Silent auction information
The purpose of a silent auction is to allow all buyers an opportunity to see the property in a short period of time during the open house and sell the property quickly. This is a fast and convenient method of selling homes that works well for buyers and sellers.
To bid on a silent auction property you must attend the open house and register with your name, phone number, email address and a opening bid amount. Bidding at the open house does not obligate you to buy the property.
After the open house is complete, all bidders will be called and told what the current high bid amount is and they will be asked if they want to increase their bid. Make sure you will be available immediately after the open house to receive phone calls. If you are not available you will lose your opportunity to increase your bid. Bid increments are $500 for properties under $200,000 and $1000 increments if over $200,000. This process will repeat until no higher bids are received.
Once the best offer is accepted, the purchaser will be notified and must complete a signed real estate contract for the sale before noon on the next day. You are under no obligation until this contract is signed, at which time an earnest deposit will be required for the property. Earnest money required is 1% of the purchase price to be applied to the purchase of the property. The earnest money will be held by a title company of the sellers choice until you close on the property.
You will need to provide proof of prequalification for a loan or proof of funds within 1 business day. You will be given up to 30 days to close for financing or 15 days for cash offers. You may have customary home inspections performed during the first 2 weeks of the process. If anything is not satisfactory, you may elect to terminate the transaction. Note that no repairs will be made in most cases. The property is being sold as is.
The sale will be transacted thru a title company to guarantee the home is free and clear of any liens. You will receive a title policy, the same as any normal real estate transaction.
If you are using an agent, be sure to put their name down during registration. The agent will receive 3% commission from the sale. This cost will be considered along with your bid when determining the best offer.
Note that the seller does have a reserve price on the property and the property may not be sold for less than the reserve amount. This is at the sellers discretion and the sellers may decline any and all bids not acceptable to them. Cash offers may also take precedence over a higher offer that is financed, which can take longer to close. This is entirely up to the seller. The purpose of the auction is to sell a property fast.
The property being auctioned is being sold as-is so you should conduct any inspections at the time of the open house and bid accordingly. You are under no obligation until you sign a contract as the winning bidder and you may back out at any time until the contract is signed. If you sign the sale contract and do not close on the property, your earnest money will be forfeit.