Buying at Auction
Can I inspect a property before the auction?
Yes. Most properties will have open public inspection periods and we recommend you perform any inspections before auction day. The dates and times for public inspection are listed on each property’s detail page. Additionally, properties are available for public viewing through licensed real estate brokers/agents.
What is a buyer’s premium?
The buyer’s premium is paid by the buyer and used to compensate the real estate broker representing the buyer and/or the broker or auctioneer representing the seller.
Do I get insurable title?
Yes. Most properties are transferred by deed prepared by the seller (i.e. special, bargain and sale, quit claim, etc.) with insurable title as determined by the title company indicated on the contract. A customary owner’s title insurance policy is issued for each property.
Can I use my own title company?
Yes. However, the terms of sale which are stipulated in the contract will still apply. Specifically, that the insurable title as prepared and offered by the indicated title company shall be the standard agreed to and accepted by the parties for conveyance and that the buyer shall pay all costs already incurred and required by that title/closing company. Therefore, you may use your own title company to close the transaction, but you may still be responsible for some costs incurred by the original title company.
Is there a reserve price?
All properties are auctioned subject to seller confirmation (a reserve auction) unless otherwise disclosed as absolute or without reserve. Properties sold subject to seller confirmation or reserve may not have a published reserve value, and the high bid is simply subject to seller approval. Properties auctioned absolute or without reserve have no reserve value and the property will sell to the high bidder on auction day.
Can I use bank financing?
Yes. However, the properties are being sold without contingencies, “Cash, As Is, Where Is” so you should be pre-approved by a lender as to the amount you can afford to spend for a property being sold for “Cash, “As Is, Where Is.”
Do I need to use a real estate agent?
An auction provides a clean, time definite, exchange between the parties and traditionally allows the buyer to minimize the number of intermediaries separating him/her from the seller. Although as the auctioneer Warner Real Estate & Auction represents the seller, we have the responsibility to treat all parties fairly and in accordance with real estate law. If a buyer feels more comfortable having representation at an auction, he or she is welcome to have a licensed agent register the buyer as a client, attend the auction, and assume the role of a buyer’s agent.
Will I know on site if my bid was accepted?
If you are the high bidder on a property selling absolute or without reserve that means there is no reserve value and the high bid is the sale price. If a property is not being marketed as absolute or sells without reserve the high bid is subject to seller confirmation or approval. For properties subject to seller approval, the high bid is irrevocable for a period of 14 calendar days.
What does buyer’s choice mean?
In this method of auction, bidders compete for the right to choose first from a pool of similar properties. The high bidder may choose one, some or all of the like properties offered. If the high bidder chooses multiple properties, then the high bid is multiplied by the number of properties the high bidder chose. If the high bidder takes less than all of the properties, then the bidding begins again and the subsequent high bidder now wins the right to choose first.
Is the down payment deposited?
Yes. All down payment funds are deposited in less than 24 hours of the auction if the property is selling absolute or without reserve, and within 24 hours of acceptance on all properties sold subject to seller confirmation (unless otherwise required by statute), so you should transfer funds into your checking account prior to the sale (if a sale is not approved, down payment is immediately returned).