AND BUYING WITH CONFIDENCE!!
There are many benefits to purchase real estate at auctions,
however, every auction company has his own rules and regulations and every single
auction is unique for itself. Therefore, like in any other transaction, due
diligence is required. The following is a list of the benefits to the buyer at an auction
from the National Association of Realtors as well as a Guide to prepare and bid at an
auction. If you follow these steps, you should be able to bid with confidence and maybe
become the winning bidder for the property.
TO THE BUYER (according to the National Association of Realtors)
investments are made as properties are usually purchased at fair market value through
knows the seller is committed to sell
multi-property auctions the buyer sees many offerings in the same place at the same time
determine the purchase price
eliminate long negotiation periods
reduce time to purchase property
and closing dates are known
they are competing fairly and on the same terms as all other buyers
receive comprehensive information on property via due diligence packet
Attend an auction Attend an auction! Check the local newspapers or join
our mailing list for auctions in your area. Attend and observe one or more auctions and
familiarize yourself with the process before you attend an auction as a bidder. Auction
companies differ in the amount of "due diligence" information they provide and
how they conduct an auction. The auction process happens quickly, so knowing what to
expect is important, when you decide to buy. If you have questions about what you saw,
email or call us.
Prequalify yourself Prequalify for financing. Real Estate Auctions
usually do not have financing contingency clauses and therefore you are obligated to close
if you are the highest bidder. Unless you are a cash buyer, increase your comfort level by
getting approved for financing before you decide on a property to buy. Call your lender in
time to get approved. It is best to know what you can afford to pay for the property
before you bid. Now you will be able to bid with confidence!
Do your "Homework" Do your "Homework" Find out as
much as you can about the property. Download the Property Information Package (PIP). Our
Property Information Package (PIPs) contain photos, property descriptions, terms of the
sale and financing information, sample Purchase & Sale Agreement, property taxes &
assessments, maps, plans and many other pertinent documents. PIP are available online in
Adobe Acrobat (.pdf) format.
Inspect the property Remember, at auction, you are buying "as is,
with all faults". Attendance at an "open house" will allow you or your
representative to see first hand what you are bidding on and help determine value and
desirability. This will help you to bid with confidence.
Plan your bid strategy Determine your bid limit after examination of the
property and all available information. Plan to compete. Most bidders will be thinking in
the same price range. The one who bids that number first, wins the day.
Register to bid On auction day, it is to your advantage to arrive at the
auction site 1 hour before the auction. By doing so, you will have more time to consult
with on-site staff who are prepared to assist you with your last minute questions
regarding the property and the auction process. Upon completion of registration you will
receive a Bidders Card containing your bidders Number and the general terms of sale.
Bring required deposit You will be required to show proof of your
deposit in order to register at the auction. You should have a blank personal check with
you. When you are the successful high bidder at the auction, you will be required to
affirm your bid with a signature on the Purchase and Sales Contract and provide an
executed check for the required deposit to the auction company or Seller's attorney.
Deposit requirements and amounts are clearly described in the "TERMS" section of
Prepare for "Q&A" Prior to the start of bidding, Premier
Auction Group will conduct a Question and Answer (Q&A) session. This is your
opportunity to ask any last minute questions before the auction begins. You should come to
the auction prepared to ask your questions. If you arrive early enough, you can question
Premier Auction Group staffers at that time. The auctioneer may ask you to repeat your
question during the Q&A, if he believes it to be of interest to all bidders. Our job
is to raise comfort levels of all bidders with the auction process, the property we are
selling and the auction company. The Q&A is important to the success of these goals.
Only registered bidders will be allowed to ask questions at this session.
Bid Aggressively Until the "hammer falls" or you have reached
your limit you should compete aggressively. There can be only one winning bidder for the
property. You cannot buy at your price unless you BID your price. GOOD LUCK WITH YOUR
Absentee Bids If you are unable to attent the auction, you have the
option to leave a book bid or send somebody else to
bid for you. You are required to register with Premier Auction Group at least
48 hrs. before the auction and deposit an Absentee
Bidders Earnest Money Check which is fully refundable if you are not the highest bidder.
Please contact Premier Auction Group for the details of Absentee Bids for the specific
auction you are interested in.
Contact us The Real Estate Professionals at Premier Auction
Group are prepared to supply you with information, over the telephone (800) 554-9824 or
email firstname.lastname@example.org, concerning specific properties as well as the auction process itself.