What are some of the Benefits of Buying Real Estate at Auction?
Real estate auctions can simplify the process of buying a home in comparison to the traditional means of buying real estate. Here are some of the advantages of buying real estate at auction.

Quick Turn Around Time and No Negotiations
The number one advantage of buying real estate at auction is the quick turn around time. When you buy real estate at auction you know that day whether or not your “offer” has been accepted. No waiting to find out if you will be a new home owner which means no lengthy negotiations.

Buyers Know they are Competing Fairly Against Other Buyers
In a traditional Real Estate scenario you only have privy to what you are willing to offer for the property and have no way of knowing if other buyers are competing against you. At auction, you know exactly what other buyers are willing to pay for the property and can decide if you wish to continue bidding or not.

Opportunity for a Bargain Buy
There’s always a possibility at auction that you will walk away with a bargain. Every auction is different, so you’ll never know until you go.

What is the starting bid at a real estate auction?
The starting bid at a real estate auction is decided by the public.

What about closing when you buy real estate at auction?
The majority of closings will take place within 30 days of the auction. Buying real estate at auction actually simplifies the closing process. In conventional sales the negotiation process can continue up to the time of closing, which may leave buyers with a stressful sense of uncertainty. At auction buyers may adjust their bid to cure for any defects and unforeseen uncertainties eliminating this type of stress by giving the buyer more control.

Do I need to have any money the day of the auction?
The winning bidder at the end of the auction will need to pay an earnest money deposit in the form of cash, check or certified funds. This amount varies and can be found under the terms and conditions of the auction on our website. The earnest money is deposited with the title company where it is held in escrow until the time of closing. At closing the earnest deposit is credited to the purchase price.

Do I need to have financing before the auction?
No. At auction a cash offer to purchase (contract) will be signed by the winning bidder. This offer is not contingent upon the buyer qualifying for and or obtaining financing. Therefore, if a cash purchase will not be possible, we recommend that potential buyers consult a loan officer and inform them of their intent to buy at auction so that they are pre-approved and an appropriate maximum bid amount has been determined in consultation with the lender.

How do I get more information about the property?
There are several ways to obtain more information regarding real estate up for auction. All of our real estate auctions can be viewed at our website at www.mcbrideauction.com. Here you will find detailed property information and photos along with the terms and conditions. However, there is no substitute for performing your own due diligence and inspection prior to the auction. Also, you can call and request a sale bill for any particular auction or all of our upcoming auctions. If you have a question, don’t hesitate to ask.

Will you work with 1031 exchange?
Yes.

What are the different types of real estate auctions?
There are three main types of real estate auctions. We do some absolute auctions however the majority of our auctions are reserve auctions.

Absolute
An absolute auction has NO reserve. The property is sold to the highest bidder regardless of price.

Minimum Bid Auction
A minimum bid auction has a starting minimum bid the auctioneer will only accept bids above the minimum bid price

Reserve
In a reserve real estate auction the seller has the right to accept or reject any offer that falls below their expectations.

What are some tips if I want to buy real estate at auction?

• Arrange a private showing to view the home
• Thoroughly inspect the property to qualify its condition
• Be sure to attend the open house set-up by the auctioneer
• Familiarize yourself with the terms and conditions of the sale
• Thoroughly read the due diligence packet
• Pre-approve yourself or arrange for financing prior to the auction, if needed

Do I need to register to buy at auction?
Yes, there will be a registration counter where you will be asked to present a valid form of identification in order to receive a bid card. There is no cost to register. At this point you should familiarize yourself with the terms and conditions of the sale.

How do I bid at auction?
Simply raise your hand or hold up your bid card. There will be ring men at the auction to assist the auctioneer in catching bids.

What is implicated by the bid at auction?
A bid at auction is a verbal legally binding contract. Once you are declared the winning bidder the item becomes your responsibility. All personal property purchases must be settled the day of the auction.

What does it mean if an auction is absolute?
All items will be sold to the highest bidder regardless of price.

Are there any fees added to the final bid price at auction?
In most cases no. However, at some auctions a Buyer’s Premium (an additional fee) will be added to the winning bid price. See terms and conditions for individual sales.

What exactly is a Buyer’s Premium?
The Buyer’s Premium is a premium added to the final bid price most often in the form of a percentage that typically varies from three to ten percent. By law, the entire buyer’s premium belongs to the seller. The use of the Buyer’s Premium is negotiated between the seller and the auctioneer. Its most commonly used to offset marketing expenses and is sometimes used to cover commission.

Do I pay sales tax for items bought at auction?
Normally no, however most states require that sales tax is collected on multi-seller auctions, such as a consignment auction, or inventory liquidations. If you have a valid resale tax exemption certificate you may defer the tax. You will need to have the certificate on your person at the time of registration if we do not already have it on file.

What if I want to bid but will not be able to attend the auction?
There are three options for absentee bidders.

• Pre-auction Online Bidding (If offered by the auctioneer)
• Phone in bid during the auction
  pre-auction authorization/signature required
• Download the “Absentee bid registration” from the menu on our website and fax back to us at (316) 788-8969