Frequently Asked Questions
Q:
Why is the property being sold at auction and not listed for sale?
A: Auctions are a viable
way for a seller to market a property under the seller’s terms. The seller
determines the auction and settlement dates and the payment terms, not the
buyer. Market value is determined using the competitive bidding process, rather
than the seller setting the price.
Q:
What is the minimum bid?
A:
Most of our real estate auctions are offered with a reserve price that is
determined the day of the auction by the seller, and not before. There is no
established minimum bid prior to the auctions. Some auctions are offered
“absolute”, which simply means the property will be sold the day of the auction
to the highest bidder regardless of the price.
Q:
Will I get a clean title to the property?
A:
The conditions of sale at all of our auctions provide that the seller
must be able to provide a clear, insurable title at settlement. Real estate
taxes are prorated at settlement.
Q:
What are the auction payment terms?
A:
Most of our real estate auctions require a 10% down payment the day of
the auction. We will accept a
Q:
Is there a buyer’s premium?
A:
We do not charge a buyer’s premium at any of our real estate auctions,
unless noted on the auction brochure.
Q:
Is there a buyer’s premium?
A:
We do not charge a buyer’s premium at any of our real estate auctions,
unless noted on the auction brochure.
Q:
What about contingencies and inspections?
A:
All of our real estate auctions are sold in “as is” condition. The
conditions of sale are not contingent upon mortgage financing, appraisal,
property inspections or certifications. Sellers are required to provide a Seller
Disclosure Form with information they know about the property. This is available
the day of the auction for review along with the conditions of sale agreement.
Q:
What if I need a mortgage to buy?
A:
Most local lenders will pre-qualify you for a specific mortgage amount
prior to the auction. If you need assistance with financing, you may to speak to
us for guidance.
Q: What happens if I default and don’t go to the settlement?
A: The conditions of sale usually provide that you will lose your 10% deposit. In addition, the seller has the right to resell the property at public auction or private sale and if the purchase price is less that what you agreed to pay, you are responsible to pay the difference. It is very important for you to be prepared to buy prior to bidding at any of our real estate auctions.
Q:
Who conducts the settlement?
A:
The buyer has the choice of title company or attorney they would like to
use to handle the final settlement.
Q:
What is a Broker Participation Fee?
A:
This is a fee that the seller pays to a real estate agent that introduces
and pre-registers a successful buyer of real estate at auction. This fee is not
available for any prospective buyer that was not introduced to the property by
the realtor. Other conditions apply. There is no cost to the buyer regarding
this fee.
Q:
How do I bid at the auction?
A: To bid at our auctions, you have to raise your hand or indicate to us that you want to advance the price. The bid increments are determined by the auctioneer. The auction will continue until there is no further advance in price.
717-442-9221
610-384-8433
barrdavis@barrdavis.com
www.barrdavis.com