bid is low enough to attract the investor type of auctionees. The best book I read was Church’s, Jails & Goldmines” by Steven Good, a professional worldwide auctioneer. Keep track of your favorite properties and get instant notifications if the price or status changes. Find Properties that match your search criteria and receive notifications when new homes hit the market. If the trustee does not evict the current owners, you may be responsible to do this. You should avoid spending money on repairs or improvements during the redemption period. In other states, you may need to wait a month or more for the sale to be confirmed by a court. In some states, ownership can be transferred immediately or within a few days. If you are the winning bidder, make sure you get the necessary documents from the auctioneer to verify that you are the winning bidder. Take as many cues from the other participants as you can, but don’t let them dictate how much you bid. Also, if you’re not able to pay the remainder of the bid within the time frame stipulated by state law, the deposit you paid at the auction is often nonrefundable. By setting a firm ceiling for your bid, you’ll avoid getting caught up in the heady auction atmosphere and overbidding, which can result in little or no bargain for you. If you own a home, you might be able to take out a home equity line of credit, which is a cash loan. If you don’t have that type of cash lying around, you have a couple options. You won’t even be qualified to bid if you don’t meet that requirement. Determining your bid amount is more obviously important in states where bidders are required to bring the full amount in cash or cashier’s check to the auction. Based on all the factors used to determine the potential bargain – and your financial capability – you’ll need to determine how much you can and should bid at the auction. So a first mortgage will usually have the first priority, and all other liens will be considered junior liens. The priority of a lien is usually determined by the date it was placed on the property. If no one bids above that amount, the foreclosing lender will take possession of the property. This is all public information and you can research on your own with the county recorder or you can use RealtyTrac’s property reports and tools to help. You need to find out as much as you can about the estimated market value of the property, how much is owed on the property and if the owner has any other liens against the property. If you get a friendly representative when you call the trustee, you might be able to get information about how the bidding works in your area, but in most cases you’ll need to educate yourself. In other states, bidders are required to bring a certain percentage (10 percent is common) of the bid amount to the auction and pay the remainder of the amount within a certain timeframe if they are the highest bidder. The bidding procedure varies from state to state, so you should become familiar with the procedure in your area before bidding at an auction. Although cancellations and postponements are announced at the time and location of the originally scheduled auction, you can call the trustee to find out beforehand. After you find a property online, it’s a good idea to drive by the property to get a better idea of the property’s condition and the type of neighborhood. It’s important to get up-to-date auction information and act on it as quickly and on a regular basis Develop a system to keep track of properties that interest you. Our commission splits are based on the bid price not the contract price. We intend to be in business, in Minnesota, for years to come. Or Minimum opening bid $10,000” when we know the seller won’t sell for that amount. Once the bidding starts at that price, the property sells to the highest bidder above that amount. There is always the fear that no one will show up and they will have to sell for pennies on the dollar. Please fill in the following information so we can alert the Home Guides editorial team about a factual or typographical error in this story. Thank you for providing feedback to our Editorial staff on this article. If the home sells for the full amount of the loan, the right of redemption period lasts only 90 days. To do this, the seller must cure the default on the loan, plus pay any associated fees. But generally once the bidding begins, anyone approved by the trustee can bid on the property until only one bidder is left standing. The proof of funds can include a deposit that is refundable if you do not win the property or cannot complete financing for the purchase within 30 days. In the minimum bid format, the seller sets the minimum bid, and public bids are taken from there until the highest bidder wins. Depending upon the type of property, location, value, and the size of the market area, the advertising budget can run from 1/2 percent to 5 percent of the estimated value. If you’re interested in trying to pick up a bargain property at auction, there’s a lot to learn. Without this information, it can be hard to know what you’re getting into, what a property’s repair costs will be, or the true value of property until you’ve become the new owner. Even if you win the auction, in some cases, you will not be allowed to purchase the property. For example, you may need a cashier’s check for the minimum bid amount of the property in which you are interested. You will need some amount of cash no matter what just to secure your bid. Also, because of the financial situation the previous owner was in, there may be other liens against the home, like tax liens, contractor liens, or a second mortgage. Properties being auctioned off aren’t necessarily hidden gems. Also, because of the extra risk involved and because fewer people may be interested in the property than if it were available through traditional channels, prices can be lower. Other times it is only possible to drive by and see the outside. These allow people to determine in advance which properties they wish to bid on and the maximum price they are willing to pay. Listings describing the properties to be auctioned are also available. Often, these properties are sold at a loss, but if there is a profit, it is supposed to go the homeowner after the mortgage and any other liens are paid. In an absolute auction, the winning bid gets the property. In a subject to lender confirmation auction, the lender doesn’t have to accept your offer even if you are the highest bidder. In these cases, it is the unpaid tax authority (not the bank) that seizes the property. The other main way a home ends up at auction is when the owner doesn’t pay property taxes or becomes severely delinquent on state or local income taxes. The amount of time it takes from when the homeowner stops paying the mortgage to when the home actually ends up at auction varies, but can be anywhere from a few months to a year or more. Then, the bank files a notice of default with the county recorder. First, the homeowner doesn’t pay his mortgage for several months. Before a property reaches auction, several things have to happen. Title can also be conveyed with a Special Warranty Deed The Terms of Sale will state the type of deed. A: A clear title, unless stated otherwise, will be conveyed via a Government Deed Back taxes, liens and/or other encumbrances will be paid by the Government. If you are unable to close, you will forfeit any deposits you made. A: Failure to obtain financing does not relieve you of your obligation to close on the property. These costs will be paid by the Buyer and Seller in accordance with the customs of the county in which the property is located unless stated otherwise in the Terms of Sale. Closing costs include transfer taxes, documentary stamps, recording fees and escrow fees. Only the seller may exceed closing beyond 30 calendar days. A: Closing occurs within 30 calendar days of the sale or sooner. A: Within three business days, the high bidder will deliver ten percent (10%) of the purchase price less the initial money deposit by either cashier’s check or bank wire. A: After the auction the high bidder and second high bidder (back-up bidder) will be required to make an earnest money deposit in the form of a cashier’s check made payable to CWS Marketing Group. Bid deposits must be received by 5pm one day prior to sale. Personal or business checks, bank letters, money orders or letters of credit will not be accepted. Once we receive your bid deposit you will receive an approval email. Note: A refundable bid deposit is required for approval to bid online. A: Cashier’s or certified checks made payable to CWS Marketing Group are the only form of payment accepted. These funds are not collected unless you are the successful bidder for a property. A: If you plan to bid at the auction, you will need to show a cashier’s check (made payable to CWS Marketing Group) in the amount of deposit stated in the terms of sale. The deposit must be in the form of a cashier’s check made payable to CWS Marketing Group. A: You are required to put an earnest money deposit down on each property that you purchase on sale day. A: CWSAMS is the prime contractor for the U.S. Department of the Treasury’s nationwide Seizure and Forfeiture of Real Property Contract. Good buys are possible, just be sure to do your own research and inspect the property. A: Public interest and the market drive the final price of auctioned properties. A: Seizures are due to smuggling, drug trafficking, money laundering, credit card fraud, food stamp fraud, mail fraud or other illegal activity. A: It is random in which state properties become available because these are criminal seizures occuring anywhere in the U.S. You may sign-up for free email notices that will alert you if a property becomes available in your area. Online Auction Deposit Form If you would like to place a bid for an online auction, please mail the Bid Deposit Form with your deposit to address on the form. Please mail the Written Bid Form with your bid amount and deposit to address on the form. Written Bid Form If unable to attend the live auction, you may submit a written bid. Bidder Registration Form You may print the Bidder Registration Form prior to the auction and bring to the sale. The bid is sometimes a dummy bid (see definition) but not always. Sniping – the act of placing a bid just before the end of a timed auction, thus giving other bidders no time to enter new bids. The reserve price differs from a minimum bid (see definition), in that the seller sets the reserve price (if desired), while the auctioneer sets the minimum bid. If the winning bid is below the reserve price, the seller has the right to reject the bid and withdraw the item(s) being auctioned. Reserve price – A minimum acceptable price established by the seller prior to the auction, which may or may not be disclosed to the bidders. If the proxy is outbid on an item during the auction, the proxy (depending on the instructions of the bidder) may either increase the bid (up to a set amount established by the bidder) or be required to drop out of the bidding for that item. The minimum bid differs from a reserve price (see definition), in that the auctioneer sets the minimum bid, while the seller sets the reserve price (if desired). If no one bids at the initial minimum bid, the auctioneer may lower the minimum bid so as to create interest in the item. If the lot is for a group of items, the price paid is for the entire lot and the winning bidder must take all the items sold. Alternatively, a participant may offer a bid at a smaller increment, which the auctioneer has the discretion to accept or reject. An auctioneer may decrease the increment when it appears that bidding on an item may stop, so as to get a higher hammer price. Increment – a minimum amount by which a new bid must exceed the previous bid. Escrow – an arrangement in which the winning bidder pays the amount of his/her bid to a third party, who in turn releases the funds to the seller under agreed-upon terms. The winning bidder has his/her earnest money applied toward the final selling price; the non-winners have theirs refunded to them. The purpose of this deposit is to deter non-serious bidders from attending the auction; by requiring the deposit, only bidders with a genuine interest in the item(s) being sold will participate. Dynamic closing – a mechanism used to prevent auction sniping , by which the closing time is extended for a small period to allow other bidders to increase their bids. Buyout price – A price that, if accepted by a bidder, immediately ends the auction and awards the item to him/her (an example is eBay ‘s BuyItNow feature). They announce the rules of the auction and the item(s) being auctioned, call and acknowledging bids made, and announce the winner. Instead of asking $100, hoping to entice wide interest (for who wouldn’t want a $1,000 car for $100?), the auctioneer may suggest an opening bid of $1,000; although the first bidder may begin bidding at a mere $100, the final bid may more likely approach $1,000. For instance, say an auctioneer is about to sell a $1,000 car at a sale. Another approach to choosing an SOB: The auctioneer may achieve good success by asking the expected final sales price for the item, as this method suggests to the potential buyers the item’s particular value. This is due to the increase in the number of bidders attracted by the low SOB. Several observations indicate that the lower the SOB, the higher the final winning bid. Thus there is a certain margin of safety to ensure that there will indeed be a lively auction with many bids submitted. Experienced auctioneers will often select an SOB that is about 45 percent of the (lowest) estimate. Once there is an opening bid, there will quickly be several other, higher bids submitted. To accomplish this, the auctioneer must start the auction by announcing a suggested opening bid (SOB) that is low enough to be immediately accepted by one of the bidders. There will usually be an estimate of what price the lot will fetch. The Auction Alliance 59 controversy focused on vendor bidding and it was proven to be legal and acceptable in terms of the South African consumer laws. If the reserve is not reached this should be clearly declared. A co-owner is one of two or several owners (who disagree among themselves). These are all official legal terms in Australia, but may have other meanings elsewhere. In Australia, a dummy bid ( shill , schill) is a criminal offence, but a vendor bid or a co-owner bid below the reserve price is permitted, if clearly declared as such by the auctioneer. In a first-price auction, a dummy bid is an unfavourable bid designed so as not to become the winning bid. In an English auction, a dummy bid is a bid made by a dummy bidder acting in collusion with the auctioneer or vendor, designed to deceive genuine bidders into paying more. This form of a ring was used as a central plot device in an episode of the British television series Lovejoy (series 4, episode 3), in which the price of a watercolour by the (fictional) Jessie Webb is inflated so that others by the same artist could be sold for more than their purchase price. In Britain and many other countries, rings and other forms of bidding on one’s own object are illegal. A ring can also be used to increase the price of an auction lot, in which the owner of the object being auctioned may increase competition by taking part in the bidding him or herself, but drop out of the bidding just before the final bid. To call out these nonexistent bids auctioneers might fix their gaze at a point in the auction room that is difficult for the audience to pin down. The objective of the buyer is to minimize his expected total cost for acquiring the fixed number of items. They established monotonicity properties for the value function and the optimal dynamic bid policy. In this model an item valuation derives from the sale of the acquired items via their demand distribution, sale price, acquisition cost, salvage value and lost sales. Environmental auctions, in which companies bid for licenses to avoid being required to decrease their environmental impact. Without modification, auction generally refers to an open, demand auction, with or without a reservation price (or reserve), with the item sold to the highest bidder. Of special interest and importance during the actual auction is the time elapsed from the moment that the first bid is revealed to the moment that the final (winning) bid has become a binding agreement. Where there are few bidders and each bidder is allowed only one bid, time is saved, but the winning bid may not reflect the true market value with any degree of accuracy. Open bidding during an extended period of time with many bidders will result in a final bid that is very close to the true market value. The number of simultaneous bidders is of critical importance. These goods are rarely in single lots – photocopiers or fax machines would generally be sold in bulk lots. This means that the goods have already been sold off, usually to a trader or dealer on a private, behind-the-scenes basis before they have had a chance to be offered at the auction sale. Usually these goods have been sold by ‘private treaty’. Private Treaty Sales Occasionally, when looking at an auction catalogue some of the items have been withdrawn. Bidders can also avoid the possibility of goods being damaged whilst they are being removed as they can do it or at least supervise the activity. The attraction is that someone else has already paid substantially to set up the policy in the first place, and you will be able (with the help of your trusty financial calculator) to calculate its real worth and decide whether it’s worth taking on. Here you find a vast range of materials that have to be sold by various government bodies, for example: HM Customs & Excise, the Official Receiver, the Ministry of Defence, local councils and authorities, liquidators, as well as material put up for auction by companies and members of the public. The winning bidder pays the amount bid for the item, without top-up. Losing bidders must pay the difference between their bid and the next lowest bid. Top-up auction is a variation on the all-pay auction, primarily used for charity events. Auction by the candle A type of auction, used in England for selling ships, in which the highest bid laid on the table by the time a burning candle goes out wins. You are consenting to receive this offer plus additional coupons, offers, updates, up to 4/mo, standard text message and data rates may apply. Since the seller typically pays for title insurance, a company has been selected and will be provided to you in the contract room. A: No. If a buyer does not close for any reason on or before the closing date, the initial deposit is automatically forfeited. A: A buyer’s premium is a percentage paid by the buyer and added to the highest successful bid to determine the final contract price. A: You will move to the contract table where you will present your check for the bid deposit and complete the sales agreement. The bid deposit is held in escrow and is deducted from the total purchase price, equal to the bid amount plus the buyer’s premium. A: No. The bid deposit is a non-refundable deposit, and it is usually an amount that we feel comfortable will assure the buyer will close. When a property is being sold absolute, it will be sold to the highest bidder regardless of the price. We try to make sure that the reserve is reasonable and that the seller is very motivated to sell at the high bid achieved, regardless of the reserve amount. You just need to bring and present a separate check for each property you intend to purchase. This amount is posted on the property page of the web site and in the brochure. If you fail to pay the balance due by the closing date, you forfeit your bid deposit. As a bidder, all you need to do is hold up your bidder card and call out your bid, or tell one of the bid assistants what amount you want to bid. Sellers are motivated to sell, and they offer buyers an opportunity to purchase desirable property at a substantial discount. Owners make a wise business decision to sell property in a one-day sale rather than continuing to carry costs associated with conventional marketing. You are only competing against the other market bidders, and you will not overpay. Since this is open for everyone to see, there is an inherent honesty to the process. You should inspect the property during one of the scheduled preview dates. We understand your concerns and your need to cover an existing mortgage on your property. Please keep in mind that we will be your agents and will have a fiduciary responsibility to represent your best interest. A. This is part of the interview process during our first meeting. The auction process is the best way to revive interest and create urgency in the marketplace to obtain offers at current market value. It usually has not been marketed effectively, and therefore, the property has experienced insufficient exposure. A. Often, we find that the price is not the reason why a property isn’t selling. This does not include normal wear and tear items or any problems that occur after the closing. A. There is no seller’s disclosure form for you to fill out: however, if there are any blatant defects, ethically we must disclose these to potential buyers. Generally, the marketing plan includes direct mail, local, regional and targeted print advertisements, our web site and other marketing avenues that may include radio and/or television. A. A detailed marketing plan is developed by the auctioneer and is presented to the seller for approval. The decision to sell absolute or reserve should be discussed in detail with your sales associate or auctioneer. You may also choose the reserve method, a set secretive price, which the seller will not sell below. It attracts purchasers from the broadest geographic region because buyers can justify their time and efforts to inspect, bid and buy, knowing there is no question that the property will be sold. This guarantees you are going to sell, and this creates a much greater interest with potential buyers. You are able to sell your property quickly, receive a fair market, no-contingency contract and usually close in 30 days. This is a legal term meaning that once the bidding is declared open the property will sell to the high bidder regardless of price. Buyers get maximum flexibility, Sellers get maximum value. The use of patented ‘MultiPar Software’ makes the whole bidding process easy to understand, and it’s FUN. Bill Fair and Company uses this multi-parcel method to generate the most successful auction possible! We accomplish this in an unrestricted open market forum with continual computerization of bidding results. Sometimes we offer a large piece of property which can be divided into one or more tracts. The high bidder will execute the contract and make the earnest deposit. When the auctioneer determines that there is no further increase offered he will declare the high bidder. From the first bid, things move quickly with bidders bidding up to the price they are willing to pay for the property. Any tie bids or other issues regarding who has the high bid are always resolved by the auctioneer, who has complete and final authority. If you did not intend to bid, simply inform one of the bid assistants or the auctioneer and the mistake will be corrected. It is a myth that bids can be made accidentally by scratching one’s nose or waving to a friend. Bid Assistants make sure anyone trying to bid is recognized. Bid Assistants will be introduced at the opening remarks. The Auctioneer is the person making the opening remarks and calling the bids. These comments usually take only a few minutes and the bidding is ready to begin! Remember that REO’s sell at pretty close to full market value and are not the deals presented on late night television. Since there is no face-to-face presentation to the bank, provide the listing agent with a pre-qualification or better yet, a pre-approval letter and buyer biography. Banks do not want to see a lot of proprietary disclosures; they are exempt from the California Seller’s Transfer Disclosure Statement (TDS-14). Your offer should include an inspection contingency period that allows you to terminate the sale if the inspections reveal unanticipated damages that the bank will not correct. There are no costs to participate in our partnership program and in most cases you will earn the same fees as you do representing a client in a traditional sale, but in an accelerated timeframe! Thanks again for letting us have such a delightful time at your auction! We live in California full time but own a home in Southwest Missouri and are therefore in the area several times a year. Just a quick note to thank you for the sale and for the box of personal items you sent back to us. We are so very happy and pleased with the results and all you did to make it possible. We had an excellent turn out, a great sale and excellent follow-up. Cody for his help during setup and Tyler for the great job he did with the advertising and other staff that are behind the scenes. None of them offered the level of advertising or the commission rate that you did, even at double and triple the price. We had several people come and look at the property and they were all qualified buyers. The advertising fee was very reasonable, in fact, I could not have gotten any where close to that level of exposure on my own. I just wanted to drop you a line to tell you and the other folks at Diamond S Auction how pleased I was with the service you provided. I have personally recommend Diamond S to many different types of sellers and intend to continue doing so. It is my opinion that the ability to consistently advertise and market effectively for good attendance by interested bidders at different types of sales has been a big part of why customers are satisfied with the auction process. The customer can take a hands-off approach with virtually all of the preparation process being performed by Diamond S. This is exactly the kind of service that is perfect for heirs, many of whom are out of state, with little ability to manage the auction preparation process. I have dealt with Diamond S Auction for many years and have seen first hand the customer oriented approach that has proven to make the company so successful. We were also very pleased with the way they worked with the bidders to obtain the highest selling price for our properties. We were very impressed by their professionalism and attention to detail with the set-up, as well as, the computer presentation they used during the auction. If you are the winning bidder your deposit will be credited towards the purchase price of the property. All bidders are required to register to bid by: Providing government issued identification, completing a registration form, presenting a cashiers or bank guaranteed check to the auction registration clerk prior to being issued a bidders number. People who are seriously considering bidding on a property have commented time and time again how much they appreciate the updated information. Information is added to the DIGIBIP as it is produced like appraisals, disclosures, surveys, inspections or material facts about a property which may be discovered after the original digibip was made available for download. We ask that anyone who downloads the free digital bidder information package to provide contact information. No person who has not properly identified themselves will be allowed on the property. Registration is free and does not commit you to anything and simply provides the auctioneer a record of who has inspected the property. All persons & prospective bidders are required to register to preview or inspect the property. We do not count internet bids against live bidders who have not properly registered or paid the bid deposit. A. Internet bidding is available for qualified bidders. When you register to bid we require bidders to hand over the deposit check and/or bank letter of check guarantee. There are no private showings and we schedule for weekend and after normal working hours on a weekday. Second after looking over the information plan to inspect the property at one of the scheduled preview dates. The BIP contains copies of every document, pictures, seller disclosure, survey, deed, restrictions & covenants, appraisals and community information. First you should download the Bidder Information Package from the web. If you want to place a ‘pre-auction bid’ all you need to do is print out the bidder registration, terms & memorandum of bid provided in the DIGIBIP or contact the auctioneer and we will gladly send you the proper documents. Title insurance costs are like the recording fees they are based upon the price of the property. Title insurance and escrow services are available at the buyers’ option and extra expense. The winning bidder is responsible for closing costs which include deed preparation, transfer taxes, recording & processing fees. All properties are sold AS-IS WHERE IS WITH ALL FAULTS AND NO WARRANTEE OTHER THAN CLEAR TITLE BY DEED. All lots (parcels, homes, etc) offered at auction are sold free and clear of any liens or encumbrances including back taxes, water bills and association fees, unless otherwise noted and announced. You are the market you are the one who determines the value by deciding how much you are willing to pay for the property. We suggest that you download the DIGIBIP and READ THE INFORMATION as a starting point. We suggest that all prospective purchasers inspect the property prior to purchase and/or verify any information from independent sources. The information contained is from sources deemed to be reliable however neither the auctioneer nor seller take responsibility for the accuracy of any information contained. Please be sure you know where your purchase money is going to come from because there are no refunds of your bid deposit because you could not get financing. The property is sold without any contingency for financing or anything other than a free & clear title by deed. Right not the lending industry is hurting just as bad as the realtors are so if you have decent credit getting pre-approved is easier than ever. We try to have enough information on the property available in the DIGIBIP for a prospective bidder to bring it to their bank or lender. Please take a moment and read it again a few more times before asking what is the opening bid. To ask this question is like calling your stockbroker and asking how much IBM or eBay will close for on the stock market today. In most cases the seller is willing to deal with reality of all cash no contingency 30-day closing contract sitting in front of them. The first is when one owes more than a property is worth. The Industry Standard (and law in many places) requires the seller to obtain a certificate of release from their lender prior to or before advertising an auction as absolute or without reserve. Traditional agents are welcome as a BUYERS’ agent to represent a buyer at the auction and earn up to 3% without costing the seller or the buyer one cent more. Buyers are happy knowing they only paid one bid more than someone else was willing to pay and not an inflated asking price. Internet bidding is welcomed and encouraged however we require anyone who places Internet bids to complete registration forms, post the required deposits and to do everything any other bidder may be required to do. We strongly encourage all bidders to inspect a property by attending one of the scheduled previews in person. Auctioneer is an agent of the seller and any information provided is from sources deemed reliable but is not guaranteed. There are no ‘secret’ negotiations one-on-one like the ‘traditional’ system; the process is transparent, in the open & simple. For the few who are ready to sell, it’s a great alternative and not your last resort! Buyers who cannot close would be in jeopardy of losing any deposits + be subject to additional damages depending on the contract. For example the buyer cannot have a mortgage contingency, he must have all the funds ready to close within 30 days. To add it together, 30-45 days marketing + 30 days closing = 60 – 75 days. Typically an auctioneer will market your property for 30-45 days. They know, for example, a condo in south Florida that has been on the market for one year at a price of $250,000 is not going to go for anything near that. Keep in mind that auctioneers turn away 90% of the properties they look at based on the seller’s unrealistic expectations. This can be either published or unpublished to the public depending on the recommendation of the auctioneer. As long as your reserve price is reasonable, you can absolutely set a reserve price. For example, if the reserve price is $250,000 and the highest bid is $225,000, the seller does not have to accept the bid. A reserve price is the lowest price a property will be traded for. Closing costs and any other fees associated with transferring the property from the Seller’s name to the Buyer’s name are also typically covered by the Buyer, similar to the Buyer’s Premium noted above. Usually, the auctioneer uses all the marketing monies to implement the marketing campaign outlined above. Prior to signing a contract an auctioneer would provide a marketing budget, outlining where the marketing fees would be spent (this is required by law in some states). For example, let’s say the property is listed for $750,000 – the marketing fee would be between $7,500 and $22,500. Often times, if you include your property in a multi-property auction event with several sellers, the economies of scale kick in and your out-of-pocket fees can be reduced greatly. The rule of thumb that we hear out there is that the marketing fee ranges between 1-3% of the perceived market value of the property. Remember, there is no commission and the Buyer also pays all the closing costs, so having to pay a small marketing fee pales in comparison to a standard commission typically associated with a traditionally negotiated transaction. The money they are spending is usually the seller’s money. The commission is paid in the form of a buyer’s premium, which is a gross up on the bid price. Did it take 15 days for to notify you the bank accepted your offer, or did auction inform you it was accepted and then it took 15 days to get signed copy of contract from bank. I am trying to close on an property and was hoping for clarification. Additionally, there is an open house, so you can go through the property and inspect it at that time. I’m not an inspector (or even handy), but I’ve worked with enough properties now that I can do a once-over and have a good ballpark figure. I’m pretty good at eyeballing properties and knowing how much repair is going to cost. Keep up with that intensity and that debt will be gone before you know it. You’re taking ownership and doing something about it. 2 jobs and an eBay side hustle? A lot of people take the woe is me” pity party approach to their situation, and you’re going the opposite direction. I received the documents by e-mail and returned them via FedEx. The closing was handled by a title company out of Houston. I’d have been ticked had I won the auction to have the bank reject the amount; it’d be misleading. I’ve been sucked into them before (search for diamonds on my website and I have a good story there), so totally understand the allure. I’ve read reports online of people winning the auction but the bank refusing the offer – basically de facto, unstated reserve prices. I love a good auction, and even a bad one: real estate, antiques, storage lockers, government surplus. The closing company then took another two weeks to complete their end of the paperwork. The bank that owned this property took all 15 days to approve the sale. When properties are bought and sold through , the seller has 15 business days to accept the price. The following Monday, I initiated a wire transfer of the full amount. I called to ask if I could simply wire the entire amount and accelerate the closing. According to the contract, we needed to send in an earnest money deposit of the greater of $2,500 or 5% of the auction price. I I signed it using my iPhone, right there from the winery. As we were sitting outdoors enjoying a glass, the sales contract arrived in my Inbox. We celebrated our big win with lunch, followed by a trip to a winery. If someone else tries to put in an equal bid, I reasoned, mine would be higher. I offered a few dollars more than the minimum increment. We were at a bed-and-breakfast in the middle of nowhere, and I wouldn’t be able to find another connection if our Wifi went out. I was glued to my computer with sweaty palms, hoping that the Internet connection stayed solid. I knew that would add a few minutes to the closing time if there was a last-second bid, but I also figured that the other bidder(s) were using e-mail as a notification, and the e-mail wouldn’t go out until after the auction closed if I waited until the last minute to place a bid. It took between 1-24 hours before they would outbid me. They might be using the e-mail system, I realized, rather than watching the page. There are minimum bid increments that decrease as the price rises. When you bid, the page automatically updates to show if you’re the high bidder. It’s run in AJAX – computer-speak which means that you don’t have to keep hitting refresh” on your browser. The representative told me that if I placed the high bid, I’d have two hours to electronically sign the contract and that I’d be required to wire the earnest money deposit on the next business day. The representative wanted to confirm that I knew that it was an all-cash auction and that the property was being sold where is, as is,” with no contingencies. I also went through a mini pre-qualification process over the phone. They will put a $2,000 hold on your credit card, in case you’re a winning bidder and then back out of the purchase. When you register to bid on the property, you need to provide them with a credit card number. A couple of the properties sold for surprisingly high prices, but most of them wound up selling in a reasonable investor range. My wife and I noticed a few properties in our area that would make good rental properties (if the price was right). That means a lot of other people may come to bid on a property that you want. Soon you’ve broken your budget because you’re just trying to one-up that son-of-a-$#$&#% over there in the corner. Why I oughta…” — then you know it can become personal. If you’ve ever been to an auction, wanted something, and then been outbid by that so-and-so over in the corner who — … was that him SMIRKING at me?!? It’s not that I don’t like people (I do!), but the fewer people competing against me, the better. Since demand is higher, basic economics states that prices will be higher. — At most, 50 people attended my university’s surplus auctions, and only about 20 of them were serious buyers. I could quickly figure out whether or not I could an item would be profitable. I also researched how much each item recently sold for at my school’s last auction, so I knew my ‘wholesale’ cost. Knowing the Prices — I researched the prices of comparable, recently-sold items on eBay, so I knew the current fair market rate. I never lost money (though I make no promises that it can’t happen to you) when I purchased items at auction, even if a few items remained unsold. My transactions weren’t enough to pay for my grad school education , but it certainly covered beer money during those years. It was clear that they were doing the same thing I was, just on a grander scale. He’s got sharp insights about business, finance and life. Jason built and sold a 7-figure business after two tours of service in Bosnia. In this post, Jason describes how he bought a rental property through a foreclosure-auction website. STEP 1: Create your profile: Tell us a little about yourself and the type of home you’re looking for. Foreclosures may seem like a very scary home-purchase option but using can help take the fear out of the home buying process! Delinquency – When a homeowner fails to meet the terms of their mortgage for a prolonged period of time and after several notices. This is generally administered by a state agency and the bidders are usually required to pay cash at the time of purchase. As-is – Refers to a transaction where the property is transferred to the buyer in its current state, without any requirements for additional disclosures or any recourse available for the buyer against the seller. If you’re ready to take the plunge, do your research, speak with a professional, set a budget, prepare for the worst, and take it one step at a time. Even professional investors can end up upside down on these transactions. There will be no seller disclosure requirements either because, after all, nobody from the bank has ever lived there. The property will be transferred in as-is condition, so the buyer is taking on all of the burdens. Most lenders will not allow a transaction to close unless all of their requirements are met. Because of the uniqueness of the transaction, you’re more likely to discover additional liens on the property during closing. It’s also prudent to run a comprehensive title search and report. Often times the agent can get their hands on a recent inspection report, saving you time and money before you decide to move forward. Don’t skimp on the inspection either; it could end up costing you way more in the end if something gets missed. The bank won’t allow for any contingencies in the offer, so be sure about your decision. It’s recommended that you have a professional inspection performed prior to making an offer. This is primarily a protective measure to shield the bank from any recourse by the buyer. You can also check online public records and the county courthouse. You will want someone that can guide you through all of the twists and turns. IMPORTANT: As is” condition means that you will accept the property in its present condition; what you see now, and discover later, is what you get. Some of these agencies may assist with financing, but the IRS requires full cash payment for the property. U.S. Department of Veterans Affairs ( VA ), Small Business Administration ( SBA ), Fannie Mae, Freddie Mac, Internal Revenue Service ( IRS ), or others can save you money. The benefit here is that the lender is usually obligated to clear any additional liens on the property, including back-taxes, so it’s a much safer investment than an auction. For the buyer that means that there will likely be little room for negotiation. Generally lenders want to move this distressed asset off their books immediately and will price to reflect the market value of the property. However, when you purchase a lender-owned property, it can offer the least value and most competition. You will also want to have a clear understanding of any liens or encumbrances on the home. When buying an auctioned home it’s common not to have the right to view or inspect the property. In some instances, this as-is condition can limit how much you can inspect the property. The plumbing is drained, the hot water is turned off, and the windows may be boarded. Foreclosed homes are usually winterized to reduce the risk of damage to the property. It’s a good idea to register for a few as an observer to learn the lingo, rules, and nuances of the process. Some states may allow a good-faith deposit with a short redemption period, but more commonly you need to hand over a cashiers check for the full amount immediately. Though typically, once the loans are paid, there is no money left. When the property is sold to the highest bidder, the liens are paid and any overage is given to the homeowner. It’s important to note that during this phase the lender cannot take advantage of the property owner in any way, nor can the lender make a profit at the auction. Sometimes the property owner is not willing to remediate, and sometimes the lender is not willing to execute a short sale. Homes don’t always sell during the pre-foreclosure stage. IMPORTANT: Keep in mind that when the property enters pre-foreclosure, which is somewhat of a grace period, the owner has several months to pay off the default amount. The home is still sold in as-is condition, but the buyer may have the right to inspect the property in advance without the right to ask the lender to fix any defects. This helps the seller avoid foreclosure, and the accompanying credit history blemish, while usually translating into a discount for the buyer below the home’s market value. You can make an offer to purchase the property, but the lender has to agree with the homeowner to accept less than the outstanding balance on the mortgage loan. The owner vacates the property at the time of signing the short sale agreement. During pre-foreclosure the homeowner still has control of the property. That’s why it’s critical that you understand the risks you are taking and are willing to endure the as-is nature of the purchase and all of the baggage that entails. This damage can range from superficial, to the removal of hardware and appliances, and even the intentional damage of structural elements in the home. Often the owners will feel that the lender is acting in bad faith and will purposely cause damage to the home prior to their eviction. Chances are that if the owner wasn’t able to stay current on the bills, they weren’t able to stay current on maintenance or repairs either. It’s critical to understand that distressed properties are often treated poorly by the previous owner; after all, someone was forced to leave their home. As a group, these are considered distressed properties.” They are distressed because of both the financial situation of the owner and also the physical condition of the property. At certain stages you can get a better deal while taking on more risk, and in other stages you can absorb less risk but at the sacrifice of a bargain. If the numbers make sense they’ll make the deal, and if not then they won’t. You’re most likely communicating with the lender or bank that owns the property and for them it’s just a business decision. This means they have major major major issues like termites, wood rot, water against the foundation, rotten seals, bad roof, etc the list goes on. Comments may be held for moderation and will be published according to our comment policy Comments are the opinions of their authors; they do not represent the views or opinions of Money Under 30. Enter your email to receive our free weekly newsletter and MoneySchool, our free 7-day course that will help you make immediate progress on whatever money challenge you’re facing right now. Money Under 30 has everything you need to know about money, written by real people who’ve been there. The investor lends you the cash at a high interest rate (typically 12 to 18 percent) and looks forward to you not being able to make the payments back to him so that he can take the property. Hard money is a term used to describe money borrowed from a private investor. Therefore, you’ll need to bring a cashier’s check of the full amount of your maximum bid with the trustee’s name on it. If you get the property for less than your maximum bid, you’ll receive a refund. In Arizona, for example, you only need to put an earnest money deposit down at the auction, but you’ll only have a few days to pay in full. Due to the risks involved in buying a home at auction, that’s not going to happen. If your goal is to fix and flip the property, you need to take the ARV and subtract the repair estimates, your holding costs, listing expenses if you’re going to list it with a Realtor and the profit that you want to take as well. A friendly contractor can be very helpful in helping you price out tools and labor of any repairs that you think might need to be done. Many of the online tracking systems have tools for estimating ARV (after repair value), but a more accurate way would be to pull recent comparables and calculate the cost of estimated repairs yourself. It’s easy to get carried away with the emotion of bidding wars, but being willing to let a property go is your safety net. Calculate the maximum bid for each property that you are interested in. Write it down and stick to your maximum bid, not a penny more. You may choose to peek in through the windows or accidently” slip in if it’s vacant, but be aware of the laws and your safety! Getting access to the inside of the home before you bid on it is desirable but not always possible. Some investors don’t care much about a foreclosed house’s interior appearance, but if you plan on living in it for a while or even fixing and flipping, the inside should concern you at least somewhat. Because the auction purchases come with all existing liens and encumbrances, a title search in the form of a preliminary title report will help to identify things like IRS liens or past-due taxes that you, as the new buyer, must pay. Some title companies will charge you for this, and others will provide it for free if they feel they have a good chance of getting your business. If you bought a second position lien at auction, your purchase will still be subordinate to the first position lien, which could foreclose, wiping out the subordinate liens, so all the money you spent would be a waste. That said, ForeclosureRadar isn’t free and it’s not available in all 50 states, so you may have to do some research on your own. You can even download a ForeclosureRadar application to your phone so that instead of printing out a daily list and bringing it with you to the auction, you can just pull out all the details of the day’s auction on your phone. ForeclosureRadar is one of the best services I’ve found to find pre-foreclosures in your specific criteria such as zip code, age, number of beds and baths, etc. But just looking in the newspaper won’t give you the up-to-date information you really need. Notice of Trustee Sales or Sheriffs sales are published in a local newspaper weekly for a few weeks before they are sold at auction. Notice, for example, that most bidders wear sunglasses and keep their hands in their pockets; these tricks help them from showing their emotions whether it be excitement or disappointment. When you’re at the auction, get a feel for the bidding process and the way that people act. After all, you see the opportunity to get a lot more houses for a lot less money. Grayson holds certificates from the University of California campuses at Irvine and San Diego. Her articles have appeared in publications for Oxford and Harvard University presses and research publishers, including Facts On File and ABC-CLIO. Lee Grayson has worked as a freelance writer since 2000. The sellers sign the property deed after the winning bidder completes the financing or makes cash payment for the property. The winning bidder signs the purchase agreement for the property. Bidders receive bidding numbers or numbered paddles to indicate an offer during the formal bidding process. Most sellers set a minimum price for the sale, called a bid reserve. Sellers list properties with licensed auction firms rather than using traditional real-estate market listings for a variety of reasons. Another tip is to stick to your pre-determined maximum bid. Read the terms of sale or phone ahead to be sure of the method of acceptable payment. By contacting them well ahead of the date of the auction, you’ll be able to properly file any documents that are required. You’ll need to estimate the value of the property to avoid overpaying. They, therefore, will in most cases sell the property to the highest bidder, even though they stand to lose thousands of dollars or even tens of thousands of dollars. When a bank decides to sell a REO property at auction, they are usually very ready to sell. The bank then may decide to hire an auctioneer/broker to sell the property. If the current home owners still occupy the home, they may not be eager to allow you into their recently defaulted home to see what you’re bidding on. There is also a chance the home is in disrepair if the owners failed to make payments, and is something to consider before making an offer. If someone bids more than $200,000.00, the high bidder will be the purchaser of the property. If say, $200,000.00 is owed on the property the bank may decide to bid to the $200,000.00 to protect their investment in the property. Zillow is not responsible for the content on such third party sites and does not necessarily sponsor, endorse or otherwise approve of the materials appearing on the sites. The content may include links to other sites owned and operated by third parties. Veteran bidders conduct title searches on the properties in which they’re interested. Listen up. You may hear the auctioneer say something like: This property is sold subject to all liens and encumbrances.” That means the winning bidder is responsible for past-due taxes and liens imposed by contractors or the Internal Revenue Service. If your dream property is one of the first auctioned, you may be in luck. The first few properties offered often sell for less because bidders are trying to figure out pricing patterns. Make a set of photo and info sheets for each property, along with your top bid, just to avoid confusion on auction day. Calculate necessary improvements, based on a worst-case scenario” (replacing plumbing, electrical, etc). Your plans for the property will affect your maximum bid price. If you win this property at auction, will you live in the house? If it’s a disaster, there’s a chance the interior will be, too. If it is occupied, there’s a good chance the home has working plumbing and electricity, but this is not guaranteed. Study the home – You probably won’t be able to get into the home, but you should be able to tell if anyone is living there. Beware the neighborhood that is peppered with foreclosed properties; this may be a sign that values are still dropping there. Narrow your area – Choose a few neighborhoods to research. Be aware that auction dates often change or are postponed, so be sure to confirm specifics with the lender’s attorney or the trustee. You’ll also find states where the entire balance is due the day of the sale. In some cases, you must bring a percentage of the winning bid price in the form of certified funds, the balance being due in 30 days. You may see some buyers dressed in suits standing near the auctioneer in an effort to convince other bidders they’re representing the lender; such posturing may scare other attendees away from a bidding war. Sometimes these two processes are occurring at the same time. Tax-forfeiture occurs when an owner can’t pay their property taxes. His books, published originally by Harper & Row, have sold more than 300,000 copies. If the residents won’t move, you may need to contact an attorney who can obtain an eviction notice and arrange for a sheriff to clear the property. In some cases, you may be able to find utility records that can help you better understand property issues. Estimating repairs can be difficult because if the property is occupied, the residents may not want visitors. Each property is unique, so repair requirements can vary widely. Will there be any liens that will become my responsibility after the sale? Speak with a local attorney for details before bidding. In some jurisdictions, there may be an equity of redemption right that allows the borrower who defaulted to regain title to their property under certain conditions. Typically, they have 15 days to do so. Once an answer comes through, there’s an additional period required to arrange closing, which may take several weeks. Can I bid $1 more than the next bidder and win the property? With an absolute auction, one bidder will win, while with a reserve sale, it’s possible that no bid will be sufficient. People debate this question, but it’s largely a matter of personal preference. Get to know local auctioneers, brokers, attorneys, repair specialists and appraisers who specialize in foreclosures. Learn the mechanics of the auctioning process in your community. Ask auctioneers about financing and pre-approval requirements. What does matter is that successful bidders have the financial ability to close the deal on time and in full. Technically, it doesn’t matter if the funds come from you or a lender. This depends to a great degree on the laws in your state. The term all-cash” generally means the ability to put down a deposit immediately after a successful bid and close within a short timeframe. They want the money in case someone bids and wins, but doesn’t close the deal. As with a rental car reservation, you’ll typically have to provide a credit card number and expect the auction company to take a given amount to hold. Are foreclosures riskier than existing home purchases? Is there a lot of local sale and rental demand—or a little? How much would a given property be worth if it was in pristine condition? Be aware that trespassing and Peeping Tom rules may limit access unless you’re invited onto the property. It’s important to visit the property before the auction, if you can, especially if you live locally. In all cases, bidders should review disclosures with care and seek as much information as possible about the property. The condition of the property may range from wonderful to awful, and it may or may not be occupied. The property may be sold on an absolute basis (the highest bid wins, even if it’s for a tiny amount) or with a reserve or minimum bid (the property has to sell for at least a given price, otherwise the lender gets title). The property is sold as is, where it is, and with any existing faults and limitations. There are no terms to discuss, no haggling over paint or appliances. Sales of distressed homes usually come in several forms. The IRS also allows a property owner to redeem the property if back taxes are paid within 120 days. Decide what your maximum bid price is and stick to it. Do not allow yourself to get caught up in the bidding and go over the price you decided you are willing to pay. Inquire about town by-laws, ordinances, zoning issues and toxic or hazardous waste issues that may affect your purchase decisions. Or, they will disclose the amount of outstanding debt that the new owner must assume, in addition to the house’s bid price. Most reputable auctioneers provide a current title assessment that indicates that the property is free of all debt. A title search will locate outstanding debts, including unpaid taxes and property liens, as well as previous construction debts that can reveal unknown condition issues. Get pre-qualified for a mortgage from a bank or mortgage lender so you know how much buying power you have. After a bidder enters into the bidding, she sometimes indicates her continued bidding to the auctioneer with a head nod or hand movement. Watch the crowd carefully to spot who is bidding and notice how they bid. Pay attention to the auctioneer’s selling practice and how he calls for bids. Notice what fees the auctioneer charges and any money the winning bidder must pay in addition to the winning bid price. The auctioneer or property owner is legally responsible for disclosing this information to all interested parties prior to accepting bids. In addition to the cost of the home, you may need to settle unpaid tax bills if you win. He enjoys books, football, Scotch, unusual video games, Southern architecture, and learning new random subjects. Above all, be sure you can pay for it. If you withdraw a winning bid, you will face steep penalties. This is usually because the current tenant forbids it, and an angry tenant could decide to trash or gut the place before moving out after the sale. There can be serious maintenance issues with the home needing to be addressed before it may even be live-in ready, and even move-in ready homes at auction can be quite outdated on the inside. Buyers planning to bid for a property should be prepared to pay for the property at the auction, so come with a cashier’s check for the specified amount of money the auction holder requires to complete the purchase. The starting price of a property might be the balance remaining on the mortgage, or possibly a lower amount just to get bidders interested. Newspaper ads and online searches are good places to start. While it’s not for everyone, many people are intrigued by the possibility of nabbing the winning bid on a good property for a cheap price. By using this site, you agree to the Terms of Use and Privacy Policy Wikipedia® is a registered trademark of the Wikimedia Foundation, Inc. Text is available under the Creative Commons Attribution-ShareAlike License ; additional terms may apply. Instead the mortgagee realises the security through sale, the exercise of the power of sale also being regulated by statute. In California and some other states, original mortgages (the ones taken out at the time of purchase) are typically non-recourse loans; however, refinanced loans and home equity lines of credit aren’t. Lender’s ability to pursue deficiency judgment may be restricted by state laws. If the mortgage is a non-recourse debt (which is often the case with owner-occupied residential mortgages in the U.S.), lender may not go after borrower’s assets to recoup his losses. It gives lender a legal right to collect the remainder of debt out of mortgagor’s other assets (if any). Deficiency judgments can be used to place a lien on the borrower’s other property that obligates the mortgagor to repay the difference. The mortgagor may be required to pay for Private Mortgage Insurance , or PMI, for as long as the principal of his or her primary mortgage is above 80% of the value of his or her property. In the case where the remaining mortgage balance is higher than the actual home value, the foreclosing party is unlikely to attract auction bids at this price level. However, there are a number of issues that affect how pricing for properties is considered, including bankruptcy rulings. At least one textbook has attacked the paradox inherent in the tender rule—namely, if the borrower actually had enough cash to promptly pay the entire balance, they would have already paid it off and the lender would not be trying to foreclose upon them in the first place 21 —but it continues to be the law in the aforementioned states. However, the debtor may have to post a bond in the amount of the debt. To keep the right of redemption, the debtor may be able to petition the court for an injunction. The holder of a mortgage without this clause has only two options: either to wait until all of the payments come due or convince a court to compel a sale of some parts of the property in lieu of the past due payments. The vast majority (but not all) of mortgages today have acceleration clauses. The Lender will also include any unpaid property taxes and delinquent payments in this amount, so if the borrower does not have significant equity they will owe more than the original amount of the mortgage. When the 10 or 30 days have passed that means that the acceleration has expired and the Lender can move forward with foreclosing on the property. Once the Borrower(s) receives the two letters providing a time period to reinstate or payoff their loan the lender must wait until that time expires in to take further action. This letter is called an FDCPA (Fair Debt Collections Practices Acts) letter and/or Initial Communication Letter. Also in the acceleration of the mortgage the lender must provide a payoff quote that is estimated 30 days from the date of the letter. Demand/Breach letters are sent out by Certified and Regular mail to all notable addresses of the Borrower(s). In the letter it informs the Borrower(s) that they have 10 or 30 days from the date on the letter to reinstate their loan. The notice of acceleration is called a Demand and/or Breach Letter. The most common time periods allot to debtor(s) is usually 30 days, but for commercial property it can be 10 days. Each mortgage gives a time period for the debtor(s) to cure their loan. The clause in the mortgage also instructs that a notice of acceleration must be served to the obligated mortgagor(s) who signed the Note. It can declare the entire payable debt to the Lender if the Borrower(s) were to transfer the title at a future date to a purchaser. When a term in the mortgage has been broken, the acceleration clause goes into effect. Not all accelerations are the same for each mortgage, as it depends on the terms and conditions between lender and obligated mortgagor(s). Acceleration is a clause that is usually found in Sections 16, 17, or 18 of a mortgage. As in judicial sale, the mortgage holder and other lien holders are respectively first and second claimants to the proceeds from the sale. This process involves the sale of the property by the mortgage holder without court supervision (as elaborated upon below). In some states, like California and Texas , nearly all so-called mortgages are actually deeds of trust. In some rather rare instances, foreclosures are filed in federal courts. A judicial decision is announced after the exchange of pleadings at a (usually short) hearing in a state or local court. As with all other legal actions, all parties must be notified of the foreclosure, but notification requirements vary significantly from state to state. These sites will also sell houses occupied and make the winning bidder be responsible for evicting or coming to other terms with the occupants. I plan to write a more detailed article on the other types of auctions, but for now know that each site has different terms and procedures. Many times they have no idea how the process works and you can build report by telling them how it works and what the timelines are. I also tried to talk to the occupants before the sale to get as much information as I could. Some investors will try to get into homes before the sale, but if caught it is trespassing and could be breaking and entering as well. After interest and carrying costs we ended up losing money. The lawsuit had not been recorded yet and we had no way of knowing about it. In the end the lawsuit was thrown out, but it took the judge one year to look at the case and we had to hold the property that entire time. After winning the bid we found out the previous owners filed a lawsuit against the bank claiming the bank foreclosed wrong. We had an and E that showed we were bidding on a first position note and we viewed the home before the sale. I have also seen new investors bid on a second loan assuming it was a first loan before. Some states have redemption periods as long as 6 months! Some states give much less notice of what houses will go to the sale and what the bids will be. I have heard some areas only have hours to research properties before they are sold. This requires bringing cashiers checks for the amount of money you want to bid. In Colorado there is no guarantee you are bidding on a first loan or you will get a clear title. A junior lien holder can redeem the property by paying off the first bid amount plus interest in full. There is a short redemption period for junior lien holders in Colorado that lasts at least 10 days. The winning bidders must sign a form and have until noon on Wednesday to come back to the office with a cashier’s check for the full amount of the bid. Pre-sale list is published every Monday afternoon, which lists the properties going to sale and the starting bid. The bank can also start the bidding at less than what is owed. The bank or lien holder will make a starting bid, which may be what is owed on the loan including late fees and interest. The experienced investors know how much they can pay for houses that come with all this risk and still make money. There is no guarantee you are even bidding on the first loan. In Colorado we are given the sale list for properties two days before the sale. If your financing falls through or you find a problem in your inspection you usually get your earnest money back. You have to evict them or possibly honor their lease if they have one. The less people you have to compete with when buying a house, the better chance you have of getting a great deal Many times auction companies will have strict criteria for buying their houses.