Have you ever wondered how auctions work? Below are some informational tips to get you prepared for your big day:
- Determine what you can afford, and what amount you want to spend. Have your proof of cash funds, or approval letter from your lender ready to go. View the property you are interested in, and get your questions answered. Auctions go fast and you want to be informed, and ready. Most auction companies will not allow any contingency’s like subject to financing, or inspections.
- Read and review all of their documents, earnest moneys required, and the fees that are charged in the auction. Most auction homes are sold “as is” with no disclosures. 5% is a common charged fee, and will be added to the winning bid. If you cannot physically be at the auction in person it is possible to bid on a property, but you must have the supporting documents for your Realtor.
- Register for a bidder number by showing a valid driver’s license, and reviewing some simple forms. Registration period is usually 30 minutes to 2 hours before the scheduled auction. In many cases, there is no fee to register, and you may use cash, or personal checks for the down payment. Down payments will be cashed immediately.
- The auction begins. From the first bid things move quickly. Each bidder offering their bid, the auctioneer will say “sold,” or “higher bidder,” and then you will hear going once, going twice, and then simply the auctioneer will say the bidding has stopped, and sold to the high bidder.
I was a successful bidder for our 20 foot Mako fishing boat, and won it for eleven dollars! You too can be a successful bidder!
Contact me, Tara Kelly, RS, for more upcoming auctions in Kona, and more information (808) 542-6014.
View my favorite Big Island Foreclosures.