Buying at Auction

    Buying at Auction

Auctions are a great way to purchase property and offer several key benefits to the buyers. Auction produces fair market value through competitive bidding, allowing you, the buyer, to make a smart buying decision with a seller that is committed to sell. Buyers determine the market value. Auctions provide for a timely purchase and eliminate long negotiation periods. As a buyer, you can rest easy knowing that you are competing fairly and on a level playing field.

What happens on the day of the auction?

On-site auction properties are open one hour prior to the auction. Off-site auctions are typically conducted in a ballroom facility with registration beginning one-hour prior to the auction. This gives you time to do a final visual inspection of the property and ask any last-minute questions of the auction staff. IbloCity Auction will have information available on the properties and be ready to answer your questions regarding the auction process.

What is title insurance?

Title insurance assures you a clean, clear, merchantable title to the purchased property. Title insurance will be offered on the property. The cost of the title insurance is shared between the buyer and the seller.

When will the closing be?

The real estate purchase agreement will specify a closing date, customarily on or before thirty days, following the auction. The closing is held at a title insurance company and the cost of the closing fee will be shared between the buyer and the seller. When merchantable title is obtained and both parties are prepared to close, the buyer may often be accommodated with an earlier closing. Time is of the essence for both the buyer and the seller, and our services cater to the needs of both parties.

When do I get the keys?

Keys and possession will be given at the time of closing, subject to existing lease or rental agreements, if any.

What happens to the taxes, leases, and rents of the property?

All previous years taxes will be paid prior to or at closing by the seller. Current year taxes, leases, and rents will be prorated to the day of closing.

What does "subject to seller confirmation" mean?

Seller confirmation means the seller reserves the right to accept or reject the final bid. Auction properties sell subject to seller confirmation, unless otherwise denoted. However, at IbloCity Auction, we typically have a sales success rate of OVER 90%. This means that 90% of the properties we market have met the seller's expectations. In the event the bid is declined, we work with the top bidder to reach an agreement on price. Often, we reach an agreement immediately or shortly following the auction.

What does "absolute" mean?

An absolute auction means that the property will sell to the highest bidder, regardless of price with no limiting conditions. At IbloCity we often advertise these auctions as "No minimum. No reserve." Absolute auctions are conducted with no break or recess, which are typically seen at seller confirmation auctions.

The Advantages of Buying at Auction (Click Here)

*Information provided on this page is for general knowledge. Real estate transactions may vary.