Frequently Asked Questions - Real Estate Auctions

Frequently Asked Questions - Real Estate Auctions

1. Does this property qualify for FHA financing?

Yes, the property qualifies for FHA financing or conventional financing.

2. What is the required deposit for this auction?

This auction only requires a 5% deposit. If you are the successful bidder this will be paid the day of the auction and the balance will be paid at closing in 30 days or less.

3. Can I have a home inspection done?

Yes, you are encouraged to have a home inspection, but it must be done prior to the auction. All due diligence, including inspections and any other evaluations, must be completed before bidding.

4. What’s the difference between a traditional listing and an auction?

The main difference is that auctions have no contingencies. In a traditional listing, offers can be subject to financial approval, home inspections, or other conditions. At an auction, there are no contingencies, which is why you must be pre-approved for financing and complete all due diligence prior to the auction.

5. How long do I have to close on the property if I win the auction?

Winners of the auction have a 30-day period to close on the property. 

6. Are there any additional fees I should be aware of when bidding?

There is a 10% buyer's premium on this property. For example, if the property sells for $100,000, then the total sales price will be $110,000. Taxes are pro-rated. Meaning that you will only owe the taxes for that calendar year from the closing date forward. 

7. How do I participate?

You will create an account if you do not already have one. Once that is completed you will agree to the terms and conditions of the auction. At that point your registration will be placed in a pending status. Once we receive your proof of funds or pre-approval letter your registration will be approved and you can begin placing bids!

8. What happens if I win the auction?

If you win the auction, you will be required to sign a contract and pay the 5% deposit immediately. From there, you will have 30 days to complete the closing process.

9. Can I visit the property before the auction?

Yes, potential buyers are encouraged to visit the property. Please contact our office to schedule a viewing appointment. We recommend visiting before bidding.

10. Do I have to pay for the entire property upfront like at sheriff sale?

No, we only require a 5% deposit for the property on the day of the auction. The balance is paid at closing in 30 days or less.