The slow part is the 30 days leading up to the auction. It
is during this period that interested buyers preview the
during Open Houses, make any inspections they desire, get
all their questions answered, and determine what they can afford
to spend. The actual auction is simply the conclusion of
everyone's effort, both the Auction Company's and the buyers — to
establish the "winners" by high bid and the completion
of the overall transaction.
Attend the Open House or Showing.
If one or more of the properties listed interests you, check
the posted showing schedule and attend an open house. All auctioned
real estate is offered "as
is and where is," which means what you see, and maybe don’t see,
is what you get. If you’re seriously interested, have an inspector or
contractor look over the property with you. Determine what the property is
worth to you "as is"—if this amount is within your price range,
then this is your working bid. All properties are sold "AS-IS" (contracts
are not contingent on any buyer or lender inspections) so Buyers should make
any and all desired inspections during these viewing hours, or if this is
not possible, call Auctio Property Auctions to schedule an appointment as
advance of the auction as possible. All auctions are on-site unless otherwise
Review properties on the Auctio.ca website
Your first stop for Auction info is the website listing or brochure summaries.
Does one or more of the properties interest you? Read the complete terms
and conditions of auction carefully, especially with regard to bidder eligibility,
financing, bid deposits, closing deadlines, purchase and sale agreement provisions,
and contract termination policies. It is assumed that you will be paying
for all purchases due to the typical 28-day closing requirement. Remember
that there is NO contingency in the Terms & Conditions agreement, and
the Purchase and Sale Contract for your inability to obtain financing.
Notify Auctio of your Interest In the Property.
recommend that you formally register your interest in a particular
lot with the Auctioneer’s Office at the earliest possible
opportunity and that you maintain contact in order to monitor
any changes in guide price or whether the property has been
sold or withdrawn prior to the auction and whether there will
Addendum to the particulars.
Attend pre-auction bidder seminars.
These events let you learn
about the auction process, ask questions, and obtain detailed
property information packages. They are free of charge. Times,
dates and locations of these Bidder Seminars are advertised in
the auction brochure.
Before you go to the Auction, Prepare.
Have your maximum bid
set in your mind. Be sure you know where and when the Auction
is scheduled. Be sure you follow the auction company's instructions
for bidder registration.
On auction day, buyers start arriving at the advertised
registration start time to "register" for their bidder's
number, inspect the property one last time, and get any last
minute questions answered. All that is required to register is
a valid driver’s license (there is no fee to register at
the live auction). Like a credit card, your bidder registration
number identifies you as an eligible buyer--don't lose it! When
registering, ask if there is any updated information about the
properties that are available. Then relax. You're prepared. You
know what you want to buy and how much you’re willing to
pay. Remember that auction sales are non-suspensive
Diligence Must be Done Beforehand". You must do your homework.
Starting the Auction
The auction begins promptly at the appointed
time with "opening remarks". The auctioneer and legal
staff will make opening comments welcoming everyone, summarizing
for the record the terms of sale, the methods of bidding and
any last minute changes or disclosures. These comments will
usually take only a few minutes, concluding with the auctioneer
any final questions. Listen carefully to all announcements
made before the auction. Announcements take precedence over
materials. This is how the auctioneer corrects, updates, adds
or deletes information before the bidding starts.
Contract of Sale
The successful high bidders
(Buyers) at every auction are bound by the written terms and
conditions as set
for each sale. This includes the Contract of Sale, which is
executed immediately after the bidding. The sample Contract
of Sale provided
is amended as necessary for each particular auction, and is
available with such amendments at the Open Houses, by mail
or fax, and
of course on-site day of the auction. The act of bidding at
the sale by anyone will be deemed a representation and warranty
the Seller and Auctio Property Auctions that he/she has read
the Terms & Conditions and Contract of Sale in their entirety,
together with any amendments and/or attachments, prior to bidding.
Then, the bidding is ready to begin! From the first bid, things
go quickly, with bidders executing their bids as necessary
to maintain the high bid. The auctioneer can and will say "sold" as
soon as he or she determines that the final bid has been made.
On the fall of the hammer, THE TRANSACTION BECOMES LEGALLY BINDING.
If you are declared the successful bidder, you will be asked
for your bidding number, and then you proceed to the contract
table to sign the contract for the contract price (which is the
purchase price plus the buyer’s premium*) and to turn over
your deposit money (10% of the contract price (minimum $5000))
is payable and completion then takes place 28 days from this
date of exchange. Deposits must be paid by banker’s draft,
certified cheque, money order or personal cheque with bank letter
of guarantee. Failure to do so may result in the property being
re-offered for sale. Properties are not sold “subject to
contract”, “subject to finance” or “subject
to inspection” when you buy at auction. They are sold
unconditionally. If you are the successful bidder, you are
legally obliged to
complete the sale.
A buyer's premium is an amount of money,
usually a percentage that is added to the bid price to determine
the total purchase price. Ex. Assume there is a 10% buyer's
premium. If you bid $75,000 on a property, then the total purchase
would be $82,500 ($75,000 plus $7,500 buyer's premium).
Most auctions will require the Buyer to close (pay
the balance of the purchase price plus closing costs) within
28 days from the date of the auction.
Finally, Bidding at auction need not be a daunting prospect provided
that you have made all of your enquires and you have your maximum
figure firmly in mind. If you have any questions before the sale
please contact us and we shall endeavour to help you.
Remember, the true market value of any given item is the value,
for which one is willing to sell, and another is willing to buy
- it is a meeting of the minds. For this reason, you can rest
assured knowing that you will never pay too much for a property
at auction. The same cannot be said for the traditional method
of selling real estate.