Q&A

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Questions & Answers about Auction Method Sales

Q: Why is the home being sold by auction method a high bid process ?

A: Because a bidding process allows all buyers to come to the home within a short period of time so it provides a fast efficient, and convenient way to sell a home in a manner that is fair to both the buyers and sellers. We need to sell the home FAST, this is the reason for the extremely low starting price.

Q: How does the Auction Method Bidding work?

A: The Round Robin Bidding Process is a buyer friendly approach that eliminates all the usual risks associated with a multiple bid home. Most on Friday, Saturday & Sunday, there will be an open house from 1pm to 3pm or from 2-4 PM to visually inspect the property and sign up to participate in the bidding as well as place an initial bid. The final bidding is held by phone on Friday after 2 PM. Starting at 2PM each bidder will receive a call informing him or her of the current bid and offering them the opportunity to increase their bid in order to proceed to the next round. Rounds will continue until only one highest bidder remains. Buyers will need to be available by phone Friday after 2 PM to receive multiple phone calls.

Q: How Do You Sign Up?

A: Come to the open house & visually inspect the home: interested? Fill in your name, phone number, and bid on the bid sheet.

Q: What Are The Rules?

A: You need to visit and inspect the property during the open house. Complete the bid sheet so that you can be contacted Friday evening. You will need to be available Friday at 2 PM to participate in the Round Robin. You will need to be available to sign the contract by noon on Monday, if you are the winning bidder. If you are the highest bidder and you cannot comply, and alternative arrangements are not made prior to Friday night, we may elect to call the next highest bidder and you may lose your chance to buy the home. The seller may decline any and all bids not acceptable to them.

Q: How much do I need for a deposit?

A: You will need a small deposit Friday evening only if you are the winning bidder (usually $1,000). Financing and pre-approval will be available for you the day of the auction method sales if needed.

Q: What happens to the deposit?
A: If you are the successful, the deposit will be written in your contract as “earnest money” or a “good faith deposit” and applied to the purchase price.

Q: Will there be any liens or encumbrances on the home?

A: No, you will receive a Deed and title insurance on the property. Any mortgages or debts against the property will be paid from the proceeds of the sale so that the home is completely free and clear.