Before an auction begins, the auctioneer will always go over the terms of the sale. Normally, all of the announcements that are made on the day of the sale take precedent over all previously printed material. Always pay close attention to the announcements made on the day of the sale because certain conditions or terms of the sale may have changed. Buyers must register prior to the auction either via this website or at the auction buyer registration table on the day of sale.
You must have a valid driver’s license with a photo to prove your identity on the sale date. If bidding on real estate, you will need sufficient cash or a good check the day of the sale for an earnest money deposit. The earnest money check will be deposited on the next business day. Earnest money deposits on real estate range from 10% to 20% down depending upon the size of the sale. Always check the terms of the sale as advertised to insure the amount of earnest money required.
All monies will be retained in Liberty Realty & Auctions Escrow account. The deposit is part of the total purchase price and will be deducted from the balanced owed at closing. A closing date will be scheduled for on or before 30 days from the date the auction was held. All parties buying real estate will be required to sign a purchase contract immediately upon being the highest bidder. All sales are final and are not subject to any contingencies including financing. If the buyer fails to obtain the balance of funds before the purchase contract expiration date, then the buyer must forfeit all earnest money.
Never participate in the auction process if you have no intention in buying the property. If the last bid is yours, you are the buyer. We will be on site to handle any questions regarding closing costs, title work, and title insurance. The closing date and location will be spelled out in the purchase contract and you may close on or before this date. If attending a personal property sale, all purchases must be paid for in full on the day of the sale before leaving the sale premises. Remember, the most important rule to have as a bidder is “Don’t bid unless you intend to buy”.
A buyer’s premium is an additional amount of money (usually a percentage) that the successful bidder is required to pay. Fully disclosed prior to the auction, the buyer premium is added to the bid price to create the contract price. Therefore, we strongly suggest that you adjust your bidding accordingly to take this into consideration.
Yes, many banks and other lenders are happy to provide financing with many different programs from ‘conventional’ and ‘non-conforming’ to ‘Hard Money’. It is advisable before bidding on property that you contact an approved lender who specialize in investment properties, to get your application for pre-approval started if you need financing.
A closing date will be set on or before 30 days after the auction. The buyer may close any time before this date. A warranty deed is issued to the purchaser at closing. However, the terms of possession will differ if the property is occupied. For example, 30 days after closing may be required for a property that is occupied. If you are purchasing personal property, the property becomes yours immediately upon the Auctioneer saying sold. It is therefore the buyer’s responsibility to make sure their item is protected against theft and paid for in full before leaving the sale.
Many auction properties are listed as “absolute” or “auction without reserve”. This means that the property will be sold on the day of the auction, regardless of price. This is the most effective auction for both the seller and the buyer, and generates the maximum response from the market . If a property is listed with a “reserve price” it simply means that if the highest bid received is below a seller’s ‘minimum amount accepted’ then the seller will decide whether or not to accept the bid. Many sellers, including financial institutions and government agencies, have begun using the “absolute auction” method, since a sale is guaranteed.