* Why Auctions work for many types of properties:
Selling via auction is a powerful, highly efficient alternative to traditional real estate brokerage. Where marketing approaches of traditional brokerage firms can last many months or even years, the auction process compresses every aspect of effective real estate marketing and dramatically shortens the sales cycle, creating a single moment of competitive bidding that determines the property's true market value. Auctions are unique events that focus market attention on the property at the expense of competing properties.
* Do I need experience to bid at one of your auctions?
No you do not. The first-timer and the veteran can all participate and we have a 15-minute bidder seminar just before each auction to make sure everyone understands and is comfortable with the process.
* Do I need to register in advance to bid?
No, but please bring a pre-approval letter or be prepared to speak to one of our auction-designated lenders on site or on the phone, as pre-approval is necesssary to register to bid.
* Who owns the properties that are being auctioned?
Individual property owners, banks, REITs or corporations own them. REOs are properties that have been foreclosed, and are now owned by the bank. Short Sale properties are still owned by the original owners but will require lender approval of your accepted offer, as the sales price in these deals is not enough to pay off the orginal note. Still others are in the middle of a foreclosure but will be sold by the owner before the foreclosure is completed. We also have trustee and probate home auctions.
* Are there any liens on the properties?
Sometimes and sometimes not. Regardless of what liens are present at the time of sale, the winner will get the home free and clear of any liens other than the Buyer's own loan. All sales include a Title Insurance Policy, which guarantees you a clear fee simple title with the vesting (obtaining ownership) of your choice. The Title Insurance Policy is paid for by the Buyer.
* How will I get financing if I am the winning bidder?
We will have home loan financiers on site or on the phone who are familiar with our auction process and specialists in this field. They will provide you with extremely competitive rates for a variety of loan programs available. You can choose the one that’s right for you, and down payments can be as low as 3.5% with FHA financing.
* What if I want to use my own lender?
Please note that Buyers are free to use their own lender...BUT, if you choose to utilize a third-pary lender (a lender other than those designated by the auctioneer), failure to secure funding will result in the loss of your required 3% deposit. We encourage utilizing the Auction-Designated Lenders -because of their experience as national lending companies who specialize in helping everyone from the first-time buyer to the sophisticated investor. If they fail to close your deal, you will be able to recover your deposit. To protect yourself from loss of your deposit, it is highly recommended that you run a parallel track with the auction-designated lenders as well as your own.
* Should I inspect the property prior to the Auction?
Yes, you absolutely should. We want all bidders to make an informed decision. All of our properties have a 72-hour (3-day) rescission period. In other words, during the first three days you can cancel for any reason, or no reason at all. Properties that do not already provide termite inspection or home inspection reports will have a 10-day buyer investigation period.
* Can I change my mind and cancel the contract after the fact?
Yes you can. There is always a 72-hour (3-day) cancellation period at a minimum and up to 10 days if there are inspections and reports that you wish to do on your own.
* What is the Buyer’s premium?
By convention, the Buyer's portion of the commission is referred to as the "Buyer's premium." What is unique about our auctions is that all real estate brokering fees are included. In other words, whatever the high bid is, that is the full purchase price. Your bid is your bid, and there are no additional real estate fees assessed on top of your bid. Please note: at other home auctions the Buyer's premium is normally added on top of the final bid. Although that is standard practice, and buyers accept it, they don't seem to like it. We understand that. That is why, at our auctions, the high bid IS the purchase price.
* What does it cost to participate?
Absolutely nothing. However, if you are the winner, you will be expected to put a 3% deposit into escrow within 24 hours of your offer being accepted. Short Sale auction winners will need to fax a copy of a 3% deposit check to us within 24 hours.
* Are there “plants” or “shill bidders” at your auctions?
NO. Although it is legal in the State of California to place a “Plant” bidder we believe it’s unethical, immoral and should be criminal. Many if not all other auction companies do utilize this but since almost no one knows that this behavior is legal we feel that this behavior is totally unacceptable and urge other auction companies to join us in abolishing this shocking practice.
*Do I need to bring cash or a cashiers check to the auction?
No. If the sale is a sale with equity you will need to put a 3% check into escrow within 24 hours of your offer being accepted. If the sale is a short sale you will need to fax or email us a copy of a 3% deposit check and we will only expect 3% to go into escrow within 24 hours of you receiving written notice that your offer has been accepted by the bank.
For more information about upcoming auctions. please go to our Auction Calendar page. To find out about currently available REO (Bank-owned) properties, please call us.
Contact us by phone at (510)390-2910
