BUYING A PROPERTY AT AUCTION

Frequently Asked Questions about Buying Real Estate at a Laird Real Estate Auction

Q.) How does buying real estate at auction differ from more conventional methods?

A.) Actually, our process is the “conventional” method. Property was exchanged at auctions for hundreds of years before there was ever such a thing as a real estate agent or multiple listing service. An auction is still the fastest, cleanest way to bring buyers and sellers together and complete the sale.

Q.) I've never been to an auction. Is there any danger of showing up and making a “rookie mistake?”

A.) We recommend that you come to one of our other auctions first, just to observe. You're welcome to join us, and please; Feel free to ask us questions. We want you to enjoy the experience.

Q.) If only a few bidders show up, I might own the property with a low-ball bid, right?

A.) Maybe, maybe not. There are three types of auctions that we conduct;

1.) Subject to Confirmation - The seller has the final say

in whether they want to accept the final bid or not.

2.) Absolute Auction - The property is sold to the highest

and best bidder without reserve or restriction as to

the price.

3.) Minimum Bid - There is a minimum opening bid made

known to all involved.

You will know before the auction which type you are bidding at. By the way, it's not a good idea to come to an auction in hopes of stealing a property. If you're not a serious bidder you'll soon be left behind by the qualified investors we typically attract.

Q.) Can I “accidentally” make a winning bid beyond my means?

A.) When the bidding reaches a level where you are no longer comfortable, or goes beyond your available financing, you can simply stop bidding. As soon as you are outbid, you are no longer obligated unless you bid again.

Q.) Isn't an auction kind of a “last resort,” used to sell distressed properties?

A.) Absolutely not! In fact, if you look at the real estate we present, you'll see some magnificent upscale properties. People choose our method because it's fast and clean. There are many reasons why people are in a hurry to get their real estate sold; They may be settling an estate and want to distribute the proceeds to the heirs quickly. They may be relocating to a new city and need their equity to finance the move. They may have tried other methods and failed to find a buyer. Heck, they may just want to avoid having dozens of people traipsing through their home and then presenting low-ball offers.

Q.) Where does the auction take place?

A.) Usually, the auction is held at the property so you can see first-hand what you're bidding on. If that's not practical for any reason, we can hold the auction in a nearby hotel ballroom. In either case, you will have every opportunity to carefully inspect the property before bidding.

Q.) Is there any kind of guarantee or warranty on an auction property?

A.) Although we sell all properties in “As-Is, Where Is” condition, you will receive all protections as in any other real estate transaction because the buyer receives the title policy and warranty deed. This protects the buyer from back taxes and back liens on the property. And, of course, you will be given every opportunity to conduct a detailed inspection of the property in advance if you wish to.

Q.) When will I know if my bid is accepted?

A.) One of the great things about buying at a Laird Real Estate Auction is that all bidders are in the same place. You know who you're bidding against and exactly what the last offer was. All cards on the table, no phantom offers…what you see is what you get. If you place the winning bid, you will know it the second you hear the word “sold” from the auctioneer. You'll exercise your cash deposit and make plans for the closing. It's that clean and simple.

Q.) How soon will I have to come up with the balance?

A.) You will be asked to exercise a substantial cash deposit down on the day of the auction. The balance is usually due within 30. You should have your financing in place before the auction so you can bid comfortably.

Q.) Do I have to pay some premium or commission above my bid amount.

A.) We ask our sellers to pay all fees. We don't think the buyer should pay the cost of marketing and conducting the auction. Your bid is the final amount you pay. Finance costs are between you and your lender.