How much do these properties sell for?
Although many websites will display a price of $1, the opening bid amount for homes at auction is significantly higher. The seller also chooses a different “reserve amount” for each auction property. We do not know what the reserve amount is. When the auction ends, if the high bidder has not bid at least the reserve amount the seller is not obligated to sell the property. The seller still may choose to sell the property to the high bidder even if the high bid has not reached the reserve amount.
While viewing the property at www.Auction.com it will say whether or not the reserve has been met if you look near the current bid amount. The seller reserves the right to change the reserve price from auction to auction. Therefore we encourage you to bid at each weekly auction even if your high bid did not meet the reserve during a previous auction. It should be noted that since the home has already completed the foreclosure process, how much the previous owner owed at the time of foreclosure is no longer relevant.
Where is the auction taking place and how do I participate?
The auction is taking place entirely online, at www.Auction.com. There is no in person auction. In order to place a bid, buyers must register at www.Auction.com and place their bids through the website.
Why is this property being sold at auction?
The seller chooses to sell some of their properties through a Traditional MLS Pathway, and other properties through an Auction Pathway. Each of these pathways has different pros and cons. The seller uses both pathways in order to constantly analyze which of these pathways is best given current market conditions, and then adjusts to send more homes to one pathway vs the other. Properties placed in the Auction Pathway are simply chosen at random.
I'm an investor—can I bid on these homes?
It depends.
When the seller first places a home in auction, the first auction is generally a “First Look” auction. First Look auctions mean that only owner occupant buyers are allowed to bid and close escrow on the home. Investors, second home buyers, flippers, landlords, etc. would not be permitted to bid and close escrow on a home in a First Look auction.
However if the homes does not sell at auction, the seller may elect to place the home in a new auction the following week. Oftentimes this second auction will be open to all buyer types including investors. Only First Look auctions are limited to owner occupant buyers.
To determine if a home is part of a First Look auction, visit http://www.Auction.com, search for the property, and check for the phrase “First Look” on the page. If the auction references First Look, it’s available only to owner occupants through the First Look date. If no verbiage regarding First Look appears on the page, the auction is open to all buyer types!
Is this property currently in foreclosure?
No. The foreclosure process has fully completed and the property has already foreclosed. The home is now owned by Freddie Mac / Federal Home Loan Mortgage Corporation.
Why is there no interior access?
When the seller chooses to sell a home through the Auction Pathway, the seller decides only hours after taking ownership. At that moment, the seller has no idea if the property is vacant or occupied, empty or full of leftover personal items, clean or dirty, nor if the property is safe or unsafe for showings. Since the seller doesn’t know any of these things, all homes in the Auction Pathway don’t allow interior access—even if they’re vacant, empty, clean, and safe.
Why can this home only be purchased with cash rather than a traditional loan?
Traditional lenders will not grant a buyer a home loan without first sending an appraiser to inspect the inside of the home. Since there is no interior access available, it would not be possible for an appraiser to inspect the home, making a traditional loan impossible. Therefore, the seller will only consider selling the property for cash, or to a buyer using a hard money loan where the lender does not do a traditional appraisal and does not need interior access. In addition to a hard money loan, buyers can often use a home equity line of credit to purchase as long as we know ahead of time. No matter how buyers purchase the home, they are welcome to refinance the home into a traditional mortgage after purchase.
Sometimes if a property does not sell at auction the seller will move it to a Traditional Pathway. When that happens, interior access is allowed and buyers can make an offer using a traditional loan. If you would like to be notified if that happens, please email us to let us know.
What is the condition of this property?
Condition varies from on property to another. Although there may be damage or issues not showing in the photos, we do our best to make sure the MLS listing includes photos of the property in its actual condition as best we can.
The property I'm interested in is occupied—will the seller evict the occupants?
Homes sold through this auction program are sold “as-is / where-is”. This means that when a home is occupied, the seller cannot guarantee it will be vacant by close of escrow. The buyer assumes the risk of the home being occupied at close of escrow.
If the home becomes vacant during the auction, we will take interior photos and upload them to the listing.
If the home remains occupied during the auction and through close of escrow, it will be up to the buyer to deal with the occupants as allowable by law. When a property is occupied, we generally do not know if the occupant is the former owner, or a tenant who had a lease in place when the home foreclosed.
Do I need a real estate agent to bid?
Buyers do not need a real estate agent to participate in the auction, but are welcome to use a real estate agent to help them navigate the transaction should they win the auction. Agents are not able to register buyers to bid. Buyers can very quickly and easily register themselves by going to www.Auction.com and navigating to the page for the property on which they’d like to bid. Upon winning the auction buyers will be given a Buyer Information Sheet to fill out. If a buyer has a real estate agent, it is on this sheet a buyer would indicate they have a real estate agent and include that agent’s information. The seller does not know if a bidder is utilizing a real estate agent until after a bidder has won the auction and filled out their Buyer Information Sheet.
If you do not have an agent we would be happy to represent you and help you navigate this process at no cost to you!
If you already have an agent, please have your agent visit the property page to get answers to any questions they have about concessions, or they are welcome to contact us via email.
Please note that if you are the winning bidder and also a licensed real estate agent, the seller will not offer concessions.
Why do I keep seeing the same property at auction over and over?
If the auction ends and the high bid was not for at least the reserve amount, the seller may choose to try again and send the property back to auction the following week. If after some time the property continues to not sell through this auction pathway, the seller will remove the property from the Auction Pathway and place it in the Traditional MLS Pathway. When that happens, interior showings will be allowed, and buyers will be able to use a traditional loan to buy the property.
If you would like us to notify you when a property is available through the Traditional MLS Pathway, please contact us and let us know. We will let you know as soon as we know!
I have a question not answered on this page—how do I reach you?
Email is by far the fastest way to reach us. Please feel welcome to contact us using the contact form on this website. You are also welcome to call us.
Please note we do not receive text messages on our office phone and we will not see any text messages you send us.
