We have thousands of available auction properties on our platform that may be exactly what you’re looking for in a home, and while purchasing through auction can be an attractive alternative to traditional methods of buying, it can also come with uncertainty for those who are new to the platform. Even before you bid, we are here to help you position yourself to win, bid and close with confidence with some useful tools and resources. Here’s how to do that in a marketplace primed for your success.
Pre-Auction: Bid with Confidence
Identifying your strategy early on will help guide you along a path that can be rocky if you are ill-prepared. Do you know what kind of property meets your real estate goals? A single family residence? A townhouse or maybe a condo? What is the purpose of the property, investment or otherwise? Are you looking rent and hold the property, or are you going to fix and flip? These are questions you should ask yourself early in the auction process so when it comes time to begin your search, you have a defined strategy.
Due Diligence
At Auction.com, we make it easy to find vital information to perform due diligence on the home and neighborhood. This will help ensure you have carefully considered the pros and cons associated with that property. Additionally, it is the best way for you to assess the value of the property since, in many instances, you may not be able to view the interior of the property.
To help you research the status of a property and surrounding area, we provide free Property Inspection Reports and Title Reports, available on select properties for download directly from the property details page.
Property inspection reports are provided to Auction.com by the seller’s preservation company for the properties on our platform. They are found primarily on newly foreclosed properties and contain property information such as property damage, cost estimate of damage (if applicable), occupancy status, construction type, any negative influences about the property and pictures of both the interior and exterior. In addition to these helpful features, this report also reveals important vacant information such as when the property was vacated, whether or not the utilities are still active and if any maintenance has been performed.
A basic Title Report will contain general property information such as a description of the property, zoning, tax rate, titleholders, liens, mortgages, overdue taxes and any concerns about the property boundaries.
Together, these reports empower burgeoning part-time or full-time buyers and investors to navigate Auction.com with confidence.
Auction: Win with Confidence
You’ve conducted your due diligence and you are ready to start bidding and winning. Not only does Auction.com have thousands of foreclosure sale and bank-owned properties available to you, we also help you track them to ensure that you can confidently pursue the properties you want.
Live Foreclosure Auctions
At Live Auctions, we often have helpful staff present to answer any questions you may have. Even before the live auction, you can find the properties on Auction.com and on our property details page, you can use the feature “Save Asset,” which allows you to save the property to receive real-time status updates by email. If a property has been cancelled for auction, you receive an update. If the property is being auctioned at a different time or date than listed on the property details page, you receive an alert, ensuring you never miss a live auction again!
Bank-owned Online Auctions
When it comes time to register to bid for an online bank-owned auction, you must first provide Auction.com with a few pieces of information such as your contact details and a bid deposit. The bid deposit does not go toward the purchase of the property and it shows up on your credit card as a hold. Whether you win or lose the bid, the deposit is returned to you once the auction ends. It can take anywhere from 2-3 days to have the hold removed from your credit card depending on your banking institution.
Buying bank-owned properties online can be convenient and transparent but it can sometimes be intimidating. We are here to help you confidently bid and win. There are a few options to help you stay competitive in an online environment:
Proxy Bids
A proxy bid is a service that allows you to enter an agreement and allow a third party the ability and authority to bid on your behalf at a public auction. It allows you to submit your highest and best offer prior to the auction.
If proxy bid is available on the property you are viewing, a selectable proxy bid box will be present in the bidding box to the right of the property images. Once you select the box, you will be taken to another page where you will be prompted to submit your highest and best offer.
You can submit a proxy bid any time before the auction begins. If you are the highest bidder after the auction ends, we will notify you and your bid then moves onto the seller who will then review it. If the seller accepts your offer, you move to closing. Note: You will not receive an email notification if you lose the bid but you will receive notification if you are outbid.
Once the auction begins, you will want to follow it very closely. Bids that are placed within the final minutes will trigger an overtime bidding period to allow interested parties to keep bidding. This is typical of auctions as the extended period gives everyone a chance to place last minute bids.
When the auction ends, we will send you an email informing you if you have won. Expect continued email communication from our Customer Engagement team who will help you move towards contracting. We will help you and the seller through every step of this process.
Post-Auction
Online, we have an extremely helpful contracting and closing departments made up of supportive representatives who will help make the Bank-owned property yours! Once the auction is over, and you are the winning bidder, you will receive an email with the purchase contract from our online contracting team. You have 24 hours to return the purchase contract with your earnest money deposit and proof of funds. You then receive an email from DocuSign®, a digital transaction management system that allows you to sign documents electronically, asking you to create an account so you can sign the necessary documents.
The next email you will receive will come from your Contracting Specialist. This person will provide you a list of the required documents that need to be submitted in DocuSign®. He or she will also guide you through the remainder of the contracting journey. Once your documents are received, you will receive another email to confirm delivery and then a final email stating that your docs have been moved to a closing specialist. At this step you are moved from contracting to closing.
Providing our customers with support along the buying journey and offering an experience that is second to none is our top priority. We understand the home buying process can be a stressful experience and we want to help guide you every step of the way to ensure that you bid, win and close with confidence.
Want to learn more about purchasing through Auction.com? Visit our Auction Learning Center to learn how to navigate the auction process with confidence.
