FAQ

Auction Dictionary

  1. Buyer Premium – Let’s say the price you bid at the Auction is $500,000. Let’s say that there is a 10% Buyer’s premium. That means that you are actually bidding $550,000.
  2. Absolute Auction – The lot will be sold to the highest bidder regardless of what the price might be.
  3. Reserve Auction – There is a starting price or that the property cannot sell for less than a given starting bid.
  4. “Sold As Is, Where Is” – Regardless of what condition the property is in there are no guarantees, implied or provided. This means that the onus is on the Buyer to inspect the property thoroughly before starting the bidding process. The property will be sold “as is”.

Questions

What should I do before I come to the Auction?

  1. Inspect the property and evaluate it.
  2. Prepare your financing.
  3. Know that you will have to go to closing within 30 days.

What do I have to do once I get to the Auction?

  1. You should arrive at least 1 hour prior to the start of the Auction.
  2. You will have time to go over all of the materials to prepare for the bidding process.
  3. You will have to provide a certified check, cashier’s check, or cash, at a minimum of $5000.00, in order to register for the bidding process. Deposit amounts vary and will be clearly stated in all advertising for each different auction prior to the auction.
  4. You will need to provide proper identification in order to register for the bidding process. An example of proper identification is a valid driver’s license.

What are the Terms and Conditions all about?

This is what you need to understand and agree to before bidding at the Auction. There are no exceptions – everyone must comply with the terms and conditions of the Auction. The terms and conditions can be found in the property information package.

What should I do to bid at the Auction?

All you must do is raise your bid card in the air or call out your bid to the Auctioneer or to the ring person standing nearest to you. If you want to stop the bidding process once you have been outbid, just shake your head.

What do I do when the auctioneer accepts my bid as the winning bid?

One of our staff members will immediately approach you to sign a winning bidder confirmation sheet. On this confirmation you will see the amount you bid together with the buyer’s premium and a total which constitutes the purchase price. Then someone will accompany you to the settlement area. During this settlement procedure your cashier’s check will be endorsed over to RERC and then you will be required to sign the sales contract and other related documents.

Example: Bid amount = $500,000 + $50,000 Buyer premium (10% of the winning bid amount) = Total purchase price of $550,000. Total deposit payable on the day of the auction (for this example is $25,000). The balance due at closing will be $525,000 ($550,000 – $25,000 deposit) plus standard closing costs that you would pay regarding the sale of any real estate in the State where the property is located.

When do I get the property delivered to me?

You have to go to closing within 30 days. Within that 30 day period, closing costs have to be taken care of.

Please check with RERC to see what costs are associated with completing this sale.