FAQ’s for Sellers
Why don’t you list any auctions on this site? OhioAuctioneer.com is a central point of contact where sellers can find the best auctioneer for their individual needs. Each Auctioneer has there own website where they list their auctions. There are other sites that list auctions in Ohio such as AuctionZip.com.
How do you charge? For real estate auctions we usually charge the buyers a 10% buyers premium. For personal property we usually charge the buyers a 10% buyers premium and the seller a percentage also. Each auction is different and each auctioneer has different commission structures depending on what is being auctioned.
Do I have to pay for marketing? Typically yes. Sometimes it is due upfront. Sometimes it is taken out of proceeds. Your auctioneer can show you exactly where the marketing dollars will be spent.
What kind of marketing do you do leading up to the Auction? Every property is different and every budget is different however here are a few marketing avenues: signage, our website, other auction websites, Craigslist, Ebay, google ad words, Multiple listing services, email blasts, direct phone marketing, newspapers, business journals, direct mail and many others.
How are buyers qualified? For real estate auctions we typically ask the buyers to bring a reasonable amount of money in the form of a cashier’s check in order to bid. That is typically better than a “pre approval letter” from a loan officer. For personal property we just ask for their driver’s license as security.
What is the timeframe to have an auction? As a rule of thumb, whether it is real estate or personal property, the general time frame is 30 days till auction. Some properties may require a bit more time depending on the situation.
Who pays for the closing costs? The buyer pays for all closing costs at one of our auctions. The seller is only responsible for mortgage payoff, commissions and tax proration.
How do you prorate taxes at closing? We do what is called a “short tax proration” which saves the seller a full 6 months in taxes.
FAQ’s for Buyers
What do I need to bring to the Auction? Every auction is different but usually a cashier’s check and your ID. See the terms for each particular auction.
Do I need to register to bid prior to the Auction? No, not unless you are registering through your Realtor. Otherwise show up no later than 30 minutes prior to auction.
Do you pay Realtors? Yes. There is a section of the website that spells that out.
May I attend just to watch? Yes. We welcome anyone to come and watch. It will be good experience for you if you have never been to a real estate auction.
How long will the Auction last? Most real estate auctions last less than 30 minutes. Some personal property auctions can even last multiple days.
What is the buyer’s premium? It is an additional percentage added onto the hammer price to determine the final price paid by the buyer.
Can I change my mind after the Auction? No. When the auctioneer says “sold” that creates a contract. Auctions are serious business for both the buyer and the seller.
Can I do inspections? Usually. All inspections need to be completed prior to the auction at the buyer’s expense.
Do I get clear title? Yes. A title search will be done prior to closing to prove that there are no liens or encumbrances on the title. Title insurance is usually available for purchase.
Can I choose my own title company? Sometimes. Usually the auctioneer has already ordered title work through a company that we are used to doing business with.
Can I get financing? Yes as long as it is done within the timeframe given to close and the mortgage company does not require inspections or contingencies.
Glossary
ABSOLUTE AUCTION – An auction without reserve. An auction in which property is sold to the highest bidder regardless of price. This typically generates a much greater interest among potential buyers resulting in greater attendance at the auction, and a higher final sale price for the property in question.
ABSENTEE BID – A procedure which allows a bidder to participate in the bidding process without being physically present. A bidder who cannot attend submits an offer prior to the auction. All arrangements for payment have been made in advance.
AS-IS – Selling the property without warranties as to the condition and/or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is” and “In its Present Condition”.
AUCTION WITH RESERVE (Also called Auction Subject to Confirmation) – An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.
AUCTION WITHOUT RESERVE – An Absolute Auction. (See Absolute Auction) An auction in which property is sold to the highest qualified bidder; where no minimum price will limit the bid; where the seller may not withdraw the property from the auction after the first bid has been received; and where the seller may not nullify the sale by bidding himself or through an agent. “Auction Without Reserve” is equivalent to the term “Absolute Auction”.
BIDDER’S CHOICE – A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. The winning bidder then has the choice to take one property or as many as were offered in that round. After the high bidder’s selection, the property is deleted from the group, and the second round of bidding commences, and so on, until all properties are sold.
BUYER’S PREMIUM – A percentage added on to your bid amount. In Real Estate it is an amount added to the high bid to determine the total contract price to be paid by the buyer. The use of the buyer’s premium benefits both buyers and sellers. Sellers benefit because it helps to defray many of the expenses associated with conducting an auction. The buyer benefits because without the use of this tool, there may not have been an auction. The competitive bidding process might not exist if the buyer’s premium were not used to offset some of the expenses. Check the terms and conditions of the auction to determine if there is a buyer’s premium.
BROKER PARTICIPATION (Also known as broker cooperation) – An arrangement for third-party brokers to register a prospective buyer with the auction company. The broker is paid a commission by the owner of the property or the auction firm only if his prospect is the high bidder and successfully closes on the property.
DUE DILIGENCE – The process of gathering information about the condition and legal status of property to be sold.
MULTI-PARCEL AUCTION – A process used in real estate auctions where a bidder has the opportunity to combine several parcels of land previously selected by other bidders, thereby creating one larger parcel out of several smaller parcels. This process is often used in conjunction with bidder’s choice.
MULTIPLE PROPERTY AUCTION – A group of properties offered through a common promotional campaign. The properties to be auctioned may be owned by one seller or multiple sellers.
PREVIEW – Pre-determined times made available for you to inspect the property offered for sale. You will want to evaluate the overall condition of the property and determine if there are any defects. While these may be acceptable to you, it may affect the amount you want to bid, so look before you bid. You will feel much more confident if you do this.
PROPERTY INFORMATION PACKAGE (PIP) – A package of information and instructions provided by the auction company pertaining to the property to be sold such as a contract, legal description, survey, terms and disclosure statements.
REGISTRATION – The process you must complete in order to be a qualified bidder. When you first get to the auction, you should ask to register and obtain a bid card. You will be asked to show proper identification to register. You may be required to verify that you have certified funds or cash in your possession. You must register at each auction event. This is essential before bidding.
TERMS & CONDITIONS – The legal terms that govern the rules for a specific auction. Each auction’s terms and conditions may vary and the bidder must understand them before participating in an auction. They include method of payment, buyer’s premiums, possession, reserves and other limiting factors. Usually included in published advertisements or announced by the auctioneer prior to the start of the auction.