Once you find a property that you wish to bid on, you should do the following:
- View the property either at one of the scheduled viewing times or by private appointment with the Auctioneer or your REALTOR.
- Make sure you know all of the pertinent information such as auction date and time, property description and basic terms.
- Perform any desired inspections prior to the Auction
- Arrange financing if needed
- Determine your bidding level
- Be sure to remember your deposit money as indicated in the auction terms
- Attend the Auction
Keep in mind that all properties are sold “As Is, Where Is,” meaning financing cannot be contingent on inspections or appraisals. We encourage you to perform your research. Most properties will have open public inspection periods and we recommend you perform any inspections or have the property appraised before auction day.
The amount you wish to spend is entirely up to you. This is what makes the Auction method fair to all involved. An Auction reveals the true value of a property, a value set by those who are interested in buying it and who compete against one another fairly and openly for the right to own it.
What type of auctions does New York Real Estate Auctions offer?
We utilize the most advanced auction platforms to offer you live, real-time bidding opportunities that are convenient and best suit your needs. We conduct live auctions at the property and also offer on-line bidding in certain cases. Be sure to check the individual auction listing for auction location and bidding methods.
How do I register to bid?
To bid on site, bring a valid driver’s license and complete the brief registration form. The process only takes a few minutes. Some auctions may require a bidder deposit to be made in advance of the auction. This information will be clearly spelled out when you go to register. Don’t forget the cashier’s check or other form of down payment required to bid.
Can I have an inspection done on a property before the auction?
Yes. Most properties will have open public inspection periods and we recommend you perform any inspections or have the property appraised before auction day. The dates and times for public inspection are listed on each property’s detail page. Additionally, properties are available for public viewing through licensed real estate brokers/agents.
What is a Buyer’s Premium?
The Buyer’s Premium is paid by the buyer and used to compensate the real estate broker representing the buyer and/or the broker or auctioneer representing the seller. In most cases, we add 10 percent to the high bid to determine the final contract price.
Do I get insurable title?
In most cases. Generally, the buyer will be responsible for all closing costs and may decide if they wish to purchase title insurance as determined by the title company indicated on the contract.
Can I use my own title company?
It depends. In some cases, such as our REO property auctions, the lender may specify use of a certain title company. The terms of sale which are stipulated in the contract will govern. Specifically, that the insurable title as prepared and offered by the indicated title company shall be the standard agreed to and accepted by the parties for conveyance and that the buyer shall pay all costs already incurred and required by that title/closing company. Therefore, you may use your own title company to close the transaction, but you may still be responsible for some costs incurred by the original title company.
Is there a reserve price?
All properties are auctioned “subject to seller confirmation” (a reserve auction) unless otherwise disclosed as “absolute” or “without reserve”. Properties sold “subject to seller confirmation” or “reserve” may not have a published reserve value, and the high bid is simply subject to seller approval. Properties auctioned “absolute” or “without reserve” have no reserve value and the property will sell to the high bidder on auction day.
Can I use bank financing?
Yes. However, the properties are being sold without contingencies, “Cash, As–Is, Where-is” so you should be pre-qualified by a lender as to the amount you can afford to spend for a property being sold for “Cash, “As-Is, Where-is.”
Do I need to use a Real Estate Agent?
An auction provides a clean, time definite, exchange between the parties and traditionally allows the buyer to minimize the number of intermediaries separating him/her from the seller. Although as the auctioneer we represent the seller, we have the responsibility to treat all parties fairly and in accordance with real estate law. If a buyer feels more comfortable having representation at an auction, s/he is welcome to have an agent register the buyer as a client, attend the auction, and assume the role of a buyer’s agent.
Will I know on-site if my bid was accepted?
If you are the high bidder on a property selling “absolute” or “without reserve” that means there is no reserve value and the high bid is the sale price. If a property is not being marketed as “absolute” or “sells without reserve” the high bid is subject to seller confirmation or approval. For properties subject to seller approval, we generally try to have an answer back that same day.
What does “Buyer’s Choice” mean?
In this method of auction, bidders compete for “the right to choose first” from a pool of similar properties. The high bidder may choose one, some or all of the “like properties” offered. If the high bidder chooses multiple properties, then the high bid is multiplied by the number of properties the high bidder chose. If the high bidder takes less than all of the properties, then the bidding begins again and the subsequent high bidder now wins the right to choose first.
Is the down payment deposited?
All down payment funds are deposited in less than 24 hours of the auction. Note: most of our auctions will require certified funds on auction day in order to register to bid. Please verify with the lead auctioneer and review the specific terms of the auction you are interested in.