Buyers FAQ

  • Why is this property selling by auction method instead of the traditional listing method? Simply put, it was the best option for the current owner of the property. There are many reasons that sellers prefer to sell auction including taking advantage of an accelerated sales process, minimizing the holding cost of keeping the property longer, and more. But one of the largest attractions to using a professional auction service for real estate is because the process exposes the property to a large number of potential buyers in one organized setting.
  • What should I look for when I attend a real estate auction? The best buyers are the most informed buyers. Get as much detailed information as you can ahead of time and preview the property at any open houses in advance so when you show up at the auction you’ll be able to concentrate on the bidding that will fit your needs and budget.
  • What do I need to do to bid at a real estate auction? Always read the published terms & conditions for the auction and speak with the auction team members responsible for the auction to make sure you know what you need in order to bid. Again, this can and should be done in advance of the actual auction. Carefully review the Property Information Package (PIP) and complete any further due diligence that is important to you. Always seek professional advice as much in advance as possible including an attorney to review documents and your financing institution. This is especially important when knowing what the required deposit is far in advance to the auction. Also be prepared to sign the Purchase & Sale Agreement if you are the high bidder.
  • Do I need to register to attend a real estate auction? Generally you may attend any public auction as a spectator. But to be a bidder, you must register. Registration is usually easy and quick. Arrive at the auction site at least 30 minutes prior to the start of the auction and visit our registration table and we will be glad to walk you through the process.
  • How do I preview auction properties and perform a property inspection? Most of our properties are open for inspection prior to the auction date and one hour prior to the scheduled auction time. Please feel free to bring your consultants to the preview. The dates and times will be listed on the property page on our website.
  • What are the advantages to the Buyer at Auction? The buyer knows the seller is fully committed to sell! In an “absolute auction” the agreements obligate the seller to transfer title to the highest bidder. In a “non-absolute” auction, the agreement obliges the seller to transfer title to the highest bidder that meets or exceeds the reserve price. The buyer knows he is getting the property at fair market price because “value” is being set by “how much someone is willing to pay.” One side benefit for the buyer is that they can feel comfortable with the purchase knowing that others would have been willing to pay about the same amount for the property as the bid.
  • What are the various types of auction? There are three different types of auctions: Absolute auction, Reserve auction, and Minimum Bid. Absolute auction is when the seller is legally required to sell the property at the auction regardless of the final bid price. The main advantage of an absolute auction is that it generates maximum responses from the market. Since a sale is guaranteed, regardless of the price, buyer excitement and participation are heightened. As a result, the price of the real estate can be maximized. These are also referred to as “no-reserve” auctions. Reserve auction is when the seller reserves the right to reject the final bid price. The chief advantage of this type of auction is that the seller isn’t obligated to accept a price other than the reserve or minimum price that the seller believes to be acceptable. Minimum Bid is a variation of a reserve auction. The suggested opening bid that is published must be a number that grabs a potential buyer’s attention. Typically, this number should be well below the market value or last exposed price.
  • Where can I get more information on auction properties? Property Information Packages (PIPs) are typcially available in advance of the auction and can be obtained by request at Tays Realty & Auction, LLC. The PIPs often include terms, deeds, general information, tax maps, assessor’s cards, Purchase & Sale Agreements, etc. Almost every auction property is sold “As Is – Where Is” and should be fully inspected prior to bidding!
  • What are the Terms and Conditions of the auction? The terms and conditions govern the sale. The terms and conditions include information such as, the required deposit amount, the date of when the property will close, and other key facts. Summaries of the terms and conditions are available within the property information package. Please note that the day of an auction sale, any announcements made by the auctioneer take precedence over any previously published or verbally conveyed terms and conditions because they reflect any changes made by the seller.
  • Do I get a good title? Yes. Properties are transferred by deed prepared by seller with insurable title as determined by the title/closing company indicated on the contracts, which also prepares and issues a customary owner’s title insurance policy. Current year’s property taxes are pro-rated through day of closing per local method.
  • Can I use my own title company? With some transactions, you can select your own title company and other transactions require the use of a specified closing company. Please see the terms and conditions for the specific auction or contact an auction team member.
  • Can I use bank financing? Yes. However, there are no contingencies (i.e. financing, appraisal or inspection) at auction, so you should be pre-qualified by a lender as to the amount you can afford to spend for a property being sold for cash “As Is – Where Is” and make sure you can close within the required closing period. You should also make sure you are prepared for any deposits at the time of auction.
  • What Is Meant By “Suggested Opening Bid?” The suggested opening bid is the number that the auctioneer considers a fair starting point for the oral or online auction. The suggested opening bid is not the seller’s “reserve” number.
  • What does it mean to buy the property in “as is” condition? Buyers purchase the properties with no guarantees in regard to the condition of the properties. However, we do our best to provide as much information about each property that we can to assist you in your due diligence. Buyers should always rely entirely on their own information, judgment, and their own inspection of the properties prior to bidding.
  • What is a Buyer’s Premium? A Buyer’s Premium is a percentage that is added to the bid price to determine the total purchase price. For example, if there is a 10% Buyer’s Premium. If you bid $100,000 on a property, then the total purchase price would be $110,000 ($100,000 plus $10,000 Buyer’s Premium).

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