Auctions are fun and exciting whether you are buying, selling or a spectator. Below you will find a general outline of what you can expect, but please note all auctions will vary.
- Participate In Person Expectations
If you plan to participate in the auction in person, you’ll want to arrive about an hour before the auction is scheduled to begin. Most properties are open for final inspection up to two hours before auction time. To bid on site, bring a valid driver’s license and we will assist in the completion of registration. You will still need to show your valid driver’s license as proof of identification. The process only takes a few minutes. You will receive a bid card for use during the auction and due diligence packages where applicable.
- Once The Auction Starts
IAs the auction begins the auctioneer will address the audience on-site and participating online when applicable, read the terms and conditions for that particular auction, as well as any disclosures for the property to be sold. The auctioneer will introduce the auction team which consists of auctioneers, ringmen, contract personnel and clerks. The auctioneers will call the bid for the auction. If the auction is particularly long, the auctioneers may swap out. It’s important to know that the auctioneer controls the auction at all times. If you have a question or concern related to the auction, please address it to the auctioneer. Ringmen will act as facilitators between you and the auctioneer. Contract personnel will assist in completion of contracts at the conclusion of the auction. Clerks(when applicable) will assist in invoicing and checkout.
Once the auctioneer feels that everyone is ready for the auction to begin, it’s time to start bidding. The auctioneer will call for bids until he/she determines no one has any further bids to make. All registered participants have an opportunity to bid. When selling real estate, the auctioneer may hold the bidding on each tract and once all tracts have been bid on, may offer the tracts in combinations of tracts and then as a whole. Once all bidding is complete, the auctioneer will declare the property sold and contracting will begin. When selling personal property or equipment, the auctioneer will call for bids until bidding stops and declare property sold. There will be no combining of lots in this case.
- Once The Auction Starts
Once a real estate auction has concluded, the high bidder completes a real estate sales contract to be signed by the buyer, seller and broker. At this time we will collect your earnest money, which is generally either 10% of your final purchase price plus any survey or utility fees. Earnest money can be paid on site using cash or a personal or certified check. In an auction situation, real estate sales are not contingent upon the purchaser obtaining financing. Because of this, earnest money is not refundable in the event the purchaser is unable to close within 30 days. If the auction is for personal property or equipment, the buyer will need to visit the clerks to obtain an invoice and pay for his/her purchases before moving anything from the premises. Payments can be typically be made by cash, personal or company check(with a bank letter of guarantee), certified check, or credit card.
If you are the winning bidder in a real estate auction, you are encouraged to contact the closing attorney as quickly as possible to schedule your closing. Often times, the closing attorney will contact the buyers to schedule closings. The purchaser must close within 30 days or on a mutually agreed upon date. At any time during the process, American Auctioneers will be able to answer any questions you may have and assist in the closing process.