How To Buy At Auction Home
Doug Holladay Auctions has supplied the following recommendations to better prepare yourself for a real estate auction. Provided for a better understanding only, we always recommend you seek your own legal advise when needed.
Do your "Homework". Find out as much as you can about the property. Download the Property Information Package (PIP). Our Property Information Packages 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. To review, click on the PIP link on the auction page you are interested in.
Inspect the property. Take full advantage of any inspections conducted by Doug Holladay Auctions. Remember, at auction, you are buying "as is, with all faults". Attendance at an "open house" inspection 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. You are responsible for any inspection you may require if it is not already provided by the Seller.
Pre-qualify yourself for financing. Increase your comfort level by knowing your mortgage financing qualifications. Even before you decide on a property to buy, you can pre qualify yourself with a lender. Know what you can afford to pay for the property before you bid. Now you can bid with confidence!
Attend an auction! Check the local newspapers, 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 the conduct an auction. The auction process happens quickly, so knowing what to expect is important, when you decide to buy. If you have questions, email or call us.
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 second highest bidder will become the back up buyer.
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.
You must register and obtain a bidding number. Bring identification.
Upon completion of registration you will receive a Bid Packet containing your
bid number, Terms of Sale, Purchase and Sale Agreement and a copy of the
Property Information Package.
You will be required to show proof of your deposit in order to register at the auction. You should have the certified check or bank check made out to you. When you are the successful high bidder at the auction, you will be required to affirm your bid with a signature on the P&S and endorsement of the deposit check to the auction company, Seller's attorney or escrow account. All deposits must be in earnest money form, i.e. cash, certified or bank check. Deposit requirements and amounts are clearly described in the "TERMS" section of all Doug Holladay Auctions advertising.
Prior to the start of bidding, there will be a question and answer 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 Doug Holladay Auction 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.
When bidding it is usual to get the auctioneers attention by raising your hand or making some other clear gesture to the auctioneer followed by the amount you wish to bid if different to the auctioneers announced price. Now you have started bidding the auctioneer will return to you every time the bid is against you to see if you wish to raise your offer. Until the "hammer falls" or you have reached your limit you should compete aggressively. There can be only one winning bidder for the property. Good luck!
PURCHASING
REAL ESTATE AT AUCTION
The following information is
provided by Doug Holladay Auctions to assist you in understanding your purchase
of a property at public auction. The material in this form is general in nature
and does not limit your obligations under the contract of sale that you will be
required to sign.
TERMS OF SALE: Your responsibilities as a purchaser have been advertised
prior to the day of sale and will be read by the auctioneer at the time of sale.
Additional terms may be announced on the day of sale or may be posted at the
sale site. The auctioneer will make important announcements regarding the
property and your obligations as a purchaser. Please feel free to ask any
questions regarding these terms.
CONDITION OF PROPERTY: The property will be sold "As-Is" unless otherwise
announced, the sellers make no representations or warranties about the condition
of the property. The sellers will not make any repairs unless otherwise stated.
DEPOSIT: Your deposit will be credited towards the purchase price. If you
do not comply with the "TERMS", either published or within the contract of sale,
you might lose all or part of your deposit. In addition, if you fail to settle
for the property you might be obligated to pay the expenses to resell the
property.
EXPENSES: You will be responsible for the expenses of owning the property
as of the date of sale, including pro-rated taxes, utility costs and insurance.
You will be required to pay interest on the amount of the purchase price, less
the amount of your deposit, from the date of the sale to the date you settle for
the property. We recommend that you obtain an insurance binder on the property
immediately as of the date of sale. Settlement expenses, including title fees
and recording costs are detailed in the TERMS of each auction. SETTLEMENT: The
settlement or closing period is specified within the terms of sale. You will be
expected to settle for the property within the specified time.
FINANCING: It is the purchaser's responsibility to obtain financing. If
you plan to use a mortgage to purchase the property, we recommend that you apply
for the loan immediately. If the bank must take a longer than specified time to
complete the loan, the sellers may extend settlement for a short period of time
if you can provide proof of loan commitment. Failure to comply with any of the
terms of sale may cause you to forfeit your deposit and be responsible for the
expenses to resell the property.