Frequently Asked Question At Auctions.

Buyers Frequently Asked Question At Auctions.

Q:

I have never been to an auction before, but I am interested in one of your properties. What do I need to do to participate?

A:

Buying a property through a process that is unfamiliar to you can cause some uncertainty. You are wise to be looking for answers before the auction. Frankly, purchasing at auction is very similar to the way it was throughout our hot real estate market. You need to be very sure that you have examined the property so that you are confident in what you are buying. You should speak to a lender and get a very good idea of what you can spend on the property because if you are the high bidder you won't have a contingency to acquire financing. You will need to be prepared to show proof of your deposit in order to be qualified to bid. Each property has a specific deposit requirement - you will need to review the terms and conditions of the property that you are interested in to know what the deposit requirement is. And, lastly, if you are the high bidder you will need to be prepared to go to settlement within 30 days of the date of the auction.

Q:

How will I know if the property has hidden liens against it?

A:

Most of our properties will have a mortgage against them that must be satisfied at closing. Regardless of what liens may exist both known and unknown, the seller is required to convey clear and marketable title for closing. If the seller cannot provide clear and marketable title there is no penalty to the buyer and the deposit is returned.

Q:

We will be out of state at the time of the auction. Is there a way to bid without being there?

A:

Absolutely! Although not all our auctions have an online deposit option, we can make arrangements for you to bid remotely on any property. You will to post your deposit with us since you will not be present to do so on the day of the auction. You will also need to sign the Terms & Conditions of the auction prior to the auction day. You can either call in at the time of the auction and bid trough one of the bid assistants ( you will hear the live auction in the background and they will guide you through the process during the auction ) OR you can identify a person to bid on your behalf through a limited power of attorney. If you are the high bidder a contract will be faxed or emailed to you immediately following the auction. You will need to sign the contract and return it to us right away. We will gladly accommodate you in Any way that we can make the process easier for you so you can comfortably bid from afar.

Q:

Since we buy "as is" can we get a home inspection and a termite inspection before we bid?

A:

Of course you can arrange to have the property inspected. Just keep in mind that you will bidding on it "as is" regardless of what your inspection process reveals...you will need to bid accordingly.

Q:

What happens if we are the high bidder and then we cannot get a loan for the property?

A:

You will need to be sure that you can get a loan and for what amount prior to the auction. If you are the high bidder and you cannot perform you will forfeit your non-refundable deposit. If you would like to referred to a lender to assist you in determining your high bid comfort level please let us know and we will be glad to provide you with contact information.

Q:

We will be getting a 100% loan and do not have the money needed for closing and will require assistance. Is that possible trough the auction?

A:

There are ways that our auction firm can assist in structuring your high bid contract so that you can get the closing assistance. You or your agent will need to make arrangements in advance of the auction so that we are all prepared on the auction day.

Q:

We are transferring to the area and we would like to buy one of your auction properties but we cannot wait for auction because of our relocation schedule. Is it possible to buy it before the auction?

A:

All of our properties are subject to prior sale which means that the seller has the right to accept an offer prior to auction. However, you are encouraged to make an reasonable offer if you are serious about buying the property out of the auction. Our seller have chosen to go to the auction route(versus bankruptcy and foreclosure sales ) and will not be inclined to entertain a low offer prior to auction.

Sellers Frequently Asked Question At Auctions.

Q:

Why would I consider using the auction method to sell my property?

A:

To accelerate the sale of your property by generating additional consumer interest and activity. Non- contingent contracts and 30 day settlements are required of all buyers of auction properties. This means a quick and clean transaction for you.

Q:

Can I attend an auction before agreeing to sell my home through the auction method?

A:

Certainly! We encourage your attendance and we will be pleased to have you experience a live example of the auction process. Just talk with the Auctioneer or your Auction Coordinator about our upcoming auctions. Since many of our properties sell before the auction you will want to touch base with us before you actually attend the auction to be sure it is still available

Q:

I am not in financial trouble and I am concerned of what people might think if I should do an auction. Can you offer any insight on this?

A:

Many people are afraid of the outdated perception of auctions that some people have. There are great differences in the marketing -and the public perception- of a voluntary or "by choice" auction versus the distress auctions that are mandated by the bankruptcy and foreclosure processes. Our auctions are positive, enthusiastic events designed to generate competitive bidding to secure the highest possible market price for you property.

Q:

Will you tell me what my property will sell for before I sign up for an auction?

A:

We will recommend an auction strategy for auction that you should create a competitive environment through which you will see fair market value. Truthfully, it doesn't matter how you sell your property...whether you use the traditional selling with a broker...or for a sale by owner process OR the auction...the end result is going to be the same! Why? Because the end result is dictated by the market NOT the method. The auction is powerful marketing strategy that will bring forth the reality of the market within your time frame.

Q:

I am concerned about the net amount I'll realize from the auction because I have to cover my mortgage. What advice do you offer?

A:

We understand your concerns and your need to cover an existing mortgage on your property. Auctions are designed to accelerate the sale of the property by determining what the market is willing to bear. On the auction day, the market will determine what valuation is acceptable for your property. The fact that you are doing an auction does not change what the market value of your property is. In short, if the market value is at a level below your existing mortgage, then that is the price that you will have to work with regardless of whether you use the traditional method or the auction method to sell your property. It is possible, however, to auction your property with a minimum bid that you are wiling and able to accept.

Q:

My agent has no previous experience with the auctions will this impact my result?

A:

No. You will be assigned an Auction Coordinator to work with you and your agent throughout the entire process to assure that your auction transaction is a smooth one. We recommend that your agent consider becoming a Certified Auction Specialist, however we will provide guidance every step of the way. You and your sales associate can have complete confidence in our team of auction professionals and in our comprehensive auction marketing program.

Q:

What type of properties do you sell?

A:

We auction all types of real estate from condominiums, townhomes, single family dwellings, land vacation properties, commercial and investment properties to high end trophy properties and country estates. We have been successful in all categories.

Q:

How often do you conduct auctions?

A:

We conduct major auctions throughout the year. Please check with your sales associate or one of our auction coordinators about registration deadlines to enter a property into auction.

Q:

What are the various auction methods?

A:

There are three different auctions available through our company:

1. Absolute auction
2. Minimum bid auction
3. Reserve/confirmation action

Q.

What is the best auction method to use?

A.

We believe that the surest way to generate the most competition is through an absolute auction (sold to the highest bidder regardless of price), however if the seller can't or won't embrace the absolute auction method our next best recommended auction would be the minimum bid auction. The minimum bid will be set at an aggressive level in order to create competition. The minimum bid is designed to bring forth an exaggerated version of the escalating environment that you saw throughout the "hot" market.

Q.

If I put my property up for auction do I have the right to refuse the high bid?

A.

On a minimum bid auction you have the right to refuse offers below the minimum bid level. On a reserve auction you have the right to refuse anything below the agreed upon reserve. On an absolute auction the property is sold to the highest bidder regardless of price.

Q.

Who pays the auctioneer's fee?

A.

Generally the auction firm will implement a "buyer's premium". This is a fee that is added to the high bid on auction day - it was introduced by Christi's and Sotheby's years ago. We chose to use the buyer's premium as the means to compensate all agents. Consequently, the seller no longer pays commission from the proceeds of sale on auction day transactions.

Q.

Will we still have to consider contingent contracts?

A.

Everything that we sell at auction is sold "as is", without contingencies and with a 30 day closing requirement. There are times on a pre or post auction offer that a contract contingent upon a home inspection or financing will be presented to you for consideration.

Q.

Does "as is" mean that I don't have to disclose any known defects?

A.

Though we are selling "as is" we must abide by state and federal law in terms of disclosure. For instance, we must allow for the contract o be contingent upon Condo/HOA document review as is required in any real estate transaction. Your sales associate will offer full disclosure to all interested parties in accordance with the law as always.

Q.

Do you inspect the property to determine the best method of auction?

A.

Not necessarily. We don't need to preview the property in order to propose an auction program that would be best for you. We evaluate your competition and the pulse of your immediate market to determine a strategy for auction.

Q.

What is the next step if I want to further consider the auction option?

A.

You will first need to call in to our live conference call to hear a complete overview of how and why the auctions work. Our Corporate Auctioneer has had more than 4,000 auction transactions and will be the moderator of this conference call. If you are interested in pursuing the auction after you have participated in the conference call the next step is to have us evaluate your property in order to make a recommendation for auction. There is no obligation to participate in the conference call or to have your property evaluated.

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