Buyer Resource Guide
Why just buy real estate when you can WIN it!
The Auctioneers want you to fully grasp the auction buying process. Be ready to act fast when an auction chance arises. Once you understand the process, you will be more equipped to handle what follows.
Before the auction day, all potential buyers can access the same property information, and must meet the same pre-auction requirements. The selling event happens right in front of you, eliminating any back-and-forth communication or the delays and confusion that can accompany it.
Before the auction begins, the Auctioneer will make announcements and allow bidders to ask questions. Our Auctioneers are always clear and easy to understand when calling bids. This is not the moment to hold back! Ensure the Auctioneer notices your bid and/or hears you. If not, you might miss the very opportunity you came for!
Benefits of buying real estate at auction:
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 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
Establishes confidence in the price you’ll pay; your bid will be just one increment higher than the other most-interested 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
Provides for a quick closing and possession, typically within 30 days
Frequently Asked Questions
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 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 before 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 can 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.