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Questions and Answers
| Auction Dictionary |
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Q: Do I need to register to attend and bid at the auction?
A: Yes. Registration is free, but you need to register and be pre-qualified to attend and bid. Registered bidders may bring 1 additional guest to an event. We require a Prequalification Letter from one of our participating Lenders or Brokers found on our Financing page. You are free to use your own lender for closing, but you must be preapproved by one of our participating Brokers or Lenders to attend and bid.
Q: What types of properties will be sold at this auction?
A: Most properties are single-family residences, condominiums, townhomes and 2-4 unit multifamily residences. Occasionally we sell commercial and industrial properties, as well as vacant land.
Q: Who owns the properties that are being sold at auction?
A: Most properties were acquired by lenders through foreclosure or other similar processes. Some properties are owned by individuals.
Q: Are Real Property auction sales "Subject To Seller's Confirmation"?
A: Yes, all real estate property sales are "Subject to Seller's Confirmation" unless otherwise advertised in the auction catalog.
Q: How long can a Seller take to accept my Offer?
A: Sellers are given 7 Days to Accept, Reject or make a Counter-to your Offer. You may cancel your Offer if an answer is not received within 7 Days, and you will receive a full refund of your Earnest Money Deposit. If you wish to wait longer for a Seller's response, you will be given an extra day's extension to the original closing date for every day the Seller delays in responding. We strongly encourage Sellers to be present at our auctions; however, since many are Bank or Asset Management Company employees, they generally do not attend and must be given time to receive and review your Offer.
Q: What happens if a Seller submits a Counter Offer and I do not Accept it?
A: You are not obligated to Close if you do not Accept the Counter Offer, and you will receive a full refund of your Earnest Money Deposit.
Q: Are there any liens on the properties?
A: No. All properties will have Title Insurance, guaranteeing a free-and-clear title to the homes. Any existing liens on title will be satisfied by the property seller prior to closing.
Q: Can I finance a home I buy at auction?
A: Yes. You must be pre-qualified by one of the lenders or brokers found on our Financing page to be approved to attend and bid, but you may close your loan with any lender.
IMPORTANT: IF YOU CHOOSE TO FINANCE, REMEMBER THERE IS NO FINANCING CONTINGENCY. FAILURE TO CLOSE THE TRANSACTION WITHIN THE SPECIFIED ESCROW PERIOD MAY RESULT IN LIQUIDATED DAMAGES.
Q: Can I inspect the property prior to bidding at the auction?
A: We strongly recommend that you visit, and thoroughly inspect, any property for which you may place a bid. By registering and placing a bid at an auction, you are representing that you have inspected, reviewed and accept the condition of the property. All properties will have scheduled open house events in the weeks leading up to the auction. A private showing may be requested through the Listing Real Estate Agent, but there is no guaranty that private showings can be accommodated.
Q: Can I purchase more than one property at an auction?
A: Yes, however you must be pre-qualified for such multiple purchases. Please let your broker or lender know the aggregate amount of purchases you anticipate making, i.e., combined purchases of $1,000,000 (for the purpose of your pre-qualification letter).
Q: When will I receive title to any property I may purchase?
A: Unless otherwise announced, closings are expected to occur within 30 days of the auction event.
Q: Can I cancel a transaction if I change my mind?
A: No. Once you place the winning bid you have agreed to purchase the property. There is no rescission or "cooling off period". It is important that you perform all of your inspections and due diligence prior to placing your bids.
Q: How long will the auction last?
A: It depends on the number of properties being offered. Most auctions are two-day events, running from late morning into the evening. On some occasions, bidding may continue through the night.
Q: What is the Buyer's Premium?
A: The Buyer's Premium varies by auction event, please check the auction you are interested in to determine the Buyer's Premium for that event. The Buyer's Premium is a fee added to your winning bid by the auctioneering company for its services.
Example: If a Buyer's Premium is 3%, and a winning bid is $200,000, the total purchase price is $206,000 (the winning bid of $200,000 plus 3% of $200,000).
Q: Is the Buyer's Premium a Real Estate Commission?
A: No, the Buyer's Premium is the Auctioneer's Fee for professional auctioneering services. Auctioneers are not licensed or regulated by the Department of Real Estate. All real estate transactions will have a Real Estate Broker involved when being auction by an auctioneering firm. The auctioneering firm "cries the auction call" to the public. Real Estate Brokers represent the Sellers and Buyers.
Q: Are Buyers and Sellers represented at Auctions U.S.A. auction events?
A: Yes. All Buyers and Sellers are represented by Licensed Real Estate Brokers at Auction U.S.A.'s events. Auctions U.S.A. does not represent any Seller or Buyer as a Real Estate Broker. Auctions U.S.A. does not receive any real estate commissions. Auctions U.S.A. will only "Cry the Auction Call" on behalf of a Licensed Real Estate Broker. Auctions U.S.A. does not have a Real Estate Listing Contract with the Sellers. When working in conjunction with the Listing Real Estate Broker, the Broker maintains total control over the transaction on behalf of their Sellers and are bound by the Listing Contract. Auction U.S.A. is functioning only as an auctioneering firm and not a real estate broker. Auctions U.S.A. will only work with Licensed Real Estate Brokers.
Q: How is Auctions U.S.A. paid?
A: Auctions U.S.A. is paid by the Buyer's Premium (a/k/a) the Auctioneer's Fee. Auctions U.S.A. only works with Licensed Real Estate Brokers. The Licensed Real Estate Brokers must comply with all of the laws set by The Department of Real Estate of the State having legal jurisdiction. Auctions U.S.A. does not receive any of the real estate commission or real estate fees. The Real Estate Brokers maintain an Agency Relationship with the Seller, Buyer or Both. Auctions U.S.A. will not do business where the Sellers and Buyers are not represented by a Licensed Real Estate Broker.
Q: What is an Earnest Money Deposit?
A: An Earnest Money Deposit is the amount of deposit you are required to put down on auction day. The Earnest Money Deposit ranges from 3% to 10% of the purchase price (the winning bid plus the Buyer's Premium). Check the auction Terms & Conditions for that event. You may call the auctioneering company or the Listing Real Estate Agent for details on a specific property.
Q: Who holds the Earnest Money Deposit?
A: All Earnest Money Deposits are held by a licensed neutral third party. We work with Licensed Title and Escrow Companies, as well as Real Estate Closing Attorneys.
Q: What forms of payment are accepted for the Earnest Money Deposit?
A: The first $5,000 of the Earnest Money Deposit must be paid by a Cashier's Check or cash. The remaining balance can be paid by a personal check or by cash. We cannot accept more than $10,000.00 in cash. Cashier's Checks should be made payable to yourself and/ or Assignees. Example: John Doe and/or Assignees.
Q: What if the Earnest Money Deposit required is less than the $5,000 Cashier's Check?
A: If the required Earnest Money Deposit is less than the $5,000 Cashier's Check presented, the balance will be applied to the closing.
Q: What if I have a real estate agent or broker?
A: We welcome the participation of Buyer's Agents. Please have your Agent read our terms and register prior to the event you will both attend. All Buyer's Agents must register two days in advance of any event. No Agents may register on the day of any auction.
Q: If I am the winning bidder, can I assign or sell my contract to someone else?
A: Yes, under certain strict conditions. The Assignee can be added by an Amendment to the Original Purchase Agreement and Escrow Instructions, however, the Earnest Money Deposit will not be returned to the Original Buyer. The Original Buyer can only collect reimbursement of their Earnest Money Deposit outside of the Closing. The Assignee must agree to all of the original Terms & Conditions of the auction. Before executing the Amendment to the Original Purchase Agreement, all Disclosures must be "first" signed and dated by Assignee. Assignee must agree to pay Seller's Agent a $300.00 Disclosure Reprocessing Fee at the Closing. Assignment may only be done within the first seven days of the auction. There will be no additional extension of time added to the Purchase Agreement.
Q: Can I conduct inspections after the auction?
A: No. All inspections must be completed prior to the auction event. All sales are "As Is, Where Is, with all its Faults and No Expressed or Implied Warranties".
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