Buying At Auction

One of the great advantages of participating in an auction is that buyers have the opportunity to name their price in a live bidding environment. Bidders hear what other interested parties are offering so there are no direct buyer/seller negotiations. As a bidder you will have the confidence of knowing what the true value is for the property based on what others are offering. Additionally, buyers know everybody is competing under the same terms for the property. These benefits are unique to auctions and something that traditional real estate brokerage simple does not offer.

Bidder Information Package

Our Bidder Information Package (BIP) is provided so that buyers are knowledgeable about the property and are ready to purchase on auction day. Our typical BIP will have a Purchase and Sale Agreement, Seller’s Real Property Disclosure Statement, property brochure, title insurance commitment, appraisal report, home inspection, survey, community documents and area information. As a buyer, you are given an opportunity to inspect the property and review this information prior to the auction. All Young Brothers Real Estate auction property is sold in “As-Is, Where-Is” condition so buyers due diligence prior to the auction is necessary. Buyers should rely entirely on their own research; however, the information and documents provided in the BIP are derived from sources believed to be correct and reliable.

Registration and Financing

All bidders must register prior to the beginning of the auction. Our auctions require the winning bidder to place 10% of the purchase price in our escrow account with Bartlett & Deal Title Services at the conclusion of the sale. This deposit may be paid with a certified, personal or business check. Financing must be arranged prior to the auction date. All of our auction properties are sold with no contingencies (financing or otherwise). Please contact a Young Brothers Real Estate representative if you need financing recommendations, or have questions regarding payment options available.

Buyers Premium

A 10% Buyers Premium will be added to the winning bid price to arrive at the contract price. For example, if the high bid was $1,000,000, the recorded price on the contract will be $1,100,000.

Auction Day

It is recommended that registered bidders arrive to the auction site one hour prior to the auction starting. This will provide enough time to conduct a final inspection of the property and meet with our staff to answer any questions. Prior to the auction beginning, the Auctioneer will completely explain the process and conduct a “mock auction” to demonstrate the bidding process. If you are the winning bidder, you will be escorted to a separate area where paperwork will be completed and the remaining deposit, if any, shall be paid. In most cases a closing date within 30 days will be established and 10% of the final purchase price is due in certified funds or wire the next business day after the auction.

Auction Types

• Minimum Bid Auction - An auction where the Auctioneer will only accept bids at or above a price determined by the Seller. This Minimum Bid amount is published in the promotional material and is announced at the beginning of the auction.
• Reserve Auction - In a Reserve Auction the Seller does not guarantee that the property will be sold and reserves the right to accept or reject the highest bid within a specific time period. With this type of auction a “suggested opening bid” could either be published or not since the Seller has no obligation to sell and must approve and agree to the final price.
• Absolute Auction - This type of auction is also known as No Reserve and is the most effective type of auction. During an Absolute Auction the property will be sold on auction day regardless of price. Absolute Auctions generate the most bidders and buyer excitement since a sale is guaranteed.