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EVERYTHING BUYER AND SELLER NEED TO KNOW
Real estate auctions are one of the most effective ways to buy and sell property. Whether you’re considering selling your home, land, or investment property, or you’re thinking about bidding, it’s important to understand how the process works. Here are some of the most common questions I hear about real estate auctions.
What is a Real Estate Auction?
A real estate auction is a public sale where qualified buyers compete by placing bids. The highest bidder secures the property, subject to the terms set in advance. It’s an efficient, transparent process that often generates strong buyer interest and competitive offers.
Do I Need to Register?
Yes. Buyers must register prior to the auction. Registration ensures you understand the terms of sale and are prepared to participate. Registration can happen onsite the day of the auction or online prior to the auction.
How Do I Bid?
Depending on the auction, you can bid in person, online, or both. You’ll be assigned a bidder number to use when placing your bids. Online auctions allow you to participate from anywhere with internet access.
What Happens if I Win?
If you’re the high bidder, you’ll sign a purchase agreement and provide the required earnest money deposit. From there, the process moves toward closing, similar to a traditional real estate transaction. Standard Terms are typically 20% down, close in 30 days. Each auction will have Terms & Conditions disclosed prior to the auction so you will understand all expectations.
Do I Have to Pay Cash?
Not always. It’s not uncommon for buyers to use a bank loan to purchase at auction. However, auction contracts are non-contingent, meaning the sale does not depend on financing, inspections, or appraisals. This is why it’s critical to have your financing secured before auction day.
Why Do Sellers Choose Auction?
Sellers use auctions to:
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Set a specific timeline for selling their property.
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Create urgency and competition among buyers.
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Achieve fair market value in an open, transparent way.
Are There Fees?
Buyers typically pay a buyer’s premium (a percentage added to the winning bid). Sellers may have a no-sale fee if a property doesn’t meet reserve, but all terms are clearly outlined before auction day.
Considering Buying or Selling at Auction?
Real estate auctions can be a powerful tool to get results. If you’re curious about how this process could work for you, I’d be glad to walk you through every step.
📞 Contact me today at 931-261-8150 or visit www.jenniferhannah.com to learn more about upcoming auctions and how I can help you get MORE for your property.
