We Know: All About Property Auctions
What is a property Auction?
A property auction is the process of selling a property by offering it up for bid, taking bids, and then selling it to the highest bidder.
Who Auctions Property?
You will find properties auctioned by the owner, seized property auctions and government surplus actions.
How do I participate in Property Auctions?
To take part you will need to register for the auction. You will be required to bring ID and a cashier's check to receive your bidder number.
How are property auctions conducted?
Some properties are sold through traditional voice bids. Others are auctioned through sealed auctions in which bids are submitted in writing and the highest bidder is notified after the sale has closed. Most auctions are conducted at the property location.
What types of property is auctioned?
Single family homes, multi family homes, condominiums, commercial buildings, operating businesses, and vacant land is auctioned.
Do I need to attend the auction to bid?
If you cannot attend the auction, you may present a written bid by sending contact information or a completed bidder registration form to the auctioneer by the pre-determined deadline. You may also send a representative to bid on your behalf by turning over temporary notarized Power of Attorney. Certain real properties may be offered for auction on the internet or allow online bidding.
What is a reserve price?
It is a dollar amount placed on a property by the seller. A reserve price is not released to the public. If you hear the auctioneer say "Bidding closed, subject to the acceptance of the seller," it means the high bid did not reach the reserve price.
How does closing work?
Closing will should happen within 30 calendar days of sale, but you must make final payments as required, or title of the property remains with the seller and you will forfeit any deposits you made. After closing, a clear title will be conveyed to the buyer. Back taxes, liens and/or other encumbrances will be paid by the seller. Sometimes, title is conveyed with Special Warranty Deed which requires the seller to defend the title against defects or problems after the sale.