Buyer Resource Guide
Why just buy real estate, when you can WIN it!
Educated bidders are happy bidders. The Auctioneers and staff of Legacy Auction & Realty want you to completely understand the process of buying at auction. Be prepared to move quickly on an auction opportunity. Once you know the process, you are better prepared to deal with what comes next.
Prior to auction day, every potential buyer has access to the same publicly- and usually privately-available property information and is required to meet the same pre-auction terms. The selling event unfolds right in front of you, so there are no back-and-forth communications or the delay or confusion that may come with them.
Before the start of the auction, the Auctioneer will make announcements, and give bidders the opportunity to ask questions. Our Auctioneers are always crystal-clear and understandable in their bid calling. This is not the time to be shy! Make sure the Auctioneer sees your bid and/or hears you. Otherwise, you might end up missing the very opportunity to came for!
- Allows you to choose the price you are willing to offer
- Gives you an opportunity to preview the property at an open house and arrange any inpections you desire
- Provides you with a Property Information Package (PIP) that is available electronically and onsite, and your own due diligence is always encouraged
- Guarantees each bidder is competing fairly, playing by the same rules, and all the action is transparent at a Legacy Auction
- Assures the property will be sold at true market value which is what the market is willing to bear that day
- Ensures clear title, or your earnest money will be refunded
- Grants knowledge that seller is committed to selling the property
- Reveals the true market value because only the ready, willing, and able bidders are your competition, so you’ll never “pay too much” for a property
- Establishes confidence in the price you’ll pay; your bid will be just one increment higher than the other most-interested bidder (the “Back-bidder”)
- Validates your buying decision and eliminates any uncertainty regarding value
- Relieves you of pressures of negotiation with the seller because negotiation periods are eliminated; you choose to accept the realty with all its faults and benefits
- Provides for a quick closing and possession, typically within 30-45 days
- Offers ultra-quick closings for Cash buyers…as little as 14 days
- Is fun and exciting!
Frequently Asked Questions (FAQ)
I’ve never purchased a property at auction. What should I know?
As with any other real estate purchase, it’s important to do your homework. Our properties are sold “as is-where is” without contingencies of any kind (other than a clear title). Review the information available in advance, from the PIP and other publicly-available websites or at the courthouse. The terms of each sale may vary so read the advertisements carefully.
Visit the property at an Open House and ask as many questions as you need to to become a confident bidder. Arrange necessary financing ahead of time. The closing date and contract terms are all known in advance for peace of mind and planning.
What if I need to get financing (mortgage)?
Knowing the amount of a mortgage you are approved for determines how much you can pay for any property, no matter how you buy it. Your financing must be arranged prior to bidding. Your budget also establishes your comfort zone for easy bidding. Unless you are a cash buyer, the mortgage piece is crucial to your successful closing of the deal. Make sure you have the ability to pay the earnest money on auction day, and are ready to make up any shortfall in lender financing. Come prepared to adhere to the terms of that auction sale.
May I preview the house/property and have any inspections done before deciding whether to bid?
Absolutely! All property is offered and sold “as-is, where-is,” so you should ensure all your questions are answered prior to that date. The property will be sold with no contingencies. There will be an Open House scheduled, and you are encouraged to attend. You may make arrangements for any inspections you wish, as long as they are non-invasive and completed prior to auction day. Any inspections are at buyer risk and expense.
How do I register to bid?
You may register at the auction site on the day of the sale prior to the auction. If the property is available via an online auction, you may register to bid on the bidding platform as soon as bidding opens. You will be asked to provide identification and certified funds per the terms and conditions of the auction.
What is the Buyer's Premium?
The Buyer’s Premium is a fee, added to the winning bid to determine the final purchase price. At a Legacy Auction, this is equal to the amount due on auction day, and serves as your earnest money deposit.
How much will I put down as a deposit?
A 10% deposit, equaling 10% of your winning bid, is required on the day of the sale. The deposit is non-refundable. The balance, equal to the winning bid, is generally due in 45 days or less, according to the terms of the sale. In some auctions, a check for a set amount will be required to register, which will be returned if you are not the winner.
What if I’m already working with a Realtor as my Buyer's Agent, and want to bid on a property being sold at auction?
We welcome your Realtor’s/Broker’s participation in many of our auctions. He/she must complete a Broker Participation Agreement form specifying you as their client and have it received by us at least 48 hours prior to the auction event. You, as the buyer, must register as a bidder according to the terms of the sale. If you are the winning bidder, your Brokerage will be compensated by us at closing. There is no additional fee to you, unless so specified in your Buyer’s Agency Agreement with your Realtor.
How do I know if the sellers are just trying to “test the waters”?
Property sellers use the auction method for many reasons. Owners choosing the auction method are motivated, serious sellers who know the time value of money. These sellers are fully aware of the auction process, and ready to make a deal happen. They have retained Legacy Auction & Realty to find them a buyer on their preferred date.
What types of property will I find for sale at auction?
Gone are the days where auctions were used only for distressed or foreclosed properties (see For Sellers). Owners of all property types are taking control of their selling situation by employing the auction method. There is always a motivated seller ready to sell and buyers looking to buy!
A great variety of property types are offered, including:
- Commercial – Office buildings, multi-family, hotels, industrial and warehouse space
- Non-distressed Residential – Owner-occupied, mid-market and luxury homes
- Recreational land, building lots, and farmland
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