Tranzon makes buying Real Estate at Auction simple!

If you plan on buying real estate at auction, you may have questions about the process and responsibilities. We hope this list of answers is helpful to you. If you need more information, please Contact Us.

Q: How should I prepare to bid at a real estate auction?
A: The primary difference between buying real estate at auction versus buying real estate conventionally is that at auction, you do your property evaluations and inspections, including any lead-based paint inspections, and prepare your financing prior to coming to the auction. If you have done your homework in advance, evaluated what the property is worth to you, and have arranged for the financing, buying real estate at auction will be a fun and streamlined process. You will be able to bid with confidence, knowing what you are getting for your money, from where you are getting your financing, and when you will close your transaction (generally 30 to 45 days after the auction). You can feel confident that you are getting the property at a fair price because you need only bid one increment over the next highest bidder to win. All bidders are playing by the same set of rules, which avoids losing real estate over contingencies or seller concessions – if a contingency or concession is offered to one, it is offered to all.

Q: What do I need to do on auction day?
A: It is advisable that you arrive at the auction site at least 30 minutes prior to the time of the auction. This will allow you plenty of time to look at the property, ask questions, review materials, and register with your Tranzon auctioneer. A real estate auction can be over in a matter of minutes so don't be late! Although there is no obligation to bid at an auction, all prospective buyers must register in order to bid.

To register, you will need a valid driver's license or other acceptable form of identification, and you need to provide evidence that you have the earnest money deposit required to bid. The earnest money deposit must be in the form of cash, certified funds, a bank letter of guarantee to accompany a personal check or business check, or acceptable check. Credit cards are not generally accepted. See the Terms and Conditions of each sale to obtain the specifics as to the deposit requirements for the property of your interest.

Q: What are the Terms and Conditions of the sale?
A: The Terms and Conditions govern the sale. They include information such as the required deposit amount, when the sale of the property will close, and other key facts. You should familiarize yourself with these prior to the auction. Summaries of the Terms and Conditions are available within the property listing at www.tranzon.com. Complete Terms and Conditions are available either via download, fax, or mail as part of the Property Information Package. You should note that at an auction sale, any announcements made by the auctioneer on the day of sale take precedence over previously published or verbally conveyed terms and conditions. So, pay attention at the auction!

Q: How do I bid at an auction?
A: In order to bid at an auction, you need to attract the auctioneer's attention. You can hold up your bidder card, you can wave, or you can shout out "Yes". Many times there will be a bid assistant circulating among the bidders who can also convey your bid to the auctioneer on your behalf. Conversely, if you want to take yourself out of the bidding, just shake your head “No” when the auctioneer looks at you or answer "No". It’s easy! If you are ever unsure whether your bid is the high bid at any given time, feel free to ask a bid assistant or the auctioneer to confirm this. The auctioneer wants to provide you every opportunity to place your bid and will not allow you to bid against yourself.